BIOTECH: SUGGESTION FOR GETTING ITALY'S ATTENTION

UNCLAS SECTION 01 OF 02 ROME 001405

SIPDIS

SENSITIVE

EB/TPP/ATT FOR PEREZ, EUR/ERA. E FOR SHUB
STATE PASS USTR FOR NOVELLI
USDA FOR FAS/OA/TERPSTRA AND SLUTSKY
USDA FOR ITP/SHEIKH AND MACKE
UNCLASSIFIED

PAGE 02 ROME 01405 01 OF 02 191803Z

E.O. 12958: N/A
TAGS: EAGR ETRD IT ETRD IT WTOEAGR WTO
SUBJECT: BIOTECH: SUGGESTION FOR GETTING ITALY'S ATTENTION



1. (SBU) SUMMARY AND ACTION REQUEST. POST SEES AN
OPPORTUNITY TO MOVE OUR AGRICULTURE BIOTECH AGENDA FORWARD BY
LINKING IT TO THE GOI HIGH-PRIORITY GEOGRAPHIC INDICATOR (GI)
AGENDA AND INVITES DEPARTMENT'S THOUGHTS ON SUCH A LINKAGE.
THE GOI REGULARLY PREACHES THAT MORE THAN 200 PRODUCTS NAMED
AFTER THEIR ITALIAN REGIONS OF ORIGIN (CHIANTI, PARMIGIANA,
ETC.) SHOULD BE PROTECTED BY PRECLUDING COMMERCIAL USE OF
THOSE NAMES ON PRODUCTS ORIGINATING ELSEWHERE. THE GOI
AGGRESSIVELY SEEKS WHATEVER LEVEL OF USG SUPPORT ON GIS IT
CAN GET IN THE CONTEXT OF THE FLEDGLING WTO SECTOR
NEGOTIATIONS. ALTHOUGH THE GOI HAS NEVER LINKED GIS AND
BIOTECH IN DISCUSSION WITH US, WE HAVE NOTICED RECENTLY A
DISTURBING TENDENCY AMONG ITALIAN ANTI-BIOTECH FORCES TO
PRESUME THAT BIOTECH CONTENT WOULD DISQUALIFY AN ITALIAN
PRODUCT FROM ELIGIBILITY FOR "TRADITIONAL PRODUCT" STATUS OR
GI PROTECTION. WE ARE EVEN MORE DISTURBED THAT THE
AGRICULTURE MINISTER AND A LARGE PORTION OF THE PARLIAMENT
SEEM TO ENDORSE THIS NOTION. POST PROPOSES TO DRAW
HIGH-LEVEL GOI ATTENTION TO THE POTENTIAL CONFLICT OF USG AND
GOI INTERESTS, ESSENTIALLY INFORMING THE ITALIANS THAT THE
USG CAN HARDLY HELP THEM CREATE A PROTECTED MARKET ONLY TO
CUT U.S. COMPANIES OUT OF IT. PARA SIX CONTAINS AN ACTION
REQUEST. END SUMMARY AND ACTION REQUEST.

THE PROBLEM: THE ITALIANS ARE GLAD-HANDING US
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PAGE 03 ROME 01405 01 OF 02 191803Z


2. (SBU) FOR SEVERAL MONTHS MISSION HAS BEEN PERPLEXED BY THE
GOI'S CONTINUED RELUCTANCE TO CONVERT PM BERLUSCONI'S
POSITIVE BUT GENERAL COMMENTS ON BIOTECH INTO SUSTAINABLE
POLICY CHANGES IN EITHER ROME OR BRUSSELS. WE CONCLUDE THAT
THE GOI -- ALTHOUGH RECOGNIZING BIOTECH'S POTENTIAL TO FOSTER
THIRD WORLD ECONOMIC DEVELOPMENT AND TO STIMULATE THE ITALIAN
ECONOMY -- REMAINS UNCONVINCED THAT BIOTECH PROMISES THE KIND
OF IMMEDIATE RETURN THAT WOULD JUSTIFY PAYING THE IMMEDIATE
POLITICAL PRICE OF ANTAGONIZING AN ITALIAN PUBLIC THAT IS
STILL VERY ANTI-BIOTECH. IN BRIEF, EVEN OSTENSIBLY
PRO-BIOTECH ITALIAN OFFICIALS HAVE LARGELY SEEN THIS AS A USG
ISSUE RATHER THAN A VISCERAL GOI CONCERN. ALTHOUGH SOME
INDIVIDUAL GOI OFFICIALS TRULY WOULD LIKE TO CHANGE BIOTECH
POLICY, THE OVERALL GOI APPROACH HAS BEEN TO PLACATE US.

