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April 27, 2006
Globes, Israel Business Arena
by Ran Dagoni
The Bush administration will apparently decide not to place Israel in the most severe category of countries accused of systematically violating intellectual property rights. Sources in Washington believe that the annual "Special 301 Report" by the Office of the US Trade Representatives (USTR), due to be published on Friday, will include Israel in the second most severe classification. This is a bitter victory for Israel.
The USTR decision will be a blow to Pharmaceutical Research and Manufacturers of America (PhRMA), the US pharmaceutical industry lobby, which has long been pressuring the Bush administration to punish Israel for what it calls the lack of adequate protection of their intellectual property rights on ethical drugs. This year, PhRMA escalated its struggle, and called on the US administration to block Israel's entry into the Organization of Economic Cooperation and Development (OECD).
As noted above, the decision is bitter victory for Israel. Although Israel will not be placed on the Priority Foreign Country" list, the most severe classification which in 2005 included only Ukraine, the USTR will place Israel on its priority watch list, the second most severe classification.
Official Israeli sources said Israel should not be included in the USTR's priority watch list, because of what they called substantial progress in legislation and in the motivation for strengthening intellectual property rights, including those of international pharmaceutical companies.
Countries with a record of much more severe breaches of intellectual property than those attributed to Israel, are not included in these lists, Israel Embassy in Washington DC Minister for Economic Affairs Ron Dermer told ''Globes'' in early April.
Israel Ambassador to the US Daniel Ayalon, Embassy of Israel in Washington minister and deputy chief of mission Jeremy Issacharoff and Dermer recently met Deputy US Trade Representative Susan Schwab, to discuss Israel's position. Last week, Schwab was promoted to replace US Trade Representative Rob Portman, who has been appointed White House Budget Director. Schwab's appointment is subject to Senate approval.
The Israeli representatives believe that Schwab listened to their arguments. This year, Israel will reportedly intensify its struggle against PHrMA directly, as well as against the decision-making process at the USTR, which Israel believes is not sufficiently transparent. Israel wants to be removed entirely from all USTR blacklists.
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