VZCZCXYZ0012
PP RUEHWEB

DE RUEHSM #0666/01 2961322
ZNR UUUUU ZZH (CCY AD00CA76AB/MSI5305 510)
P 231322Z OCT 09 ZDS
FM AMEMBASSY STOCKHOLM
TO SECSTATE WASHDC PRIORITY 4816
INFO EU MEMBER STATES COLLECTIVE
USMISSION GENEVA

UNCLAS STOCKHOLM 000666 
 
C O R R E C T E D  C O P Y (ADDING ADDR) 
 
SIPDIS 
 
DEPT PLEASE PASS TO USTR FOR TANUJA GARDE AND DAWN SHACKLEFORD 
 
SENSITIVE ENTIRE TEXT 
E.O. 12958: N/A 
TAGS: ETRD PREL EU SW
SUBJECT: DISCUSSED CONCERN OVER EC/SWISS POSITIONS ON GEOGRAPHICAL 
INDICATIONS WITH SWEDISH TRADE DIRECTOR 
 
Ref: STATE 104985 
 
¶1.  (SBU)  Summary:  The GOS has come to the conclusion that the 
Geographical Indications issue (GIs) is hugely important to some 
five EU Member States; it is perhaps the primary Doha issue for some 
MS.  The GOS determination is that it can "stomach it", as a 
necessary component of an EU-wide compromise.  Trade policy Director 
Ambassador Teppo Tauriainen urged the USG to be creative in helping 
the Commission to find a compromise solution on GI's.  In the view 
of the EC, this is not a large stumbling block.  On a positive note, 
the GOS feels that the EU as a whole is more positive to a Doha deal 
than it was in 2008, partly due to the effects of the financial 
crisis.  End summary. 
 
GI's 
---- 
 
¶2.  (SBU)  On October 22, we met with Ambassador Teppo Tauriainen, 
Director of MFA's Division for International Trade policy.  He was 
sympathetic to our concerns and explained that Sweden is not pushing 
the issue of GIs but that the issue is very important to some 4-5 EU 
member states (France, Italy, Greece, Spain, and Portugal). 
However, his assessment is that a Doha deal needs to offer something 
on the GI issue, otherwise 4-5 Member states will refuse to sign on. 
 In a negotiation, you need to give them something (although Sweden 
would be happy with "nothing," but it will not work, in Tauriainen's 
opinion).  Tauriainen urged the USG to be creative in helping the 
Commission to find a compromise solution on GI's. 
 
¶3.  (SBU)  Sweden was pleased with the developments in the G8, G20, 
and the Delhi meeting this summer, feeling that momentum was gained. 
 However, since then, the GOS has been disappointed to see that not 
much has resulted in Geneva.  At this rate, it is not really 
realistic to conclude by 2010.  Ambassador Tauriainen said he hopes 
to see the EU urge the U.S. to actively engage -- together with the 
EU. 
 
¶4.  (SBU)  The EC is trying to down-play the importance of the GI 
issue, and instead focus on potential gains in market access -- in 
NAMA and Agriculture.  There is a difference in views about what is 
on the table, according to Tauriainen.  Currently, the EU is more 
positive than the U.S.  Sweden is very positive about the systemic 
effects of a concluded round, and feels that a concluded Doha round 
would be a very important contribution to economic recovery. 
 
¶5.  (SBU)  The level of expectations has changed over the last year, 
with the effects of the financial crisis.  In the Swedish view, to 
lock down commitments, given the difference between bound and 
implemented levels of tariffs, would be an improvement over where we 
are today.  Sweden and the EU are afraid that there will be a roll- 
back of the implemented levels to the bound levels, something which 
would hurt all of our economies. 
 
Patent issues 
-----  ------ 
 
¶6.  (SBU)  Tauriainen told us that Sweden is proposing and 
supporting an alternative sanction on the disclosure requirements. 
Although sanctions would be needed for the patent disclosure, such 
sanctions could be limited to fines.  Possible sanctions would thus 
not include nullification of the patent.  This is an alternative 
that is "in the back of the minds" of all EU member states.  The 
disclosure proposal tabled in WIPO in 2005 is the bottom-line for 
what EU Member states can accept, according to Tauriainen. 
 
¶7.  (SBU)  Tauriainen said that Sweden, like the U.S., is not keen 
on compromising patent rights.  Therefore, Sweden is focusing on 
trying to find alternative solutions that would prevent us from 
compromising patents.  This is also a central issue in the climate 
negotiations. 
 
¶8.  (SBU)  According to Tauriainen, it is important to many 
developing countries to establish compulsory licensing and create 
more transparency.  Sweden is focusing on alternative means of 
facilitating technology transfers, which they believe is the 
developing countries' main goal.  Our Swedish interlocutors warn 
that if we do not listen to developing countries we risk a clash. 
Sweden is trying to find a way to avoid a clash without undermining 
IPR.  Sweden expressly mentions that they have no intention of 
undermining patent rights. 
 
Multilateralism vs. bilateral negotiations 
--------  -------  ---------  ------------ 
 
¶9.  (SBU)  We discussed U.S. efforts to push for market access via 
bilateral talks.  Tauriainen responded that Sweden believes in 
multilateral agreements, but to reach multilateral agreements it is 
necessary to take advantage of bilateral talks.  Tauriainen said he 
does not see a conflict -- it is really the same thing.  Although 
 
China says they want no bilateral talks, Sweden believes that the 
Chinese are in reality prepared to talk one on one.  Multilaterals 
would otherwise not be possible, you cannot have 153 states talking 
to each other at once. 
 
BARZUN