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PP RUEHCHI RUEHFK RUEHHM RUEHKSO RUEHPB
DE RUEHKO #3567/01 1790623
ZNR UUUUU ZZH
P 280623Z JUN 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3745
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION PRIORITY
RUCNMEU/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHKSO/AMCONSUL SAPPORO PRIORITY 8101
RUEHNAG/AMCONSUL NAGOYA PRIORITY 6854
RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 0226
RUEHFK/AMCONSUL FUKUOKA PRIORITY 6950
RUEHNH/AMCONSUL NAHA PRIORITY 9560
RUEHGV/USMISSION GENEVA 2884

UNCLAS SECTION 01 OF 02 TOKYO 003567  

SIPDIS  

SIPDIS  

STATE FOR EAP/J, EAP/EP, EB/TPP/IPE. 
STATE EAP/J PLEASE PASS TO IPR OFFICE, JAPAN OFFICE
COMMERCE For National Coordinator For IPR Enforcement CIsrael 

E.O. 12958: N/A 

TAGS: KIPR ETRD ECON JP

SUBJECT: Japan Backs Anti-Counterfeiting Trade Agreement Proposal  TOKYO 00003567  001.2 OF 002   

¶1.  Summary: (SBU) Japanese Trade and Foreign Ministry officials expressed unanimous support for USTR's proposal to revise the objectives of Japan's efforts to promote a global framework on preventing proliferation of counterfeit and pirated goods by seeking a high-standards Anti-Counterfeiting Trade Agreement among a select group of like-minded countries.  The Japanese side would like to learn more about what exactly the United States wants to include in the agreement and which standards the U.S. considers essential. End Summary 

 ---------- Background ---------  

¶2.   (SBU) USTR's Chief Negotiator for IPR Enforcement, Stanford McCoy met with officials of the Ministry of Foreign Affairs (MOFA) and METI (Ministry of Economy, Trade and Industry) and the Intellectual Property Strategy Headquarters (IPSH) in Tokyo on June 13 and June 14.   In each meeting McCoy explained USTR's concept of a plurilateral, TRIPS-plus Anti-Counterfeiting Trade Agreement (ACTA) which would aim to set a ""gold standard"" for IPR enforcement among a small number of like-minded countries, and which other countries might aspire to join.  McCoy stressed that this should be a freestanding agreement, not related to any international grouping such as the G-8 or OECD, which might make it more difficult to construct a high-standards agreement.  McCoy pointed out that the United States has garnered a lot of experience negotiating high-standards IPR agreements (aside from the enforcement elements) as part of the Free Trade Agreements it has negotiated in recent years.  Potential partners in the agreement could include Australia, Singapore, Korea, New Zealand, Switzerland, Morocco, Jordan, EU countries, Mexico and Canada.  McCoy's discussions with the same officials on a possible WTO case against China on IPR will be reported separately.  

------------------------------------------ 
GOJ welcomes Anti-Counterfeiting Agreement ------------------------------------------  

¶3.  (SBU) Japanese officials were unanimously enthusiastic in their support for USTR's proposed Anti-Counterfeiting agreement.  They were surprised, but happy that the United States had responded with a strong counter-proposal.  (Japanese officials admitted in the meetings that, up to now, only France had responded with enthusiasm to their earlier anti-counterfeiting treaty idea.)  They promised to study the proposal further and send questions via the Japanese Embassy in Washington.  Tadaatsu Mohri, Principal Deputy Director of MOFA's International Trade Division, said the GOJ had wanted to continue to raise the issue within the G-8 where Prime Minister Koizumi had proposed it, but was willing to listen to U.S. arguments about why it should be a freestanding agreement.  Japanese officials had hoped to use the expertise of the OECD staff to help them in drafting and negotiating an anti-counterfeiting treaty, but seemed reassured when McCoy assured them that USTR probably had sufficient expertise in the area that it was not necessary to enlist the OECD or another international organization.  

¶4.  (SBU) MOFA, METI, and IPSH officials all wanted to know more about what standards and core concepts the USG considered essential to the proposed agreement.  IPSH Secretary General Arai asked for USTR to provide a draft agreement or at least a copy of the IPR section of recently negotiated FTAs.  McCoy agreed that the United States and Japan should discuss this further and reach a mutual understanding on the key elements, based upon which they could approach other governments.  McCoy reminded GOJ officials that Japan would need to continue its leadership role with respect to this agreement, with the United States as its partner, and that Japanese officials would need to do much diplomatic legwork.  

¶5.  (SBU) Several Japanese officials wondered about a timetable for negotiating the agreement.  IPSH Secretary-General Arai proposed that the United States and Japan should set a goal of negotiating an agreement within one year, and coming into effect one year later. Arai cautioned that it would be a shame if the like-minded countries were to become bogged down arguing amongst themselves about what should be included -- that would only provide amusement for the counterfeiters without improving the situation.  For that reason, he advised that the USG should concentrate on a set of TRIP-plus standards on which there is already some consensus.   Arai also  TOKYO 00003567  002.2 OF 002   hoped the U.S. and EU would not become embroiled in side issues, such as geographical indications.  

------- Comment -------  

¶6. (SBU) Japanese officials seemed genuinely delighted and surprised to have received USTR's well-thought out counter-proposal, but seemed uncertain about how to move ahead.  Apparently GOJ officials had hoped to rely on the expertise of the OECD to help them draft a treaty and had to be reminded several times that the United States expected Japan to take the lead jointly with the United States in sharing the proposal with other countries.  

¶7.  (U) This cable has been cleared by USTR Chief Negotiator for IPR Enforcement Stanford McCoy.  DONOVAN ",6/28/2006,Japan Backs Anti-Counterfeiting Trade Agreement Proposal  TOKYO 00003567  001.2 OF 002   1.,(SBU) Japanese Trade and Foreign Ministry officials expressed unanimous support for USTR's proposal to revise the objectives of Japan's efforts to promote a global framework on preventing proliferation of counterfeit and pirated goods by seeking a high-standards Anti-Counterfeiting Trade Agreement among a select group of like-minded countries.  The Japanese side would like to learn more about what exactly the United States wants to include in the agreement and which standards the U.S. considers essential.