ITALY'S BARRIERS TO AG BIOTECHNOLOGY

UNCLAS SECTION 01 OF 02 ROME 004519

SIPDIS

STATE FOR EB FOR RCEKUTA AND CSCHONANDER
EUR/ERA PASS TO JOHN HENNESSEY NILAND
EB/TPP PASS TO DEBBIE MALAC
FAS/USDA PASS TO EJONES AND DYOUNG
USTR PASS TO MSLOAN
BRUSSELS FOR USEU
EUR/WE FOR TEKACH-BALL AND BURKHEAD
UNCLASSIFIED

PAGE 02 ROME 04519 01 OF 02 171516Z
MILAN FOR PRINCIPAL OFFICER
FLORENCE FOR PRINCIPAL OFFICER
NAPLES FOR PRINCIPAL OFFICER

E.O. 12958: N/A
TAGS: EAGR ETRD TBIO ETRD TBIO ITALY'>IT EUN ITEAGR EUN
SUBJECT: ITALY'S BARRIERS TO AG BIOTECHNOLOGY

REF: (A)STATE 166333; (B) 00 SECSTATE 156317;

(C) 00 BRUSSELS 04909; (D) 00 ROME 06366;
(E) ROME 00371; (F) 97 ROME 08523


1. SUMMARY: IN RESPONSE TO REFTEL A, POST
PROVIDES BACKGROUND ON ITALY'S BARRIERS TO
AGRICULTURAL BIOTECHNOLOGY. ITALY'S THREE
NATIONAL BARRIERS TO AGRICULTURAL
BIOTECHNOLOGY ARE A BAN ON EU-APPROVED CORN
VARIETIES, ITALY'S RESTRICTIVE THRESHOLD FOR
ADVENTITIOUS PRESENCE OF BIOTECH MATERIAL IN
CONVENTIONAL SEEDS, AND A NATIONAL SEED
REGISTRY.

THE CORN BAN


2. THE AMATO DECREE, PUBLISHED AUGUST 8,
2000, WAS CALLED A "SUSPENSION" BY THE
ITALIANS BECAUSE IT SUPPOSEDLY WAS A
TEMPORARY MEASURE TO PROHIBIT IMPORTS OF FOUR
EU-APPROVED BIOTECH CORN VARIETIES. THE BAN
HAS NEVER BEEN RESCINDED. REFS B AND C DETAIL
THE CORN VARIETIES, PROCEDURAL DETAILS ON
UNCLASSIFIED

PAGE 03 ROME 04519 01 OF 02 171516Z
NOTIFICATION, AND EU COMMISSION REACTION.
ITALY INVOKED ARTICLE 12 OF THE EU'S 1997
NOVEL FOODS REGULATION NUMBER 258/97 ON THE
GROUNDS THAT AS A MEMBER STATE THEY WERE
ALLOWED TO SUSPEND TRADE IN NOVEL FOOD ITEMS
WHICH COULD BE PROVED TO BE HARMFUL TO HUMAN
HEALTH OR THE ENVIRONMENT. ITALY PUT FORTH A
JUSTIFICATION OF THE BAN BASED ON A HEALTH
RISK. THE COMMISSION ISSUED AN OPINION,
CS/NF/DOSLL ADD 4 REV 2 FINAL AND CONCLUDED
"THE COMMITTEE IS OF THE OPINION THAT THE
INFORMATION PROVIDED BY THE ITALIAN
AUTHORITIES DOES NOT PROVIDE DETAILED
SCIENTIFIC GROUNDS FOR CONSIDERING THAT THE
USE OF THE NOVEL FOODS IN QUESTION ENDANGERS
HUMAN HEALTH." NOTWITHSTANDING THIS
CONCLUSION, THE COMMISSION FAILED TO CENSURE
THE GOI.


