VZCZCXYZ0007
RR RUEHWEB

DE RUEHC #4124 2242217
ZNR UUUUU ZZH
R 122200Z AUG 09
FM SECSTATE WASHDC
TO RUEHNT/AMEMBASSY TASHKENT 0000
INFO RUEHRC/AGRICULTURE DEPT WASHINGTON DC 0000
RUEATRS/TREASURY DEPT WASHINGTON DC 0000
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS STATE 084124 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAGR ELAB ECON PHUM UZ ETRD
SUBJECT: UZBEKISTAN GSP INTERIM DEMARCHE REQUEST 
 
¶1. This is an action request; Please see paragraph 7. 
 
¶2. Summary.  As part of the USG's review of Uzbekistan's 
eligibility for benefits under the Generalized System of 
Preferences (GSP), Post is requested to meet Government of 
Uzbekistan officials at the highest appropriate level to call 
attention to the need to address the issue of child labor in 
the cotton industry and to request that Uzbekistan invite the 
International Labour Organization (ILO) to undertake a 
mission to assess child labor in the 2009 cotton harvest. 
Post is further requested to stress that the invitation 
should be made as early as possible to allow the ILO to plan 
and execute its assessment.  The USG expects to discuss the 
progress of the ILO assessment and other steps taken by the 
Government of Uzbekistan during the October Trade and 
Investment Framework Agreement (TIFA).  End Summary. 
 
---------- 
BACKGROUND 
---------- 
 
¶3. In 2008, Uzbekistan exported over USD 3 million in 
products duty-free to the United States under the GSP 
program.  The USG is reviewing two petitions regarding 
Uzbekistan under the GSP program.  A 1999 petition from the 
International Intellectual Property Alliance (IIPA) alleges 
Uzbekistan has failed to protect intellectual property 
rights.  A 2007 petition form the International Labor Rights 
Forum (ILRF) alleges Uzbekistan fails to protect 
internationally recognized worker rights, in particular with 
respect to child labor in the cotton industry.  The GSP 
program is designed to promote economic growth in developing 
countries, and provides preferential duty-free entry for more 
than 4,650 products from 131 designated beneficiary countries 
and territories.  The GSP program was launched in 1976 for a 
10-year period and is renewed periodically, most recently in 
2008, when it was reauthorized through 2009.  Under the 
mandatory GSP eligibility criteria the President shall not 
designate a country as a GSP beneficiary if the country: 1) 
"Has not taken or is not taking steps to afford 
internationally recognized worker rights to workers in the 
country...." or 2) "Has not implemented its commitments to 
eliminate the worst forms of child labor." 
 
¶4. The interagency GSP Subcommittee of the Trade Policy Staff 
Committee (TPSC) reviews all accepted GSP petitions and 
submits its recommendations to the TPSC policy-level 
officials for decision.  The GSP Subcommittee is chaired by 
USTR and is comprised of representatives from State, 
Treasury, Commerce, Labor, Agriculture, USAID, and USITC. 
Based on a country's inaction or action, the Subcommittee may 
recommend that the review remain open to continue to engage 
with a country, be closed based on steps taken, or suspended 
if little or no progress has been made.  One of the aims of 
the petition review process is to encourage action by the GSP 
beneficiary government to address the issues identified in 
the petition.  The review process is not intended to move 
directly to punitive action, such as suspension of GSP 
benefits.  The GSP Subcommittee makes every effort through 
engagement with the beneficiary country, including demarche 
requests, to resolve issues in a positive way.  Host 
governments should understand that, under the GSP statute, 
failure to address issues of concern could lead to a loss of 
GSP benefits. 
 
¶5. In April 2007, the USG extended review of the petition by 
IIPA, and included GSP-related instructions to Post in the 
2007 Special 301 demarche requesting Uzbekistan take the step 
of removing its reservation to the Berne Convention as an 
interim step.  Uzbekistan has subsequently made clear that it 
does not intend to lift this reservation.  The ILRF, in the 
petition to review worker rights, alleged that Uzbekistan has 
failed to protect workers from compulsory labor.  The ILRF 
also criticized Uzbekistan for failing to eliminate the worst 
forms of child labor.  In April 2008, the USG extended review 
of the petitions for another year, and included GSP-related 
instructions to Post to underscore the continued USG review 
of the petitions. 
 