THE OPENING: HELP US TO HELP YOU
-------------- --


3. (SBU) POST HAS RECENTLY SPOTTED A POTENTIAL OPENING
IRONICALLY BORN OF THE TENDENCY OF ANTI-BIOTECH FORCES HERE
TO TAKE THE PLAYING FIELD FOR GRANTED. SOME MONTHS AGO
BIOTECH OPPONENTS WITHIN PARLIAMENT INTRODUCED LEGISLATION
THAT WOULD DISQUALIFY ANY ITALIAN AGRICULTURAL PRODUCT MADE
EVEN IN PART WITH BIOTECH INPUTS FROM CONSIDERATION FOR
REGISTRATION AS "TRADITIONAL" IN VARIOUS GOI PROGRAMS. NOTE.
ON A NATIONAL LEVEL, SOME 3,000 ITALIAN PRODUCTS CARRY SOME
VARIATION OF THE "TRADITIONAL" DESIGNATION OF WHICH SLIGHTLY
MORE THAN 200 HAVE BEEN PUT FORWARD BY THE GOI FOR
INTERNATIONAL GI PROTECTION. END NOTE. SINCE NO BIOTECH
CROPS CAN BE COMMERCIALLY CULTIVATED IN ITALY ANYWAY, THE
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PAGE 04 ROME 01405 01 OF 02 191803Z
LEGISLATION WAS LITTLE NOTED IN THE PRESS, QUICKLY GATHERED
MORE THAN 200 SPONSORS IN PARLIAMENT, AND BROUGHT MINISTER OF
AGRICULTURE ALEMANNO INTO ITS FOLD. THE BILL MORE RECENTLY
SEEMS TO BE STUCK IN THE BYZANTINE WORLD OF THE ITALIAN
LEGISLATURE BUT NOT BECAUSE OF ANY OPPOSITION OF WHICH WE ARE
AWARE.


4. (SBU) IN AN OSTENSIBLY UNRELATED DEVELOPMENT, MINISTER
ALEMANNO HAS RECENTLY CIRCULATED FOR GOI AND INDUSTRY COMMENT
A DRAFT DOCUMENT ENTITLED "TRANSGENIC ORGANISMS AND
AGRICULTURE: TIME FOR CHOICES." THE 37-PAGE DRAFT DOES NOT
RENEW THE CALL TO PRECLUDE BIOTECH CONTENT FROM TRADITIONAL
ITALIAN PRODUCTS; IT SIMPLY STATES VARIOUS VERSIONS OF A
PUTATIVE AXIOM HOLDING THAT "GENETIC POLLUTION" SHOULD NOT BE
ALLOWED TO UNDERMINE THE "IMAGE IN THE WORLD HELD BY ITALIAN
AGRICULTURAL PRODUCTS." ALEMANNO, LONG AN ADVOCATE OF THE
MAINTENANCE OF A "GMO-FREE OPTION" FOR ITALIAN CONSUMERS,
CLEARLY PRESENTS IN THIS DOCUMENT A VISION OF ITALIAN
AGRICULTURE IN WHICH "TRADITIONAL" PRODUCTION FOREVER MEANS
GMO-FREE.


