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 On-going WTO TRIPS Cases

Over the past year, significant results have been achieved in several of the dispute settlement cases previously announced by Ambassador Barshefsky. In 1997, Ambassador Barshefsky announced cases against Sweden, Ireland and Denmark. Sweden has now committed to amend its law to provide provisional relief in civil enforcement proceedings, and Ireland has committed to accelerate its work on a new copyright law and to pass expedited legislation addressing two pressing enforcement issues. The United States welcomes these actions by our trading partners to move toward compliance with their TRIPS obligations.

By contrast, the United States' case against Denmark has not moved quickly toward settlement. Ambassador Barshefsky stated, "We are concerned that the Government of Denmark does not appear to appreciate the importance of the availability of effective provisional measures in protecting intellectual property rights."

Other Developments in the Past Year

Ambassador Barshefsky expressed satisfaction with the recent conclusion of the United States' case against India. In December 1997, the WTO Appellate Body upheld a panel ruling in favor of the United States in this case involving patent protection for pharmaceuticals and agricultural chemicals and India's failure to provide a patent "mailbox" system. On February 13, 1998, India committed to implement the results of the dispute settlement proceedings. On April 22, 1998, India pledged to amend its law to comply with its TRIPS obligations as soon as possible, and no later than April 19, 1999.

The United States' WTO case against Turkey was also successfully resolved during the past year. In December 1997, the Government of Turkey issued regulations equalizing its tax on box office revenues for foreign and domestic films. This action could save the U.S. film industry millions of dollars in the coming year.

Under the Special 301 provisions of the Trade Act of 1974, as amended, Ambassador Barshefsky today identified 47 trading partners that deny adequate and effective protection of intellectual property or deny fair and equitable market access to United States persons that rely upon intellectual property protection. She noted IPR developments or growing concerns among an additional 17 trading partners.

In doing so, Ambassador Barshefsky noted the identification earlier this year of Paraguay as a Priority Foreign Country and again designated China for "Section 306 monitoring" to ensure that China complies with the commitments it has made to the United States in bilateral intellectual property agreements. Section 306 of the Trade Act of 1974, as amended, authorizes the USTR to