3. THE BAN PROHIBITS IMPORTS ON THE FOUR
TYPES OF EU-APPROVED BIOTECH CORN, WHETHER AS
INGREDIENTS OR AS FINISHED PRODUCTS. THE
ITALIAN MINISTRY OF HEALTH HAS AUTHORITY OVER
TESTING CORN INGREDIENTS IN PROCESSED FOOD,
AND THE MINISTRY OF AGRICULTURE HAS AUTHORITY
OVER SEED CORN FOR PLANTING OR FEED CORN.
COMMENT: THESE MINISTRIES CONTINUE TO BE IN
CONFLICT OVER GM TESTING ISSUES; THEY DO NOT
COORDINATE ON IMPLEMENTATION OR
METHODOLOGIES. END COMMENT. IN REF D POST
REPORTED SCANT ENFORCEMENT OF THE BAN.
UNCLASSIFIED

PAGE 04 ROME 04519 01 OF 02 171516Z


4. TRADE IMPACT THE AMATO DECREE IS LARGELY
A POLITICAL GESTURE. ITALY IS A RELATIVELY
LARGE PRODUCER OF CORN, APPROXIMATELY 10
MILLION TONS ANNUALLY, WHICH IT CONSUMES
DOMESTICALLY. ITALY IMPORTS ONLY ABOUT
500,000 TONS ANNUALLY, ALL FROM FRANCE.

CONVENTIONAL SEED TRADE


5. AFTER SEVERAL PLANTING SEASONS FRAUGHT
WITH CONFLICTS OVER "ZERO TOLERANCE" OF GM IN
SEEDS FOR PLANTING, ITALY'S NEW MINISTER OF
AGRICULTURE PROPOSED A DECREE DECEMBER 28,
2001 TO ADOPT A TOLERANCE FOR ADVENTITIOUS
PRESENCE OF GM IN CONVENTIONAL CORN AND
SOYBEAN SEEDS FOR PLANTING. HAVING
SUBSEQUENTLY FAILED TO REACH CONSENSUS AMONG
THE THREE MAJOR FARM GROUPS AND OTHER
STAKEHOLDERS, MINISTER ALEMANNO OUTLINED A
PLAN CALLING FOR AN OUTRIGHT REJECTION OF
SEED LOTS TESTING AT MORE THAN ONE PERCENT GM
CONTENT AND FOR AN APPLICATION OF "FLEXIBLE
CONTROLS" OF LOTS ABOVE ZERO BUT LESS THAN
ONE PERCENT. SUBSEQUENT IMPORTS OF SEEDS
LOTS WERE TESTED WITH SOME REJECTIONS OF U.S.

UNCLASSIFIED

UNCLASSIFIED PTQ3921

PAGE 01 ROME 04519 02 OF 02 171516Z
ACTION EUR-00

INFO LOG-00 NP-00 AID-00 CEA-01 CIAE-00 COME-00 CTME-00
DINT-00 DODE-00 DOEE-00 ITCE-00 SRPP-00 EB-00 EXME-00
E-00 UTED-00 VC-00 FRB-00 HHS-01 H-01 TEDE-00
INR-00 IO-00 ITC-01 L-00 VCE-00 AC-01 NSAE-00
NSCE-00 NSF-01 OES-01 OIC-02 OMB-01 OPIC-01 PM-00
PRS-00 ACE-00 SP-00 SSO-00 SS-00 STR-00 TEST-00
TRSE-00 T-00 USIE-00 EPAE-00 ECA-00 PMB-00 DRL-02
G-00 SAS-00 /013W
-------------- E89422 171517Z /38
P 171452Z SEP 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 5876
USDA FAS WASHDC 2275
INFO AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES
EU MEMBER STATES COLLECTIVE

UNCLAS SECTION 02 OF 02 ROME 004519

SIPDIS

STATE FOR EB FOR RCEKUTA AND CSCHONANDER
EUR/ERA PASS TO JOHN HENNESSEY NILAND
EB/TPP PASS TO DEBBIE MALAC
FAS/USDA PASS TO EJONES AND DYOUNG
USTR PASS TO MSLOAN
BRUSSELS FOR USEU
EUR/WE FOR TEKACH-BALL AND BURKHEAD
UNCLASSIFIED

PAGE 02 ROME 04519 02 OF 02 171516Z
MILAN FOR PRINCIPAL OFFICER
FLORENCE FOR PRINCIPAL OFFICER
NAPLES FOR PRINCIPAL OFFICER