5. (SBU) ALEMANNO'S BIOTECH DRAFT DOES NOT MENTION ITALY'S
PURSUIT OF GI PROTECTIONS IN THE FLEDGLING WTO TALKS. THE
MINISTRY OFFICIALS WHO WORK ON BIOTECH ARE NOT THE SAME

UNCLASSIFIED

UNCLASSIFIED PTQ6107

PAGE 01 ROME 01405 02 OF 02 191803Z
ACTION EUR-00

INFO LOG-00 AID-00 AIT-03 CEA-01 CIAE-00 CTME-00 DODE-00
ITCE-00 SRPP-00 EB-00 EXME-00 E-00 UTED-00 VC-00
FRB-00 H-01 TEDE-00 INR-00 ITC-01 L-00 VCE-00
AC-01 NSAE-00 NSCE-00 OES-01 OMB-01 OPIC-01 PC-01
PM-00 ACE-00 SP-00 SSO-00 SS-00 STR-00 TEST-00
TRSE-00 USIE-00 FMP-00 PMB-00 DRL-02 G-00 SAS-00
/013W
-------------- 7788C4 191803Z /38
P 191719Z MAR 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 2837
INFO WORLD TRADE ORGANIZATION COLLECTIVE
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES
USDA FAS WASHDC 2059
USDA WASHDC
USDOC WASHDC

UNCLAS SECTION 02 OF 02 ROME 001405

SIPDIS

SENSITIVE

EB/TPP/ATT FOR PEREZ, EUR/ERA. E FOR SHUB
STATE PASS USTR FOR NOVELLI
USDA FOR FAS/OA/TERPSTRA AND SLUTSKY
USDA FOR ITP/SHEIKH AND MACKE
UNCLASSIFIED

PAGE 02 ROME 01405 02 OF 02 191803Z

E.O. 12958: N/A
TAGS: EAGR ETRD IT ETRD IT WTOEAGR WTO
SUBJECT: BIOTECH: SUGGESTION FOR GETTING ITALY'S ATTENTION

PEOPLE WHO WORK ON GI PROTECTION. DURING A MARCH 13 LUNCH,
ANGELA MILANO, A SENIOR MOA AGRICULTURE NEGOTIATOR WHO WILL
PARTICIPATE IN THE WTO AGRICULTURE TALKS IN GENEVA, REFERRED
ECONOFF TO THE OFFICE OF UNDERSECRETARY AMBROSIO TO DISCUSS
USG BIOTECH CONCERNS. ECONOFF REPLIED THAT THE EMBASSY HAS
NO PROBLEM GAINING ACCESS TO GOI OFFICIALS WORKING ON BIOTECH
BUT WONDERS WHETHER THOSE OFFICIALS REALIZE THEY MAY BE
WORKING AT CROSS-PURPOSES WITH OFFICIALS WORKING ON THE WTO
TALKS. ECONOFF EXPLAINED THAT USG SUPPORT FOR GI PROTECTION
-- ALREADY SOMEWHAT PROBLEMATIC WITH REGARD TO SOME PRODUCTS
WITH NAMES THAT ARE WELL-KNOWN IN THE U.S. MARKET AND WHICH
COINCIDENTLY DERIVE FROM FOREIGN PLACE NAMES -- COULD BE HARD
TO COME BY IF THE PRODUCTS TO BE PROTECTED WERE REQUIRED TO
BE BIOTECH FREE. ALLOWING THAT FEW PRODUCTS IN ITALY
CARRYING "TRADITIONAL" LABELS NOW CONTAIN BIOTECH INPUTS,
ECONOFF SAID THAT COULD WELL CHANGE IF AND WHEN ITALY OPENS
ITS MARKET TO BIOTECH PRODUCTS; BIOTECH MAY EVEN HELP SAVE
SOME TRADITIONAL PRODUCTS. NOTE. PRO-BIOTECH ELEMENTS HERE
OFTEN CITE, FOR EXAMPLE, THE POTENTIAL OF BIOTECHNOLOGY TO
SALVAGE THE VIRUS-BESIEGED SAN MARZANO TOMATO, A PRODUCT THAT
IS BOTH DESIGNATED AS TRADITIONAL ON THE NATIONAL LEVEL AND
PUT FORTH FOR GI PROTECTION INTERNATIONALLY. END NOTE.


