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DISPUTE SETTLEMENT BODY OF THE WTO STATEMENT BY JUAN ANTONIO FERNÁNDEZ PALACIOS, AMBASSADOR OF THE REPUBLIC OF CUBA, ON SECTION 211
GENEVA, 26 OCTOBER 2006



Unofficial translation

Mr. Chairman,

After more than 4 years, during which this Body has examined month after month the implementation of recommendations and rulings in this dispute, it is shameful that the United States of America (U.S.) still presents status reports like the one we just listened, which suggests that there is not even the slightest chance that the offender will reach a satisfactory solution.

Repeated denunciations of non-compliance, exhortations and systemic concerns expressed by some Members are ignored by the U.S., showing a complete disregard for the interests of Members.

The European Communities denounced at the last DSB meeting the evident politicization of the recent decision of the U.S. Patent and Trademark Office of denying an application to renew the Havana Club brand presented by its owner, the Cuban company CUBAEXPORT.

The federal entity followed instructions from the Office of Foreign Assets Control (OFAC) of the U.S. Department of Treasury, which had previously denied the application for a specific licence presented by CUBAEXPORT that would have allowed the renewal of the Havana Club brand, on grounds that the granting of such a license was inconsistent with the U.S. government “policy”. With this conduct, once again the decisions adopted by U.S. State agencies and institutions are contrary to the country’s legislation and the international agreements to which the U.S. government is a party.

Not only political interests lie behind this decision but even pettier interests: those of the Bacardi company in owning the prestigious and internationally recognized Havana Club brand and in trying to eliminate its competitors in a dishonest and unscrupulous way. With this aim in mind, it has spare no effort or money.

The company has spent large sums of money on lobbying and donating generous sums to the Republican Party, including current Senator Mel Martínez, who has been accused by a political corruption watchdog group called Citizens for Responsibility and Ethics in Washington (CREW) of having accepted more than $60,000 from the Bacardi company.

This is how the rum company ensured that, in October 1998, the U.S. Congress adopted the insertion of a clause in the Federal Budget Bill: Section 211 – also known as the Bacardi Law – which has been declared incompatible with WTO rules.

This is also how the company ensured that the U.S. Patent and Trademark Office denied the application to renew the Havana Club trademark to its legitimate owner, so that it could able to announce last August 8 that it would once again bring a Havana Club rum onto the U.S. market.

It is shameful to see how the U.S. government can benefit individual interests and put the interests of hundreds of US businesspersons who own commercial brands registered in Cuba at risk.

Section 211 could set a precedent for other governments to enact laws inspired in it, violating the Paris Convention, the TRIPS Agreement and other international rules in this field and moving away from the classic doctrine on which these Agreements have been based. Consequently, this would nullify or diminish the legitimate rights of the affected Members.

Mr. Chairman, among the bills that have been presented in the Senate and the House of Representatives of the U.S., there is a bipartisan bill endorsed by several senators that would invalidate Section 211 and also reflects the general feeling of the U.S. business sector, which believes that the disrespect for trademark rights is a huge heresy.

Cuba reiterates its call to take prompt and effective action to enforce the WTO Agreements before it is too late, and considers that the only possible solution is the abolishment of Section 211, while demands that the U.S. implements immediately and unconditionally the rulings and recommendations adopted by this Body.

Thank you very much.

 


 

 

 


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