ITALY SPLIT ON BIOTECH TRACEABILITY AND LABELING,

UNCLAS SECTION 01 OF 02 ROME 003390 SIPDIS SENSITIVE EB FOR A/S WAYNE, PDAS DONNELLY, DAS GADSDEN EB/TPP/ATT FOR PEREZ E FOR SHUB EUR/ERA FOR HEN-NIL OES FOR A/S TURNER, PDAS ROCK UNCLASSIFIED PAGE 02 ROME 03390 01 OF 02 101320Z STATE PASS USTR FOR STROJE, NOVELLI STATE PASS USDA FOR APHIS:SMCCAMMON, USDA/FAS:BLUM, USDA/FAS/ITT:EJONES, USDA/FAS/OA:SLUTSKY, USDA/FAS/ITP MACKEY, RICHIE, AND OS HEGWOOD STATE PASS FDA FOR EFLAMM NSC FOR EDSON E.O. 12958: N/A TAGS: EAGR ECON ETRD ECON ETRD EU EUEAGR SUBJECT: ITALY SPLIT ON BIOTECH TRACEABILITY AND LABELING, STILL THINKING ABOUT EU CHEMICALS REFORM REF: A. STATE 98591 ¶B. STATE 52550 ¶1. THIS IS AN ACTION MESSAGE FOR DEPT.; SEE PARA 8. ESTCOUNS MET WITH MINISTRY OF ENVIRONMENT EU AFFAIRS OFFICERS ON MAY 30 TO DISCUSS THE EU PROPOSALS FOR TRACEABILITY AND LABELING OF GMO EVENTS, AND TO DISCUSS ITALIAN VIEWS TOWARD EU CHEMICALS REFORM. ¶2. FINDING THE RIGHT GOI MINISTRY WITH WHICH TO DISCUSS TRACEABILITY AND LABELING WAS A CHALLENGE. WE WERE REBUFFED BY MFA, FOREIGN TRADE, AGRICULTURE, HEALTH AND EU AFFAIRS. ALL POINTED US TO THE MINISTRY OF GOVERNMENT (MOG),WHICH HAS HANDLED THE ACCOUNT WITHOUT MUCH ENTHUSIASM, MUCH PROFILE, OR MUCH ATTENTION BEYOND THE TECHNICAL LEVEL. ¶3. HEAD OF MOE'S EU AFFAIRS OFFICE GIULIANA GASPARINI TOLD EST COUNS THAT THE GOI HAD NOT TAKEN A CONSOLIDATED POSITION ON THE TRACEABILITY AND LABELING PROPOSALS BECAUSE OF THE NOW UNCLASSIFIED PAGE 03 ROME 03390 01 OF 02 101320Z FAMILIAR SPLIT BETWEEN THE MINISTRY OF HEALTH AND THE MINISTRY OF AGRICULTURE. ACCORDING TO GASPARINI, HEALTH OPPOSES BIOTECH TRACEABILITY UNLESS HEALTH ISSUES (POSSIBLE ALLERGENS, CHANGED NUTRITIONAL COMPOSITION) ARE INTRODUCED BY THE BIOTECH PRODUCT. SHE SAID AGRICULTURE BELIEVES THAT THE PROPOSED TRACEABILITY RULES DO NOT GO FAR ENOUGH (WE KNOW THAT MINISTER OF AGRICULTURE ALEMANNO LOBBIED HEAVILY TO EU PARLIAMENTARIANS BEFORE THE EP VOTE),AND SHOULD INCLUDE TRACEABILITY THROUGH ANIMAL PRODUCTS WHEN BIOTECH FEED IS INVOLVED. THE MINISTRIES AGREE THAT LABELING IS NECESSARY TO RESPOND TO CONSUMER DEMANDS. ¶4. WITHIN THE MINISTRY OF ENVIRONMENT ITSELF, A SIMILAR SPLIT EXISTS. CONSULTANT SPECIALISTS WITHIN MOE FROM THE FORMER AMATO GOVERNMENT ARE