VZCZCXRO9582
PP RUEHTRO
DE RUEHAS #0228/01 0631724
ZNR UUUUU ZZH
P 041724Z MAR 09
FM AMEMBASSY ALGIERS
TO RUEHC/SECSTATE WASHDC PRIORITY 7157
INFO RUEHNK/AMEMBASSY NOUAKCHOTT 6692
RUEHFR/AMEMBASSY PARIS 3073
RUEHRB/AMEMBASSY RABAT 2700
RUEHTRO/AMEMBASSY TRIPOLI
RUEHTU/AMEMBASSY TUNIS 7563
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 02 ALGIERS 000228 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EEB/TPP/IPE (MCGOWAN) 
STATE PASS TO USTR (GROVES AND BURKHEAD) 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KPIR AG
SUBJECT: ALGERIA 2009 SPECIAL 301 REPORT 
 
REF: A. ALGIERS 30 
     ¶B. 08 ALGIERS 208 
     ¶C. ALGIERS 223 
     ¶D. ALGIERS 164 
 
¶1. (SBU) SUMMARY:  Algeria's IPR posture remained generally 
static in 2008, and took a marked turn for the worse in 
regard to pharmaceutical market access with the imposition of 
a ban on imported pharmaceutical products that are produced 
domestically (ref A).  Furthermore, it has become clear that 
WTO accession is not a near-term priority for Algeria, 
meaning that accession talks no longer offer the leverage 
that many had hoped as means to encourage Algeria to tighten 
its IPR regime.  We saw no appreciable improvement in 
fighting optical piracy, but we feel that particular Algerian 
agencies, notably Customs and the Ministry of Justice, do 
want to stop the flow of counterfeit goods into Algeria if 
only for health and safety reasons.  Even with the country's 
recent imposition of certain protectionist policies, we 
recommend that Algeria stay listed on the Watch List, as we 
are on the verge of engaging in cooperative agreements and 
programs that may generate greater attention to IPR 
enforcement, although these efforts will have little or no 
impact on the government's position favoring generic 
pharmaceuticals.  END SUMMARY. 
 
ALGERIA'S PAST LEGAL EFFORTS 
---------------------------- 
 
¶2. (SBU) As we reported last year (ref B), Algeria has 
developed a legislative framework for IPR protection, even if 
enforcement efforts remain sporadic.  Algeria made 
legislative progress toward IPR protection with the 2003 
adoption of modernized IPR laws and subsequent reinforcing 
legislation in 2004 to comply with the TRIPs agreement as 
part of Algeria's WTO accession process.  In 2005, the 
Algerian government adopted new implementing regulations 
related to copyrights, patents, trademarks and integrated 
circuits.  Algeria is also a signatory to several 
international agreements such as the Bern and Paris 
Conventions.  Pharmaceutical companies note, however, that 
Algerian law does not explicitly protect data exclusivity. 
While the legislative base is relatively strong, 
implementation and enforcement of these laws have not 
translated into widespread, systematic practice. 
 
NEW HIGH: COUNTERFEIT SEIZURES 
------------------------------ 
 
¶3. (SBU) Customs and Ministry of Justice officials do seem 
sincere when they tell us that they are committed to 
combating counterfeit products.  Commercial law attorneys 
representing U.S.-based and other foreign firms also told us 
in 2008 that cooperation is good with Algerian government 
agencies and the courts regarding the seizure of imported 
counterfeit products.  According to data released by Algerian 
Customs, 1.5 million counterfeit items worth 150 million 
dinars were seized in 2008, compared to 2.27 million items 
worth 100 million dinars in 2007.  Of the items seized, 86 
percent were cosmetic products, with automotive spare parts 
and electrical appliances making up two of the next largest 
categories of seized items.  Customs claimed that 70 percent 
of the counterfeit products were made in China, with 38 
percent of them shipped directly from China.  Algerian 
Customs concluded counterfeit product and illegal trade 
agreements in 2008 with several international companies 
including Unilever, Phillip Morris International and Nestle. 
We have concluded negotiations on a Customs Mutual Assistance 
Agreement (CMAA) with Algeria, and hope to see it signed in 
the first half of 2009. 
 