E.O. 12958: N/A
TAGS: EAGR ETRD TBIO ETRD TBIO IT EUN ITEAGR EUN
SUBJECT: ITALY'S BARRIERS TO AG BIOTECHNOLOGY

SEEDS FOR PLANTING. THE MINAG HAS PUBLICLY
STATED THAT THERE IS NO CHANGE IN ITALY'S
ZERO TOLERANCE FOR BIOTECH IN SEEDS. IN
PRACTICE, ITALY HAS MOVED FROM A "ZERO
TOLERANCE" RELYING ON A QUALITATIVE
ASSESSMENT OF GM CONTENT IN SEEDS TO A "ZERO
TOLERANCE" WITH QUANTITATIVE ASSESSMENT, BUT
ITALY STILL LACKS CONSISTENCY IN TESTING
METHODOLOGY AND THUS AN UNEQUIVOCAL THRESHOLD
OF TOLERANCE FOR SPECIFIC BIOTECH EVENTS.
THERE IS STILL CONSIDERABLE RISK TO US
EXPORTERS OF SEEDS THAT THEIR PRODUCTS CAN BE
REJECTED AT PORTS. THERE IS ALSO RISK AT THE
POINT OF SALE, BECAUSE SEEDS CAN ENTER ITALY
BY OVERLAND ROUTES THROUGH OTHER EU
COUNTRIES, AND LATER BE REMOVED FROM RETAIL
SHELVES AND SUBJECTED TO SAMPLING. REF E
DETAILS AGMIN ALEMANNO'S JANUARY 2002
STATEMENTS ON THRESHOLDS FOR SEEDS FOR
PLANTING.

ECONOMIC IMPACTS

UNCLASSIFIED

PAGE 03 ROME 04519 02 OF 02 171516Z

6. ALTHOUGH DIFFICULT TO QUANTIFY, IN PART
BECAUSE OF TRADE WHICH ENTERS ITALY FROM LAND
ROUTES ORIGINATING IN OTHER EU COUNTRIES,
POST BELIEVES THAT THE US SUPPLIES
APPROXIMATELY EIGHTY PERCENT OF ITALY'S
IMPORTS OF SOYBEAN SEED AND ABOUT HALF OF
ITALY'S CORN SEED. US EXPORTS OF ALL SEED
TYPES IN 2001 TOTALED $32 MILLION. IN THREE
OF THE LAST SIX YEARS ITALY HAS BOUGHT US SOY
AND CORN SEEDS TOGETHER WORTH MORE THAN $45
MILLION. HOWEVER, US SEED SALES TO ITALY ARE
HIGHLY VARIABLE FROM YEAR TO YEAR. DATA DO
NOT POINT TO ONE REASON FOR THIS VARIABILITY,
BUT THE UNCERTAINTIES AND PROHIBITIONS
AGAINST BIOTECH IN CONVENTIONAL SEED HAVE
INTRODUCED SIGNIFICANT RISK INTO THE MARKET.

NATIONAL SEED REGISTRY


7. ITALY MAINTAINS A NATIONAL SEED REGISTRY
THAT CAN PROHIBIT SEEDS FROM BEING IMPORTED
IF THEY ARE DEEMED TO PUT THE COUNTRY'S
ECOSYSTEM OR BIODIVERSITY AT RISK, REGARDLESS
OF WHETHER THESE SEEDS HAVE BEEN APPROVED BY
OTHER EU MEMBERS (SEE REF F). APPLICATIONS
MUST BE SUBMITTED TO THE MINISTRY OF
AGRICULTURE, WHICH HAS HISTORICALLY BLOCKED
APPROVAL OF BIOTECH SEEDS FOR PLANTING IN
ITALY. THERE IS ALSO A TWO YEAR FIELD TESTING
REQUIREMENT FOR ALL TYPES OF SEEDS FOR
PLANTING. SEMBLER
UNCLASSIFIED

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UNCLASSIFIED

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2002ROME04519 - Classification: UNCLASSIFIED