ISLAMABAD, April 4: The United States has delayed the passage of legislation for establishment of reconstruction opportunity zones (ROZs) in the economically-deprived pro-Taliban areas on both sides of Pakistan-Afghan border, Dawn has learnt.

The USTR officials had conveyed to Pakistani officials in the last meeting in Islamabad that the draft legislation would be placed before the Congress in later part of January or in the middle of February 2007.

Informed sources told Dawn that the US officials are now pushing Islamabad for an effective implementation of the intellectual property rights (IPRs) regime in the country, particularly the legislation on data protection.

The US Congress has already given a signal to the military-led government to restore full democracy in the country, besides holding fair and transparent elections, which is likely to be also linked with the passage of the draft law for establishment of the ROZs.

The US officials believe that the passage of such a data protection legislation would enable the US government to push for ROZ legislation in US Congress.

US President George W. Bush had accepted the Pakistani proposal of ROZs in his last visit to Pakistan. Mr Bush had announced that the trade zones established in the remote areas (tribal and border) would get duty-free access on goods exported to the US market.

Analysts said that ROZs are not WTO compliant as they neither fall under article 24 of the GATT, nor the enabling clause allows preferential access for developing countries in the developed countries.

The US demands from Islamabad the data exclusivity for a term of five years during which the government cannot rely on the data submitted by the originator to the regulatory authority for marketing approval in order to grant approval for subsequent generic manufacturer during this term.

This would certainly create an absolute monopoly of the multinational companies, who would exploit consumers at higher prices in Pakistani market.

While the TRIPs agreement called for data protection not data exclusivity under which the government can rely on the data as it does not constitute unfair commercial use.

If the US approach was adopted, no generic manufacturer can enter the market during this data protection period.

The draft law on data protection is under consideration of the federal cabinet, which is expected to be finalised in the current months.

According to the official, the US has also started a special review of the Pakistan IPR regime. It is expected that US may again place Pakistan on special watch list -- mean highly violating country of IPRs regime. A decision in this regard is expected any time, added the official.

The proposed law on ROZs would indicate exact location of the zones, mostly to be located in the tribal areas and products to be manufactured there for duty-free exports to US market, the official added.