VZCZCXRO6193
OO RUEHCHI RUEHDT RUEHHM
DE RUEHML #1830/01 1170722
ZNR UUUUU ZZH
O 270722Z APR 06
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0735
INFO RUEHZS/ASEAN COLLECTIVE PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHGV/USMISSION GENEVA PRIORITY 2158
RUCPDOC/USDOC WASHDC PRIORITY
RUEHKO/AMEMBASSY TOKYO 2627

UNCLAS SECTION 01 OF 02 MANILA 001830 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
DEPT FOR EAP/MTS 
STATE PASS TO USTR FOR BWEISEL AND DKATZ 
TREASURY FOR UNDER SECRETARY ADAMS 
USDOC FOR 4430/ITA/MAC/ SBERLINGUETTE 
USDOC PASS TO USPTO FOR PETER FOWLER 
 
E.O. 12958: N/A 
TAGS: ETRD EAGR ETTC EINV KIPR RP
SUBJECT:  AMBASSADOR'S MEETING WITH TRADE AND INDUSTRY 
SECRETARY FAVILA: IPR, BILATERAL TRADE, DOHA ROUND 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION - 
PROTECT ACCORDINGLY 
 
------- 
SUMMARY 
------- 
 
¶1. (SBU) In her first meeting with Trade and Industry 
Secretary Peter Favila on April 25, the Ambassador focused 
 
SIPDIS 
discussion on intellectual property rights (IPR), our 
bilateral trade relationship, and the WTO Doha Round 
negotiations.  Favila and other senior GRP leadership 
continue to highlight strategies to further improve IPR 
protection and expressed readiness to work with us to 
realize concrete results.  The Ambassador and Favila agreed 
that we share a strong bilateral trade relationship that 
could eventually grow even stronger under a Free Trade 
Agreement (FTA).  Neither government, however, is prepared 
to enter into negotiations at this time.  Favila reaffirmed 
GRP support for the U.S. position in the WTO Doha Round. 
The meeting reinforced a positive, cooperative relationship 
and set the stage for continued engagement on trade and 
investment.  End Summary. 
 
¶2. (SBU)  The Ambassador, accompanied by Econ Counselor, 
Commercial Counselor, and Econ Officer, met with Trade and 
Industry Secretary Peter Favila on April 25.  Favila was 
accompanied by Director General Adrian Cristobal of the 
Intellectual Property Office (IPO), Foreign Trade Service 
Officer Michelle Sanchez, Bureau of International Trade 
Relations (BITR) Director Butch Benedictos, and BITR 
Assistant Arlene Ligad.  The Ambassador congratulated Favila 
for the GRP's recent progress on improving its intellectual 
property rights (IPR) protection regime.  Favila had just 
recently returned from a GRP "economic roadshow" with 
Finance Secretary Gary Teves in London and New York.  He 
said that the trip went well, and they received a positive 
review with particularly encouraging commentary from the 
business community in New York. 
 
¶3. (SBU) Favila said that the GRP appreciates the USG's 
recognition of improvements in the country's IPR regime, but 
acknowledged that much still needs to be done.  Accordingly, 
the GRP has outlined strategies to ensure further progress 
in the months ahead.  Favila said that he had also recently 
met with the Chinese Ambassador to raise serious concerns 
about the smuggling of counterfeit and pirated goods from 
China to the Philippines. 
 
¶4. (SBU) Cristobal requested assistance in facilitating 
meetings with U.S. stakeholders, namely the International 
Intellectual Property Alliance (IIPA) and the American 
Publishers Association.  Cristobal said that interaction 
with IIPA and some other stakeholders is limited to 
industry's 301 submissions to USTR, which are often 
unfavorable to the Philippines.  Cristobal underscored that 
IPO would welcome opportunities to dialogue with these 
stakeholders.  Cristobal also requested that the USG and 
U.S. industry work with the IPO to facilitate copyright 
licensing programs for universities in order to make 
educational texts affordable.  Cristobal noted the 
importance of USG support for IPO's current approach that 
strikes a balance between IPR education and enforcement, 
rather than enforcement alone.  He added that enforcement is 
improving, citing 28 IPR convictions in the first quarter of 
¶2006.  Cristobal also expressed appreciation for the many 
training opportunities provided to the Philippines by the 
U.S. Patent and Trademark Office. 
 
¶5. (SBU) In response to U.S. auto industry concerns about a 
new tariff regime for vehicle imports, which is part of the 
Japan Philippines Economic Partnership Agreement (JPEPA) 
negotiations, Favila said that the GRP has consulted 
extensively with Ford Philippines and is addressing Ford's 
concerns.  The Ambassador, on behalf of Ford, conveyed 
appreciation for GRP efforts and explained that Ford wants 
to ensure that it has ample time to adapt to lower tariffs 
under JPEPA for Japanese SUVs. 
 
¶6. (SBU) Secretary Favila and the Ambassador agreed that 
 
MANILA 00001830  002 OF 002 
 
 
neither government is ready to begin negotiations on a U.S. 
- Philippines Free Trade Agreement (FTA).  She noted that 
our bilateral trade relationship is strong and dynamic, and 
our Trade and Investment Framework Agreement (TIFA) serves 
as an effective mechanism to address bilateral trade issues. 
An FTA may be possible in the years ahead, but the GRP needs 
to focus in the near term on making progress on key trade 
and investment issues such as corruption, intellectual 
property rights, and customs procedures.  The Ambassador 
urged Favila to review closely U.S. FTAs with other 
countries and the ongoing U.S. FTA negotiations with 
Thailand and Malaysia in order to begin identifying and 
addressing issues now.  She explained that such preparation 
would better position the Philippines for a potentially 
smooth and accelerated future FTA with the U.S.  The 
Ambassador highlighted the complexities of negotiating FTAs 
since our agreements cover trade, labor, environmental and 
other key standards. 
 
¶7. (SBU) The Ambassador thanked Favila and the GRP for its 
support in the WTO Doha Round negotiations.  Favila said 
that the GRP would continue to support the U.S. on 
agriculture and other areas. 
 
------- 
COMMENT 
------- 
 
¶8.  (SBU) Favila is sympathetic to business concerns and 
supportive of economic reforms.  The Ambassador's meeting 
reinforced a positive, cooperative relationship and set the 
stage for continued engagement on trade and investment 
issues.  Since the decision to move the Philippines from the 
Special 301 Priority Watch list to the Watch List, Favila 
has taken an enthusiastic interest in IPR issues, which will 
help maintain high-level attention to key initiatives.  The 
Embassy is planning a series of roundtable discussions 
beginning in May between U.S. industry and the GRP in order 
to foster collaboration and further progress on IPR 
protection, education, and enforcement. 
 
KENNEY