AMBASSADOR TALKS TRADE, STEEL AND BIOTECH WITH

UNCLAS ROME 003954 SIPDIS SENSITIVE E FOR CHASE, SECOR, SHUB; EB FOR A/S WAYNE, PDAS DONNELLY, DAS GASDEN, TPP/ATT FOR PEREZ, TPP/BTA/DCT FOR WMOORE; EUR/ERA, EUR/WE; PASS USTR FOR ALLGIER, DEILY, DAVIDSN, NOVELLI, BURCKY; USDOC FOR ITA/GALDONIS/SCLAEYS/DDEFALCO, E.O. 12958: N/A TAGS: ETRD ECON PREL IT EUN SUBJECT: AMBASSADOR TALKS TRADE, STEEL AND BIOTECH WITH VICE MINISTER URSO UNCLASSIFIED PAGE 02 ROME 03954 121532Z ¶1. (U) THE AMBASSADOR MET WITH VICE MINISTER FOR FOREIGN TRADE URSO ON AUGUST 8. AFTER DISCUSSION OF THE CONTAINER SECURITY INITIATIVE (SEPTEL),THE TWO DISCUSSED THE STATUS OF SEVERAL KEY TRADE ISSUES. ¶2. (U) FAST TRACK: URSO WAS PLEASED WITH THE PASSAGE OF THE FAST TRACK LEGISLATION IN THE U.S., CALLING IT "VERY GOOD NEWS." HE EXPRESSED THE HOPE THAT THE GREATER FLEXIBILITY WOULD FACILITATE WTO NEGOTIATIONS. ¶3. (SBU) FSC: URSO HOPED THAT MODIFICATIONS OF U.S. FSC LEGISLATION COULD BE FINISHED SOON. HE WAS CONCERNED THAT PRESSURE WAS BUILDING FOR A DECISION ON RETALIATION. THE AMBASSADOR RECALLED THAT THE U.S. HAD CHANGED OUR LEGISLATION ONCE ALREADY, IN ORDER TO MEET THE CONCERNS OF OUR TRADING PARTNERS. WE HAD LOST THE WTO CASE AND WOULD COMPLY WITH THE WTO RULING. ¶4. (SBU) STEEL: URSO TOLD THE AMBASSADOR THAT HE HAD WRITTEN TO COMMISSIONER LAMY TO EXPRESS DISAPPOINTMENT THAT NO ITALIAN STEEL EXEMPTIONS HAVE YET BEEN GRANTED BY THE U.S., AND DECLARED THAT "THIS IS A SERIOUS ISSUE FOR US.8 HE NOTED THAT OTHER EUROPEAN COUNTRIES HAVE RECEIVED STEEL EXEMPTIONS. THE AMBASSADOR ASKED URSO TO SEND A LIST OF ITALIAN STEEL EXEMPTION REQUESTS, SO THAT WE COULD ENSURE THAT USTR HAS THIS INFORMATION. ¶5. (SBU) GMOS: URSO DECLARED THAT, IN HIS VIEW, SO LONG AS GMOS WERE LABELED, AND THERE WERE TRACEABILITY STANDARDS, THERE WAS NO REASON TO KEEP GMOS OUT. THE AMBASSADOR UNCLASSIFIED PAGE 03 ROME 03954 121532Z RESPONDED THAT AGRICULTURE MINISTER ALEMANNO HAD A VERY DIFFERENT POLICY. HE HAD DECLARED A ZERO THRESHOLD FOR GMOS. ALEMANNO POINTS TO PUBLIC OPINION POLLS TO DEMONSTRATE THAT THE MAJORITY OF ITALIANS FAVOR HIS ANTI-GMO POLICY. URSO NOTED THAT HE AND MINISTER ALEMANNO WERE OF THE SAME PARTY, AND HAD KNOWN EACH OTHER FOR 30 YEARS. HOWEVER, HE EMPHASIZED, THEY DISAGREED ON THIS ISSUE. &IF I WERE THE MINISTER OF AGRICULTURE, I WOULD END AGRICULTURAL SUBSIDIES AND OPEN OUR BORDERS TO ALL AGRICULTURE IMPORTS, PARTICULARLY FROM THE THIRD WORLD. THIS WOULD ALLOW DEVELOPING COUNTRIES TO GROW ECONOMICALLY AND AFFORD OUR NON-AGRICULTURAL EXPORTS.8 URSO NOTED THAT HE WAS WRITING A BOOK ABOUT HIS TRADE VIEWS, WHICH WOULD BE PUBLISHED LATER IN THE YEAR. ¶6. (SBU) COMMENT: VICE MINISTER URSO IS A SENIOR OFFICIAL OF THE AN, CLOSE TO DEPUTY PRIME MINISTER FINI. AGRICULTURE MINISTER ALEMANNO, ALSO OF AN, COMES FROM THE RIVAL WING OF THE PARTY AND IS A PROTEGE OF LAZIO PROVINCE GOVERNOR STORACE. SEMBLER UNCLASSIFIED > 2002ROME03954 - Classification: UNCLASSIFIED