VZCZCXRO2149
PP RUEHDBU
DE RUEHNT #1678/01 2670844
ZNY CCCCC ZZH
P 240844Z SEP 07
FM AMEMBASSY TASHKENT
TO RUEHC/SECSTATE WASHDC PRIORITY 8509
INFO RUEHAH/AMEMBASSY ASHGABAT 3287
RUEHTA/AMEMBASSY ASTANA 9471
RUEHEK/AMEMBASSY BISHKEK 3901
RUEHDBU/AMEMBASSY DUSHANBE 3766
RUEHBUL/AMEMBASSY KABUL 1906
RUCPDOC/DEPT OF COMMERCE WASHDC

C O N F I D E N T I A L SECTION 01 OF 02 TASHKENT 001678 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR SCA/CEN 
 
E.O. 12958: DECL: 09/24/2017 
TAGS: ECON EFIN ETRD WTRO ZK UZ
SUBJECT: DEMARCHE DELIVERED: CENTRAL-ASIA TIFA COUNCIL 
MEETING 
 
REF: STATE 117583 
 
TASHKENT 00001678  001.2 OF 002 
 
 
Classified By: CLASSIFIED BY ECON OFF B. OLSEN FOR REASONS 1.4 (B, D). 
 
¶1. (U) This is an action request.  Please see paragraphs 5 
and 6. 
 
¶2. (C) Summary: DCM delivered reftel demarche on September 14 
to Uzbek Minister for Foreign Economic Relations, Elyor 
Ganiev.  Ganiev found the Trade and Investment Framework 
Agreement (TIFA) meeting useful, saying he would like to see 
more US presentations at the 2008 meeting.  The Government of 
Uzbekistan (GOU) is comfortable with the next meeting 
occurring in Turkmenistan or Tajikistan.  He reiterated 
Uzbekistan's interest in U.S. investment, especially in light 
industry.  The GOU does not intend to accede to Article 18 of 
the Berne Convention due to retroactive fines for 
non-compliance.  All members of the Eurasian Economic 
Community (EurAsEC) have harmonized customs forms and duties. 
 Ganiev said Kyrgyzstan, as a WTO member, is EurAsEC's weak 
link due to China's dominance of the Kyrgyz economy.  The GOU 
is interested in being a regional conduit for fiber optic 
communications, but believes it is too early, as only 
Kazakhstan has similar capabilities.  End summary. 
 
¶3. (C) In a two-hour meeting, Minister Ganiev told the DCM 
the TIFA meeting increased mutual understanding of regional 
issues and problems of trade and investment.  He especially 
appreciated the presentations by U.S. businesses.  Ganiev 
reiterated Uzbekistan's desire to increase U.S. investment, 
especially in industrial sectors.  He specifically mentioned 
textiles, food processing, light industry and energy 
infrastructure.  (Note: The majority of natural resources are 
considered critical to national security and the GOU does not 
want foreign businesses directly involved in extractive 
industries.  End note.)  He said the next TIFA meeting should 
include more U.S. businesses and segments on textiles and 
food processing.  The GOU is comfortable with either 
Turkmenistan or Tajikistan holding the 2008 TIFA meeting and 
any date is workable; Ganiev said these countries should 
share their meeting proposals with other TIFA members. 
 
GOU frustrated with USG and Berne Convention 
---------------------------------------- 
 
¶4. (C) Regarding Intellectual Property Rights (IPR) and the 
Berne Convention, Ganiev politely complained that for 10 
years the U.S. has mentioned IPR protection in connection 
with the Generalized System of Preferences (GSP).  Every 
year, he said, the U.S. encourages the GOU to join a 
convention or agreement in order to avoid losing GSP 
privileges.  Ganiev said the GOU was tired of hearing the 
U.S. push this issue and threaten to remove privileges, when 
each year they are given.  He added that the GSP is 
"unimportant, it will be given or not given"; the impact of 
privileges is decreasing as Uzbekistan imports fewer US 
goods.  The sticking point for not adopting Article 18 is the 
retroactive fines that, in Ganiev's opinion, would be 
assessed for Uzbekistan's many years of not protecting the 
works of deceased artists.  Such a fine "is unacceptable", he 
said, as it would greatly exceed the value of GSP privileges; 
Uzbekistan should not be held responsible for the lack of IPR 
protection during the Soviet era. 
 
Action Request 
-------------- 
 
¶5. (SBU) Uzbekistan appears to be using a similar argument to 
Russia's when it adopted Article 18 with reservation.  Post 
requests guidance (L and EB) on the application of 
retroactive fines from the adoption of Article 18.  This 
seems to be the only barrier to Uzbekistan's full accession 
to the Berne Convention; if Uzbekistan can avoid retroactive 
fines, the GOU will likely adopt Article 18. 
 
¶6. (SBU) Ganiev said Uzbek lawyers told him the U.S. has not 
joined Article 18 of the Berne Convention.  Post requests the 
text of the U.S.'s adoption of the article and a brief 
history of the adoption, so that we may set the record 
straight with the GOU.  POC is Econ Officer Briana Olsen. 
 
EurAsEC Customs 
--------------- 
 
 
TASHKENT 00001678  002.2 OF 002 
 
 
¶7. (C) In principle, said Ganiev, all EurAsEC members use 
customs forms that meet international standards set forth by 
the World Customs Organization.  Therefore, no amendments on 
this topic are planned.  Duty harmonization is increasingly 
complicated as EurAsEC members look towards WTO accession. 
Ganiev mentioned the case of Kyrgyzstan, whose domestic 
producers have been "killed" due to zero tariffs and China's 
large market share.  EurAsEC fears Kyrgyzstan will become an 
unregulated conduit for goods to and from China should other 
EurAsEC members join WTO.  Uzbekistan is playing the wait and 
see game before it chooses the WTO over EurAsEC.  Ganiev said 
Afghanistan is welcome to harmonize its form with 
Uzbekistan's. 
 
Fiber Optic Capabilities 
------------------------ 
 
¶8. (SBU) Ganiev reiterated the message he gave at TIFA: 
Uzbekistan's fiber optic network stretches to all its borders 
and has the capacity to act as a transit hub for a regional 
network.  In his opinion, Uzbekistan is well-placed to 
connect China to Europe and Central Asia to Russia and 
Europe.  He said that aside from Kazakhstan and Uzbekistan, 
South and Central Asian nations are not equipped with fiber 
optic networks.  Without roads, there cannot be cables. 
Ganiev expressed concern that Afghanistan's ring road is 
taking a long time to build; Iran is very active in 
connecting to western Afghanistan, which is also the most 
convenient way for Uzbekistan to transport goods.  The DCM 
asked Ganiev to share information on Uzbekistan's fiber optic 
network.  Ganiev said the topic is moot in the region, as 
Turkmenistan, Tajikistan, Afghanistan and Kyrgyzstan are 
unconnected.  He implied the Uzbeks would not be able to 
share such information.  He added that Uzbekistan is 
interested in being the regional conduit for financial 
reasons. 
NORLAND