WORKING ON TRACEABILITY AND LABELING. THESE INCLUDE FORMER GREEN PEACE ANTI-GMO ACTIVISTS WHO SEE BURDENSOME AND EXACTING T AND L AS A WAY TO BLOCK GMOS IN ;ITALY AND THE EU, ACCORDING TO GASPARINI. A MORE MODERATE FACTION WITHIN MOE, LED BY DG FOR INTERNATIONAL AFFAIRS CLINI AND INCLUDING GASPARINI HERSELF, ARE ARGUING FOR REALISTIC RULES THAT CAN BE IMPLEMENTED. GASPARINI EXPLAINED THAT THIS WOULD INCLUDE "REASONABLE" THRESHOLDS FOR ADVENTITIOUS PRESENCE (AP) (BY WHICH IS MEANT 0.3-0.7 PERCENT FOR FOODS AND FEEDS) AND SOME ACCOMMODATION ON BIOTECH PRODUCTS LIKE OILS WHICH ARE INDISTINGUISHABLE FROM CONVENTIONAL PRODUCTS AFTER PROCESSING. THE ISSUE OF AP IN SEEDS FOR PLANTING IS ESPECIALLY DIFFICULT FOR ITALY BECAUSE THE EU PROPOSALS DO NOT SPECIFICALLY ADDRESS SEEDS. CONSEQUENTLY, THE MINISTRY OF AGRICULTURE HAS BEEN ABLE TO ARGUE ITS ZERO THRESHOLD PROPOSAL AS A MEMBER STATE'S RIGHT TO SET STANDARDS AND RULES WHERE NONE ARE PROVIDED BY BRUSSELS. UNCLASSIFIED PAGE 04 ROME 03390 01 OF 02 101320Z ¶5. GASPARINI SAID THAT THE MINISTER OF ENVIRONMENT IS MOVING CAUTIOUSLY TO FIND A BRIDGE FROM ITALIAN VIEWS THROUGH THE EU PROPOSALS TO A MORE "OPEN" APPROACH TO BIOTECHNOLOGY BASED ON SCIENCE. SHE DID NOT EXPECT MUCH CLARIFICATION OF ITALIAN POSITIONS IN THE NEAR TERM, NOTING THAT THE SPANISH PRESIDENCY HAS DECIDED NOT TO DEAL FURTHER WITH BIOTECHNOLOGY, AND THAT THE DANES HAD SET THE FIRST ENVIRONMENT COUNCIL MEETING OF THEIR PRESIDENCY FOR MID-OCTOBER. ¶6. COMMENT: THE TRACEABILITY AND LABELING ISSUE IS MAKING ITS WAY SLOWLY UPWARD FROM TECHNICIAN-BUREAUCRATS WHO REMAIN STEADFASTLY ANTI-BIOTECH. MOE REPRESENTATIVES AT A RECENT MEETING CONVENED BY THE TECHNICAL SECRETARIAT AT THE EU AFFAIRS MINISTRY DID NOT CLEAR THEIR VIEWS WITH THE MINISTER'S OR DG'S OFFICE AND JOINED THE AG MINISTRY ON ARGUING THAT THE EU PROPOSALS WERE TOO LIBERAL. LOWER RANKING MOE OFFICIALS ARE RELUCTANT TO SPEAK AGAINST THE MEMBER STATE "CONSENSUS" AT TECHNICAL MEETINGS IN BRUSSELS. AT THE DIRECTOR GENERAL LEVEL, THERE IS GROWING RECOGNITION WITHIN THE MOE THAT A COHERENT POLICY IS REQUIRED FOR THE LONG TERM. END COMMENT. UNCLASSIFIED UNCLASSIFIED PTQ8772 PAGE 01 ROME 03390 02 OF 02 101320Z ACTION EUR-00 INFO LOG-00 AGRE-00 AID-00 CEA-01 CIAE-00 COME-00 