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PP RUEHCHI RUEHFK RUEHHM RUEHKSO RUEHPB
DE RUEHKO #3567/01 1790623
ZNR UUUUU ZZH
P 280623Z JUN 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3745
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION PRIORITY
RUCNMEU/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHKSO/AMCONSUL SAPPORO PRIORITY 8101
RUEHNAG/AMCONSUL NAGOYA PRIORITY 6854
RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 0226
RUEHFK/AMCONSUL FUKUOKA PRIORITY 6950
RUEHNH/AMCONSUL NAHA PRIORITY 9560
RUEHGV/USMISSION GENEVA 2884

UNCLAS SECTION 01 OF 02 TOKYO 003567 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/J, EAP/EP, EB/TPP/IPE. 
STATE EAP/J PLEASE PASS TO IPR OFFICE, JAPAN OFFICE 
COMMERCE For National Coordinator For IPR Enforcement CIsrael 
 
E.O. 12958: N/A 
TAGS: KIPR ETRD ECON JP
SUBJECT: Japan Backs Anti-Counterfeiting Trade Agreement Proposal 
 
TOKYO 00003567  001.2 OF 002 
 
 
¶1.  Summary: 
(SBU) Japanese Trade and Foreign Ministry officials expressed 
unanimous support for USTR's proposal to revise the objectives of 
Japan's efforts to promote a global framework on preventing 
proliferation of counterfeit and pirated goods by seeking a 
high-standards Anti-Counterfeiting Trade Agreement among a select 
group of like-minded countries.  The Japanese side would like to 
learn more about what exactly the United States wants to include in 
the agreement and which standards the U.S. considers essential. 
End Summary 
 
---------- 
Background 
--------- 
 
¶2.   (SBU) USTR's Chief Negotiator for IPR Enforcement, Stanford 
McCoy met with officials of the Ministry of Foreign Affairs (MOFA) 
and METI (Ministry of Economy, Trade and Industry) and the 
Intellectual Property Strategy Headquarters (IPSH) in Tokyo on June 
13 and June 14.   In each meeting McCoy explained USTR's concept of 
a plurilateral, TRIPS-plus Anti-Counterfeiting Trade Agreement 
(ACTA) which would aim to set a "gold standard" for IPR enforcement 
among a small number of like-minded countries, and which other 
countries might aspire to join.  McCoy stressed that this should be 
a freestanding agreement, not related to any international grouping 
such as the G-8 or OECD, which might make it more difficult to 
construct a high-standards agreement.  McCoy pointed out that the 
United States has garnered a lot of experience negotiating 
high-standards IPR agreements (aside from the enforcement elements) 
as part of the Free Trade Agreements it has negotiated in recent 
years.  Potential partners in the agreement could include Australia, 
Singapore, Korea, New Zealand, Switzerland, Morocco, Jordan, EU 
countries, Mexico and Canada.  McCoy's discussions with the same 
officials on a possible WTO case against China on IPR will be 
reported separately. 
 
------------------------------------------ 
GOJ welcomes Anti-Counterfeiting Agreement 
------------------------------------------ 
 
¶3.  (SBU) Japanese officials were unanimously enthusiastic in their 
support for USTR's proposed Anti-Counterfeiting agreement.  They 
were surprised, but happy that the United States had responded with 
a strong counter-proposal.  (Japanese officials admitted in the 
meetings that, up to now, only France had responded with enthusiasm 
to their earlier anti-counterfeiting treaty idea.)  They promised to 
study the proposal further and send questions via the Japanese 
Embassy in Washington.  Tadaatsu Mohri, Principal Deputy Director of 
MOFA's International Trade Division, said the GOJ had wanted to 
continue to raise the issue within the G-8 where Prime Minister 
Koizumi had proposed it, but was willing to listen to U.S. arguments 
about why it should be a freestanding agreement.  Japanese officials 
had hoped to use the expertise of the OECD staff to help them in 
drafting and negotiating an anti-counterfeiting treaty, but seemed 
reassured when McCoy assured them that USTR probably had sufficient 
expertise in the area that it was not necessary to enlist the OECD 
or another international organization. 
 
¶4.  (SBU) MOFA, METI, and IPSH officials all wanted to know more 
about what standards and core concepts the USG considered essential 
to the proposed agreement.  IPSH Secretary General Arai asked for 
USTR to provide a draft agreement or at least a copy of the IPR 
section of recently negotiated FTAs.  McCoy agreed that the United 
States and Japan should discuss this further and reach a mutual 
understanding on the key elements, based upon which they could 
approach other governments.  McCoy reminded GOJ officials that Japan 
would need to continue its leadership role with respect to this 
agreement, with the United States as its partner, and that Japanese 
officials would need to do much diplomatic legwork. 
 
¶5.  (SBU) Several Japanese officials wondered about a timetable for 
negotiating the agreement.  IPSH Secretary-General Arai proposed 
that the United States and Japan should set a goal of negotiating an 
agreement within one year, and coming into effect one year later. 
Arai cautioned that it would be a shame if the like-minded countries 
were to become bogged down arguing amongst themselves about what 
should be included -- that would only provide amusement for the 
counterfeiters without improving the situation.  For that reason, he 
advised that the USG should concentrate on a set of TRIP-plus 
standards on which there is already some consensus.   Arai also 
 
TOKYO 00003567  002.2 OF 002 
 
 
hoped the U.S. and EU would not become embroiled in side issues, 
such as geographical indications. 
 
------- 
Comment 
------- 
 
¶6. (SBU) Japanese officials seemed genuinely delighted and surprised 
to have received USTR's well-thought out counter-proposal, but 
seemed uncertain about how to move ahead.  Apparently GOJ officials 
had hoped to rely on the expertise of the OECD to help them draft a 
treaty and had to be reminded several times that the United States 
expected Japan to take the lead jointly with the United States in 
sharing the proposal with other countries. 
 
¶7.  (U) This cable has been cleared by USTR Chief Negotiator for IPR 
Enforcement Stanford McCoy. 
 
DONOVAN