[Ip-health] USTR puts Chile on Priority Watch list - citing pharma issues

[robert weissman]

Schwab Announces Results of Chile IPR Review, Cites Deteriorating
Performance

 01/08/2007

WASHINGTON - United States Trade Representative Susan C. Schwab today annou=
nced a determination to elevate Chile from "Watch List" to "Priority Watch =
List" status following a Special 301 Review that examined in detail the ade=
quacy and effectiveness of intellectual property rights (IPR) protection in=
 Chile.  This determination is the result of an "Out-of-Cycle Review" (OCR)=
 announced in the April 2006 Special 301 Report.

"Chile's importance as a U.S. trading partner continues to grow, due in no =
small part to our Free Trade Agreement," said Ambassador Schwab.  "As such,=
 our expectations for Chile's respect of intellectual property rights are q=
uite high.  This review reflects our concern that Chile is not protecting s=
ufficiently intellectual property.  Chile has a tremendous interest in impr=
oving its IPR track record, and we look forward to working with Chile to br=
ing that about."

The OCR concluded, in part, that Chile remains unwilling to address the con=
cerns of patent holders, who report that Chile has authorized the marketing=
 of patent-infringing pharmaceutical products and has failed to provide an =
appropriate and effective mechanism through which patent holders may seek t=
o prevent marketing in such cases.

The United States remains concerned, as well, by reports that Chile has rel=
ied inappropriately on undisclosed test and other data submitted in connect=
ion with the approval of innovative drug products in order to approve gener=
ic versions of these drugs.  In addition, Chile's commitment to the vigorou=
s enforcement and prosecution of intellectual property theft of copyrighted=
 goods appears to be diminishing significantly.

The OCR revealed increased rates of pirated sound recordings, software and =
films, as well as an expansion of internet-based piracy.  While some Chilea=
n government officials are attempting to address specific aspects of these =
problems, the political will and a comprehensive government strategy for re=
versing recent trends towards higher levels of infringement appear to be la=
cking.  The concerns highlighted in this OCR are further reinforced because=
 Chile is overdue in enacting legislation to implement certain intellectual=
 property-related obligations reflected in the U.S.-Chile Free Trade Agreem=
ent (FTA).

The United States will continue to seek constructive engagement with Chile =
on the issues raised in this OCR.

Background

Pursuant to Section 182 of the Trade Act of 1974, as amended by the Omnibus=
 Trade and Competitiveness Act of 1988 and the Uruguay Round Agreements Act=
 (enacted in 1994), under Special 301 provisions, USTR must identify those =
countries that deny adequate and effective protection for IPR or deny fair =
and equitable market access for persons that rely on intellectual property =
protection.  Countries that have the most onerous or egregious acts, polici=
es, or practices and whose acts, policies, or practices have the greatest a=
dverse impact (actual or potential) on the relevant U.S. products must be d=
esignated as "Priority Foreign Countries."

USTR has created a "Priority Watch List" and "Watch List" under the Special=
 301 provisions.   Placement of a trading partner on the Priority Watch Lis=
t or Watch List indicates that particular problems exist in that country wi=
th respect to IPR protection, enforcement, or market access for persons rel=
ying on intellectual property.  Countries placed on the Priority Watch List=
 are the focus of increased bilateral attention concerning the problem area=
s.