NEW LOW: PHARMACEUTICAL BAN 
--------------------------- 
 
¶4. (SBU) Algeria's imposition of a ban on imported 
pharmaceutical products that are produced in Algeria (ref A) 
completely changes the way in which we assess Algeria's 
commitment to IPR issues.  At one point in mid-2008, at least 
one U.S.-based pharmaceutical company told us that it had 
been mostly satisfied with both the legal framework and 
enforcement of patents and trademarks in Algeria, and was 
instead focused on fighting the ongoing issue of reference 
 
ALGIERS 00000228  002 OF 002 
 
 
pricing according to lowest-cost generics (ref B).  Another 
company was, however, facing a patent threat from several 
generics allowed to be marketed in the same dosage as the 
patent.  The pharmaceutical ban may be seen as a Special 301 
IPR issue as a barrier to market access for those relying on 
intellectual property protection because it specifically 
targets non-generics and, until the ban, some 65 percent of 
the Algerian pharmaceutical demand had been met by imports. 
With this ban in place, other IPR issues in this domain, such 
as reference pricing, patent protection and data exclusivity, 
have become essentially moot.  Ministry of Health officials 
have made no apology for the ban, insisting in late 2008 that 
the ban is not open for discussion in WTO accession 
negotiations (ref A), and informing us in February 2009 that 
the ministry's priorities in terms of medications are 
quality, price and access for the greatest number of 
Algerians. 
 
WTO ACCESSION NO LONGER OFFERS LEVERAGE 
--------------------------------------- 
 
¶5. (SBU) In the past, we and industry representatives have 
relied on the notion that WTO accession talks were the best 
venue to address Algeria's weak IPR enforcement regime. 
However, it is increasingly clear that Algeria does not feel 
WTO accession will occur in the near term, and talks over the 
last 24 months offered little progress on accession itself or 
on IPR issues.  Our new MFA desk officer transferred to 
Algiers in February from Geneva, where he was responsible for 
the WTO portfollio.  He acknowledged that WTO progress had 
flatlined for "about a year" and was not optimistic that the 
accession process would accelerate in the immediate future. 
While Algeria's legal changes since 2003 regarding TRIPS 
compliance and other mechanisms were sparked by WTO talks, we 
see no indication that ongoing, sporadic negotiations will 
provide the leverage that many observers once hoped for to 
press Algeria further regarding IPR enforcement. 
 
PIRACY EFFORTS REMAIN STATIC 
---------------------------- 
 
¶6. (SBU) We saw no noticeable improvement in combating 
optical or software piracy in 2008, and pirated versions of 
movies are widely available for sale not only in markets and 
small storefronts, but in European-based grocery chains as 
well. 
 
COMMENT: WATCH LIST RECOMMENDED 
------------------------------- 
 
¶7. (SBU) The recent ban on pharmaceutical imports and the 
lack of progress on WTO accession talks justify Algeria's 
continued listing on the Watch List.  It has been only one 
year since Algeria was first placed on the Watch List, and we 
hope that the signing of the CMAA and possible progress on 
cooperative efforts pursuant to our bilateral Science and 
Technology Agreement (ref C) will be vehicles for progress on 
IPR enforcement in 2009 outside the domain of 
pharmaceuticals.  We had several fruitful discussions in 2008 
and early 2009 with officials in Algerians Customs and the 
copyright and trademark offices regarding efforts to step-up 
counterfeit detection and interdiction, and several Algerian 
officials took advantage of U.S.-sponsored IPR training in 
¶2008.  In addition, the Algerian government has made a series 
of sometimes conflicting policy pronouncements regarding the 
overall foreign investment climate in Algeria (ref D).  We 
expect more clarity in the second-half of 2009 (in the 
aftermath of the April 9 presidential elections) in this 
regard.  Accordingly, we recommend that Algeria remain listed 
on the Watch List as we continue to engage the government. 
PEARCE