6. (SBU) MILANO HAD NEVER CONSIDERED THE POTENTIAL LINK
BETWEEN HER GI WORK AND BIOTECH. NEITHER, WE CAN SAFELY SAY,
HAS MINISTER ALEMANNO. POST SUGGESTS BRINGING THE LINKAGE TO
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PAGE 03 ROME 01405 02 OF 02 191803Z
THE ATTENTION OF SELECTED SENIOR GOI OFFICIALS TO INCLUDE
ALEMANNO, DEPUTY MINISTER FOR FOREIGN TRADE URSO, SENIOR
STAFF TO PM BERLUSCONI, AND SENIOR STAFF AT ITALY'S WTO
OFFICE IN GENEVA. TO AVOID LIMITING USG OPTIONS DURING THE
WTO TALKS, WE PROPOSE TO SIMPLY RAISE THE POTENTIAL CONFLICT
RATHER THAN TO THREATEN A WITHHOLDING OF USG SUPPORT FOR
ITALY'S GI AGENDA. SUGGESTED TALKING POINTS TO BE LEFT WITH
THE GOI AS A NONPAPER FOLLOW IN PARA EIGHT. ACTION REQUEST.
GIVEN THE COMPLEXITY OF THE WTO TALKS, MISSION REQUESTS
DEPARTMENT'S ENDORSEMENT OF THIS PROPOSAL. END ACTION
REQUEST.


7. (SBU) IN ADDITION TO RAISING THE BIOTECH-GI LINK WITH
MOA'S MILANO, WE HAVE FLOATED THE IDEA WITH ASSOBIOTEC,
ITALY'S PRIMARY PRO-BIOTECH LOBBYIST. THE GROUP
ENTHUSIASTICALLY ENDORSES THE IDEA OF PRESENTING THE CONCERN
TO THE GOI AS A POTENTIALLY POWERFUL MEANS OF GAINING ITS
ATTENTION.


8. SUGGESTED TALKING POINTS

-- THE USG WOULD LIKE TO SUGGEST THAT ONE OF THE USG HIGHEST
TRADE CONCERNS HAS A POTENTIAL DIRECT CONNECTION TO ONE OF
ITALY'S PRIORITY TRADE CONCERNS.

-- I AM SPEAKING OF OUR INTEREST IN BIOTECHNOLOGY AND YOURS
IN PROTECTION FOR GEOGRAPHIC INDICATORS.

-- ALTHOUGH FEW ITALIAN PRODUCTS DEEMED "TRADITIONAL" OR PUT
FORWARD BY ITALY FOR INTERNATIONAL GI PROTECTION HAVE ANY
BIOTECH CONTENT, THAT NEED NOT ALWAYS BE THE CASE.
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PAGE 04 ROME 01405 02 OF 02 191803Z

-- AS EUROPE GENERALLY AND ITALY IN PARTICULAR BEGIN TO OPEN
THEIR MARKETS TO BIOTECH PRODUCTS, ITS EASY TO SEE THAT THOSE
PRODUCTS WILL BE PUT TO A WIDE VARIETY OF USES.

-- ITALIAN SCIENTISTS ALREADY SUGGEST THAT BIOTECH PRODUCTS
MAY NOT JUST BE INCORPORATED INTO TRADITIONAL ITALIAN
PRODUCTS BUT MAY EVEN SAVE SOME PRODUCTS, SUCH AS THE SAN
MARZANO TOMATO, FROM EXTINCTION. SOME OF THAT BIOTECHNOLOGY
WILL COME FROM ITALY'S OWN SCIENTIFIC COMMUNITY AND SOME WILL
BE IMPORTED.

-- WE HAVE NOTED WITH CONCERN THAT FUZZY-THINKING
ANTI-BIOTECH ELEMENTS IN ITALY ARE LOOKING TO PERMANENTLY
PRECLUDE BIOTECH CONTENT IN TRADITIONAL ITALIAN PRODUCTS.

-- AMONG OTHER REPERCUSSIONS, SUCH A DEVELOPMENT MAY WELL
LIMIT THE EXTENT TO WHICH THE USG COULD SUPPORT ITALY'S
DESIRE TO AFFORD WORLD TRADE ORGANIZATION PROTECTION FOR
PRODUCTS BEARING GEOGRAPHIC INDICATORS.

-- AFTER ALL, WE CAN HARDLY HELP ITALY CREATE A PROTECTED
MARKET NICHE ONLY TO IMMEDIATELY CUT U.S. COMPANIES OUT OF IT.
SEMBLER

UNCLASSIFIED

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2002ROME01405 - Classification: UNCLASSIFIED