CTME-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EB-00 EXME-00 E-00 FAAE-00 UTED-00 VC-00 FRB-00 HHS-01 H-01 TEDE-00 INR-00 ITC-01 L-00 VCE-00 AC-01 NSAE-00 OES-01 OMB-01 OPIC-01 ACE-00 SP-00 SSO-00 SS-00 STR-00 TEST-00 TRSE-00 USIE-00 DRL-02 G-00 SAS-00 /010W -------------- C92039 101321Z /38 R 101327Z JUL 02 FM AMEMBASSY ROME TO SECSTATE WASHDC 4734 INFO EU MEMBER STATES COLLECTIVE AMCONSUL FLORENCE AMCONSUL MILAN AMCONSUL NAPLES NSC WASHDC USDA WASHDC UNCLAS SECTION 02 OF 02 ROME 003390 SIPDIS SENSITIVE EB FOR A/S WAYNE, PDAS DONNELLY, DAS GADSDEN EB/TPP/ATT FOR PEREZ E FOR SHUB EUR/ERA FOR HEN-NIL OES FOR A/S TURNER, PDAS ROCK STATE PASS USTR FOR STROJE, NOVELLI UNCLASSIFIED PAGE 02 ROME 03390 02 OF 02 101320Z STATE PASS USDA FOR APHIS:SMCCAMMON, USDA/FAS:BLUM, USDA/FAS/ITT:EJONES, USDA/FAS/OA:SLUTSKY, USDA/FAS/ITP MACKEY, RICHIE, AND OS HEGWOOD STATE PASS FDA FOR EFLAMM NSC FOR EDSON E.O. 12958: N/A TAGS: EAGR ECON ETRD ECON ETRD EU EUEAGR SUBJECT: ITALY SPLIT ON BIOTECH TRACEABILITY AND LABELING, STILL THINKING ABOUT EU CHEMICALS REFORM -------------- EU CHEMICALS REFORM ON THE SLOW TRACK -------------- ¶7. GIORGIO SUBINI, WITHIN THE SAME MOE OFFICE, IS THE TECHNICAL EXPERT PARTICIPATING IN THE EU CHEMICAL REFORM PROCESS. WHEN REMINDED ABOUT U.S. VIEWS (REF B),SUBINI SAID HE UNDERSTOOD OUR CONCERNS ABOUT COSTS, SINCE THESE WERE THE CONCERNS OF SMALL- AND MEDIUM-SIZED BUSINESSES IN ITALY. HE ADMITTED THAT HE HAD YET TO BEGIN DISCUSSIONS WITH ITALIAN INDUSTRY, THOUGH HE PLANS TO DO SO IN THE NEAR FUTURE. HE ALSO SAID THAT HE DID NOT BELIEVE THE TECHNICAL DISCUSSIONS WERE PROCEEDING VERY QUICKLY FROM THE CONCEPTUAL PROBLEM OF MANAGING 100,000 CHEMICALS FROM THE "POLLUTER PAYS" PRINCIPLE TO PRACTICAL WORK. ¶8. COMMENT AND ACTION REQUEST: THE SIZE AND ECONOMIC IMPORTANCE OF ITALY'S CHEMICAL INDUSTRY (WITH A U.S. INVESTMENT OF USD 2.3 BILLION),AND THE LACK OF SIGNIFICANT OUTREACH BY MOE, MAY CREATE AN OPPORTUNITY. WE WOULD LIKE TO UNCLASSIFIED PAGE 03 ROME 03390 02 OF 02 101320Z BRIEF SELECTED CHEMICAL MANUFACTURERS IN ITALY ON THE POSSIBLE CONSEQUENCES OF THE EU REFORM, AND WOULD APPRECIATE KNOWING ABOUT EFFORTS MADE ALREADY BY INDUSTRY TO CONTACT ITALIAN FIRMS. SEMBLER UNCLASSIFIED > 2002ROME03390 - Classification: UNCLASSIFIED