¶6. The USG in previous demarches suggested several specific 
steps that, if taken by Uzbekistan, would help to address USG 
concerns over worker rights and the adequate protection of 
intellectual property rights.  The GSP Subcommittee is 
concerned that little progress has been made in the suggested 
areas.  In particular, the USG has emphasized the need to 
draw on assistance and advice from the International Labour 
Organization (ILO).  The Subcommittee believes that a mission 
from the ILO to assess the level of forced child labor in the 
harvest could assist Uzbekistan in addressing the worker 
rights concerns raised in the ILRF's petition. 
 
-------------- 
ACTION REQUEST 
-------------- 
 
¶7. At the earliest convenience, Post is requested to deliver 
the following talking points to Uzbekistan government 
officials at the highest appropriate level: 
 
-- As you are aware, the GSP statute provides factors that 
the President must take into account in designating a country 
as eligible for the GSP.  These factors include the extent to 
which the country is providing adequate and effective 
protection of intellectual property rights and whether or not 
the country has taken or is taking steps to afford workers 
internationally recognized worker rights. 
 
-- GSP preferences are conditioned on mandatory statutory 
requirements, and forced child labor is defined under the law 
as a particularly egregious violation of rights.  Under the 
GSP statute, a country that has not or is not taking steps to 
afford workers internationally recognized worker rights shall 
not be designated as eligible for GSP benefits. 
 
-- In 2007, a petition from the International Labor Rights 
Forum (ILRF) was submitted to the USG that alleges 
Uzbekistan's failure to protect internationally recognized 
worker rights, in particular with respect to child labor in 
the cotton industry.  There is another petition, dating to 
1999, which alleges Uzbekistan's failure to protect 
intellectual property rights adequately.  The USG is 
obligated by law to respond to such petitions. 
 
-- We urge your government to demonstrate progress in 
addressing outstanding concerns raised by both petitions 
regarding Uzbekistan's eligibility of GSP benefits.  We note 
that your government has begun engagement with appropriate UN 
agencies on the child labor issue and has expressed interest 
in raising its level of expertise on Intellectual Property 
Rights protection.  Given that fall harvest time is nearing, 
the most immediate concern is the mobilization of child labor 
for this fall's cotton harvest. 
 
-- As part of our continued review of the petitions, we 
urgently request your government invite the International 
Labour Organization to undertake a mission to assess child 
labor in the 2009 cotton harvest. 
 
-- This invitation should be made as quickly as possible and 
with enough notice to ensure the ILO can plan and execute an 
assessment in the 2009 harvest season. 
 
-- The invitation and execution of the ILO assessment would 
be seen by the GSP Subcommittee as a favorable step towards 
the affirmation of Uzbekistan's GSP benefit eligibility. 
 
-- We look forward to discussing with Uzbekistan the progress 
of the ILO assessment of the 2009 cotton harvest, 
intellectual property rights, an the other issues raised in 
the petitions, during the Trade and Investment Framework 
Agreement (TIFA) meeting with Uzbekistan in early October 
¶2009. 
 
-- We must inform the GSP Subcommittee of progress made by 
September 1, 2009. 
 
-- In concluding the 2008 GSP Country Practice review, the 
GSP Subcommittee will also be reviewing Uzbekistan's efforts 
on this and other actions to combat child labor. 
 
-- We will announce the outcome of the pending GSP Review of 
Country Practices for Uzbekistan at a later date. 
 
¶8. Post is requested to report the results of the effort by 
cable or email immediately following delivery. 
 
¶9. Post is also requested to follow-up on this request of 
Uzbekistan and report on the status of the invitation and/or 
progress of the assessment mission by September 1, 2009, to 
the GSP Subcommittee. 
CLINTON