VZCZCXRO9429
RR RUEHAG RUEHDF RUEHIK RUEHLZ
DE RUEHLI #1797 2360636
ZNR UUUUU ZZH
R 240636Z AUG 06 ZDK
FM AMEMBASSY LISBON
TO RUEHC/SECSTATE WASHDC 5092
INFO RUCNMEM/EU MEMBER STATES
RUEHBJ/AMEMBASSY BEIJING 0326
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHBS/USEU BRUSSELS

UNCLAS LISBON 001797 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
USTR FOR POSNER (OGC), WINTER (CHINA), AND MCCOY (IPR) 
STATE FOR EAP/CM CRANE, EB/TPP/BTA SAEGER, AND EB/TPP/IPE 
FELSING 
 
E.O. 12958: N/A 
TAGS: ECON ETRD AORC KIPR EURM WTRO USTR CH PO
SUBJECT: WTO CONSULTATIONS ON CHINA IPR: PORTUGAL AGREES IN 
PRINCIPLE 
 
REF: STATE 126703 
 
¶1. (U) SUMMARY. Embassy staff met with MFA Multilateral 
Services Director Joana Tavares to encourage support as a 
co-complainant against China for IPR violations.  Tavares 
agreed in principle with the US proposal but noted that she 
would need to consult with the Ministry of Economy before 
rendering a final decision on Portugal's position.  Tavares 
underscored the importance that Portugal places on the 
protection of Intellectual Property Rights (IPR), 
particularly as they relate to Geographic Indicators (i.e. 
Port wine).  She also noted that Portugal was hoping the EU 
would support permanent anti-dumping measures against China's 
footware and textile industries when provisional measures 
expire at the end of October.   END SUMMARY. 
 
¶2. (U) On August 14, Acting Pol/Econ Chief and Pol/Econ 
Officer delivered reftel points to MFA Multilateral and 
Regional Services Director Joana Galiano Tavares.  Tavares 
agreed in principle with the US proposal, acknowledging that 
China's IPR policies and enforcement were lenient.  However, 
she commented that she would need to consult with the 
Ministry of Economy (MOE) on technical issues before 
rendering a decision on Portugal's position.  (Note:  MOE 
officials have been unavailable for comment due to August 
holidays and/or illness.)  Given MOE consent, Tavares noted 
that Portugal would endorse co-sponsoring the US complaint 
during internal EU debate but explained that several member 
states were reluctant to support such a move.  Portugal would 
only sign on as a co-complainant based on EU consensus. 
 
¶3. (U) Tavares underscored the importance Portugal places on 
IPR protection and the need to protect Geographic Indicators 
(GIs).  As discussions get underway in the second phase of 
the US-EU Wine Agreement, Portugal via the EU would be 
pressing hard to protect its Port and Madeira wines.  MOE 
officals have previously expressed that they felt the EU had 
sacrificed Portugal's GI interests during the first phase. 
They were determined not to see this happen again. 
 
¶4. (SBU) Tavares further underscored the importance of 
anti-dumping rules, noting Portugal's concern with China's 
dumping on the EU footware and textile markets.  Portugal, 
along with other EU footware and textile producers - Italy, 
Spain, and France - were supporting permanent EU Anti-Dumping 
measures to replace the provisional measures due to expire in 
October 2006.  She acknowledged that some non-footware and 
textile producing member states opposed permanent measures, 
despite inferior product quality. 
 
¶5. (SBU) COMMENT. Portugal usually hides behind EU consensus 
on these issues.  By expressing qualified support in this 
instance, not only is Portugal attempting to sway the US 
position on GIs, but also reinforcing its anti-dumping 
position within the EU.  The Portuguese recognize that the US 
is very unlikely to change its GI stance, but they will 
continue to reach out at every possible opportunity. 
O'Neal