VZCZCXYZ0021
OO RUEHWEB

DE RUEHSG #1045/01 3361411
ZNR UUUUU ZZH
O 011411Z DEC 08
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4006
INFO RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SANTIAGO 001045 
 
STATE PLEASE PASS TO USTR KATE DUCKWORTH 
STATE FOR WHA/EPSC, EEB/TPP/BTA/EWH, EEB/TPP/MTA/IPC 
TREASURY FOR SSENICH 
COMMERCE FOR KMANN 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KIPR PREL CI
 
SUBJECT:  INTELLECTUAL PROPERTY:  DIRECON DG FURCHE PLEDGES GOC 
ACTION 
 
REF:  SANTIAGO 419 
 
¶1. (SBU) SUMMARY:  Ambassador Simons met with Director General 
Furche, November 25, to press for progress on implementation of 
Chile's intellectual property rights (IPR) commitments under the 
U.S. - Chile Free Trade Agreement (FTA).  Furche claimed Chile was 
making progress and cited three laws currently before the Congress: 
a copyright law, a law on piracy and illegal commerce, and a law on 
plant variety.  He agreed to ask for a higher priority on the 
copyright legislation, which might speed its approval.  Furche said 
he was interested in working on an information folio on the FTA's 
successes in Chile.  He was pleased at the outcome of the recent 
APEC Summit and the bilateral meeting between Secretary Rice and FM 
Foxley.  Furche confirmed he or FM Foxley would attend the Pathways 
Ministerial in Panama.  He also noted interest in the Trans-Pacific 
Partnership was growing.  END SUMMARY. 
 
¶2. (U) In a November 25 meeting at the MFA's Economic Directorate 
(DIRECON), Ambassador Paul Simons and Econoff met with Director 
General Carlos Furche and Paulina Nazal, Head of the North America 
Division. 
 
Progress On IPR Commitments 
--------------------------- 
 
¶3. (SBU) Ambassador Simons emphasized Chile needed to make more 
progress on implementing its IPR commitments under the FTA.  This 
was a critical moment for the GOC, but the U.S. was seeing little 
movement with regard to the concerns we had raised in April (ref). 
DG Furche claimed Chile was making progress.  The Congress was 
currently considering three draft IPR-related laws:  1) The Senate 
was working on a copyright law that had been approved by the Chamber 
of Deputies in October 2007 (which had over 200 proposed 
amendments).  DIRECON recognized the importance of strengthening 
this law to incorporate the recommendations on internet service 
provider liability, exceptions and limitations, and penalties 
previously submitted by USTR.  2) The Senate had approved a law on 
Illegal Commerce and Piracy in early November, which had moved to 
the Chamber of Deputies for their approval.  3) The GOC had recently 
(in the last few days) introduced a law that would ratify the 
International Convention for the Protection for New Varieties of 
Plants (an FTA obligation). 
 
¶4. (SBU) The Ambassador noted the lengthy approval process involved 
with the copyright law and asked if Congress or the GOC could 
accelerate this process.  Furche agreed the legislation was bogged 
down.  It had been given low priority in the Congress.  He would try 
to get the GOC to raise the priority to "maximum urgency," which 
could speed up the process considerably.  Furche was committed to 
clearing all three laws through the Congress as soon as possible. 
The Ambassador offered to meet with Chilean members of Congress to 
highlight the importance of the legislation and outline U.S. 
concerns. 
 
¶5. (SBU) In response to the Ambassador's query on the status of 
Chile's patent process, Paulina Nazal explained the Ministry of 
Health had proposed new draft regulations related to patents in 
July.  The GOC thought these regulations might address some concerns 
expressed by pharmaceutical companies.  The Ministry of Health had 
received comments on the draft regulations, which were now ready for 
approval by the Presidency.  Once approved, they would be published 
and implemented, however this would probably occur after 
mid-December. 
 
 
Other FTA Issues:  Successes and Labor Chapter 
--------------------------------------------- - 
 
¶6. (SBU) Furche expressed an interest in working with AmCham to 
develop an information folio on the FTA's successes in Chile.  Free 
trade with the U.S. had played an important role in assisting 
Chile's economic development.  The U.S. was the number one 
destination for small- to medium-sized Chilean exporters. 
 
¶7. (SBU) The Ambassador asked about the status of the labor chapter 
of the FTA.  Nazal explained representatives from the U.S. 
Department of Labor and Chilean Ministry of Labor had recently met 
in Geneva.  They had discussed arrangements to facilitate greater 
cooperation between the USG and GOC on labor issues.  Further 
follow-up was expected. 
 
APEC:  A Good Declaration, Good Meetings 
---------------------------------------- 
 
 
¶8. (SBU) Turning to APEC, the Ambassador noted the Summit had 
produced a useful Declaration.  Furche agreed calling the Summit a 
success.  He noted there had been significant uncertainty during the 
Summit over the news of Citibank's financial problems.  Furche 
characterized the bilateral between Secretary Rice and FM Foxley as 
a "great" meeting and was equally pleased with the results of his 
meeting with Ambassador Schwab. 
 
Pathways Ministerial:  We'll Be There 
------------------------------------- 
 
¶9. (SBU) Furche said either he or FM Foxley would attend the 
Pathways Ministerial in Panama on December 10.  Foxley and Secretary 
Rice had an excellent relationship.  Given her personal appeal for 
Chile's participation in the Ministerial, Furche thought Foxley 
would find it hard not to attend.  Furche cited one possible 
conflict.  Trade ministers were organizing for a possible WTO 
Ministerial in Geneva to try to restart the Doha Round around the 
time of the Pathways Ministerial.  However, Furche assured the 
Ambassador the GOC would be at the Panama meeting. 
 
Trans-Pacific Partnership: Interest Growing 
------------------------------------------- 
 
¶10. (SBU) Furche reported that during the APEC Summit, members of 
the Trans-Pacific Partnership (P-4) had reaffirmed their intent to 
expand to seven members (to include Australia, Peru, the U.S., and 
possibly Vietnam).  Chile was delighted with this development. 
Other countries were also expressing interest in the P-4, including 
Canada (though this might be tempered by concerns from their dairy 
industry). 
SIMONS