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 unacceptably high in these countries.

The United States is committed to a policy of promoting increased intellectual property protection. In this regard we are making progress in advancing the protection of these rights through a variety of mechanisms, including through the negotiation of free trade agreements. As part of the negotiations with Chile and Singapore, as well as in the hemispheric Free Trade Area of the Americas, we are seeking higher levels of intellectual property protection in a number of areas covered by the TRIPS Agreement. These negotiations, as well as any other negotiations that USTR may undertake in the course of this year, give us the opportunity to build upon the standards in the TRIPS Agreement to reflect the technological changes that have occurred since the late 1980s and early 1990s.

USTR will continue to use all statutory tools, as appropriate, to improve intellectual property protection in such countries where it is inadequate, such as Ukraine, Russia, Brazil, the Dominican Republic, and Turkey including through implementation of the Generalized System of Preferences and other trade preference programs.

Internet Piracy and the WIPO Copyright Treaties

Throughout the world, countries have begun to recognize the importance of the Internet as a vehicle for economic expansion. However, despite the promise that the Internet holds for innovative and creative industries, it is also creates significant challenges, as it serves as an extremely efficient global distribution network for pirate products. We are currently working with other governments, as well as consulting with U.S. industry, to develop the best strategy to address Internet piracy.

An important first step in the fight against Internet piracy was achieved at the World Intellectual Property Organization (WIPO), when it concluded two copyright treaties in 1996; the WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT), referred to as the WIPO Internet Treaties. These Treaties help raise the minimum standards of intellectual property protection around the world, particularly with respect to Internet-based delivery of copyrighted works.

These Treaties represent the consensus view of the world community that the vital framework of protection under existing treaties, including the TRIPS Agreement, should be supplemented to eliminate any remaining gaps in copyright protection on the Internet that could impede the development of electronic commerce.

In order to realize the enormous potential of the Internet, a growing number of countries are implementing the WIPO Internet Treaties and creating a legal environment conducive to investment and growth in Internet-related businesses and technologies. In the competition for foreign direct investment, these countries now hold a decided advantage. We urge other governments to ratify and implement the two WIPO Internet Treaties, which clarify exclusive rights in the on-line environment and specifically