VZCZCXRO2081
RR RUEHBI RUEHLH RUEHPW
DE RUEHIL #3762/01 2401341
ZNR UUUUU ZZH
R 281341Z AUG 07
FM AMEMBASSY ISLAMABAD
TO RUEHC/SECSTATE WASHDC 1381
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
RUEHRC/USDA FAS WASHDC 4097
RUEHKP/AMCONSUL KARACHI 7189
RUEHLH/AMCONSUL LAHORE 3268
RUEHPW/AMCONSUL PESHAWAR 1704
RUEHBI/AMCONSUL MUMBAI 3710

UNCLAS SECTION 01 OF 02 ISLAMABAD 003762 
 
SIPDIS 
 
STATE FOR SCA/PB, EB/TPP, EB/IFD/OIA, AND EB/IFD/OMA 
USAID FOR ANE MWARD 
TREASURY FOR OSSA 
COMMERCE FOR ANESA/OSA 
MANILA PASS USED AT ADB 
STATE PASS USTR FOR RGERBER, DHARTWICK 
 
SENSITIVE 
SIPDIS 
 
E.O.  12958:  N/A 
TAGS: EFIN ECON EINV ETRD PREL PK
SUBJECT:  MINISTRY OF COMMERCE ON BIT, ROZS AND DATA EXCLUSIVITY 
 
¶1.  (U)  This is an action request.  Please see para 3. 
 
SUMMARY 
- - - - - - - - - 
 
¶2.  (SBU)  Econ Counselor met August 27 with Jamshid Khan, Joint 
Secretary, Ministry of Commerce at his request to discuss next steps 
 
SIPDIS 
on the Bilateral Investment Treaty (BIT), GOP concerns regarding the 
Reconstruction Opportunity Zones (ROZs), and a possible ROZ mission 
to the U.S.  Econ Counselor inquired about the status of the data 
exclusivity legislation, which is now back at the Ministry of Health 
after a Ministry of Commerce review for consistency with the WTO 
Agreement on Trade-related aspects of Intellectual Property Rights 
(TRIPS).  Raheela Tajwar, Deputy Secretary of Commerce, also 
participated in the meeting. 
 
ROZs 
- - - - 
 
¶3.  (SBU)  Khan made a pitch for inclusion of the cotton trouser 
categories (347 and 348) on the ROZ product list.  Econ Counselor 
responded that considerable effort had gone into selecting the 
categories to maximize the benefit to Pakistan and increase the 
chances that the U.S. Congress would approve the legislation.  Khan 
remarked that Levi Strauss was particularly interested in locating 
to a ROZ site to produce cotton trousers, adding that it was very 
likely that not all goods produced in the ROZs would be destined for 
the U.S.  The Levi Strauss Director of Corporate Affairs is lobbying 
for inclusion of the 347 and 348 categories, according to Khan.  He 
also questioned why the 338 and 339 categories (cotton knit shirts) 
were only partially covered.  ACTION REQUEST:  Post would appreciate 
information to respond to Khan's question.  END ACTION REQUEST. 
 
¶4.  (SBU)   Khan also requested that the entire province of 
Balochistan be included in the legislation.  He argued that all of 
Balochistan has the same economic development needs as the FATA and 
earthquake-affected zones and also suffers from negative effects of 
political extremism. 
 
¶5.  (SBU)  The Ministry of Commerce, in conjunction with its Hunton 
and Williams consultants, is starting to organize a delegation to go 
to Washington to lobby for ROZ passage.  Khan commented that 
replicating the positive impression left by the Karachi Chamber of 
Commerce representatives' visit to Congress and U.S. agencies would 
assist in passage of ROZ legislation. The Ministry is looking for 
business people from the designed ROZ areas who are interested in 
investing there and who preferably already have visas, given the lag 
time between approval and actual visa issuance.  Post will work with 
the Ministry as appropriate and apprise Washington as plans 
develop. 
 
Bilateral Investment Treaty 
- - - - - - - - - - - - - - - - - - - 
 
¶6.  (SBU)  The GOP will hold an interagency meeting August 30 to 
discuss next steps on the BIT.  Khan identified five remaining areas 
where agreement has not been reached and his sense of the degree of 
flexibility on each side: 
 
--  scope and coverage (Article 2).  Khan believes neither side has 
any flexibility here. 
--  transparency (Articles 11 and 20.6).  Khan believes that the 
U.S. has flexibility here.  Board of Investment (BOI) Secretary 
Mushque Malik  told us the same thing last week. 
--  claims on behalf of an enterprise (Article 24.6).  Khan thought 
the U.S. has some flexibility here, as did Malik. 
--  investment agreements (Article 24.1).  Khan's impression is that 
neither side has flexibility here. 
--  arbitration rules.  Khan did not comment on the GOP position 
here, but highlighted that the BOI negotiates on behalf of the GOP. 
Post will follow up on results of the August 30 meeting. 
 
Data Exclusivity 
- - - - - - - - - - - 
 
¶7. (SBU)  Economic Counselor recounted her August 25 meeting with 
the Secretary of the Ministry of Health Dr. Khushnood Akhtar Lashari 
who said that the data protection amendment had moved from the 
 
ISLAMABAD 00003762  002 OF 002 
 
 
Ministry of Health to the Ministry of Commerce.  Raheela Tajwar, 
Deputy Secretary of Commerce, said that that the Commerce Ministry 
WTO division had reviewed the legislation for consistency with 
TRIPS, but that the draft is now back at the Ministry of Health. 
She did not know if any changes had been made, but highlighted that 
this legislation would not/not be TRIPS-plus.  Both Tajwar and Khan 
expressed their support for this legislation.  Econ Counselor 
expressed interest in seeing a draft, remarking that many other 
countries working on data exclusivity had shared drafts with the 
U.S., but Tajwar and Khan did not take the bait. 
 
¶8. (SBU)  Econ Counselor highlighted the importance of passage of 
TRIPS-consistent data exclusivity legislation for innovation and the 
development of life sciences industries in Pakistan as well as the 
key role progress (or lack thereof) on this issue will play in 
determining the outcome of Pakistan's out-of-cycle review.  Khan 
suggested writing another letter to the Ministry of Health 
highlighting our concerns.  Comment:  During the Ambassador's 
introductory calls on the Minister of Health and Commerce, they both 
expressed interest in seeing this legislation passed and seemed to 
understand the importance of securing National Assembly approval 
quickly.  We will continue to pursue this issue.  End comment. 
 
PATTERSON