WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH

C O N F I D E N T I A L ROME 006137 SIPDIS C O R R E C T E D - COPY (ADDED ADDRESSEE(S)) DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER DEPT FOR EUR DEPT FOR EB DEPT FOR OES STATE PASS TO USDA FAS WASHDC USDA FOR U/S PENN AND HEGWOOD STATE PASS USTR E.O. 12958: DECL: 12/24/2012 TAGS: EAGR ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV IT EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH CONFIDENTIAL PAGE 02 ROME 06137 01 OF 03 091117Z CLASSIFIED BY: AMBASSADOR MEL SEMBLER FOR REASONS 1.5 (B) AND (D). ¶1. (C) SUMMARY. AFTER MORE THAN A YEAR OF HIGH-LEVEL AND INTENSIVE EMBASSY WORK WITH THE PRIME MINISTER AND HIS GOVERNMENT, A COORDINATED, ITALIAN NATIONAL POLICY ON BIOTECHNOLOGY REMAINS ELUSIVE. MINISTER OF AGRICULTURE ALEMANNO CONTINUES TO PRESS THE ANTI-GMO CASE BY ARGUING FOR A "ZERO-TOLERANCE" POLICY ON SEEDS FOR PLANTING, AND BY ARGUING THAT ITALIAN QUALITY PRODUCTS AND ALIMENTARY PATRIMONY MAY BE SUBJECT TO "IRREVERSIBLE LOSS" IF AGRICULTURAL BIOTECHNOLOGY WERE INTRODUCED IN ITALY. WITH NO DOMESTIC POLITICAL UPSIDE FOR THE PM TO CHANGE POLICY, RENEWED AND CONCERTED U.S. EFFORTS AT THE CABINET LEVEL WILL BE NEEDED TO CONVINCE BERLUSCONI THAT BIOTECHNOLOGY POLICY OUGHT TO BE ON HIS RADAR SCREEN. ABSENT SUCH PRESSURE FROM WASHINGTON, THE PM IS LIKELY TO CONTINUE TO DRIFT ALONG, ALLOWING HIS OUTSPOKEN AGRICULTURE MINISTER TO STEAL THE SHOW AND PUSH ITALIAN POLICY BEYOND THE POINT WHERE WE CAN ENGAGE CONSTRUCTIVELY. WE ENCOURAGE DEPARTMENT AND WASHINGTON AGENCIES TO USE THE FIRST SIX MONTHS OF 2003 TO PUSH THE GOI TO PUT ITS NATIONAL HOUSE IN ORDER, AND TO USE THE GOI EU PRESIDENCY TO CLOSE FURTHER REMAINING POLICY DIFFERENCES. SEE EMBASSY RECOMMENDATION PARA 14. BACKGROUND AND CURRENT SITUATION ¶2. (C) THE PRINCIPAL GOALS OF THE TRI-MISSION BIOTECHNOLOGY WORKING GROUP (SEE ACTION AND FINANCIAL PLAN SEPTEL) ARE TO REMOVE BARRIERS TO INTERNATIONAL TRADE IN BIOTECHNOLOGY PRODUCTS AND TO PROMOTE THE TECHNOLOGY AS A USEFUL TOOL IN CONFIDENTIAL PAGE 03 ROME 06137 01 OF 03 091117Z ACHIEVING SUSTAINABLE DEVELOPMENT IN DEVELOPED AND DEVELOPING COUNTRIES. IN ITALY, THE FIRST PRIORITY IS TO GET THE PRIME MINISTER TO PULL HIS GOVERNMENT AROUND HIS POSITIVE PERSONAL VIEWS OF BIOTECHNOLOGY, AS EXPRESSED TO THE PRESIDENT AND MOST FULLY AT THE FAO SUMMIT IN JUNE 2002. IN PARTICULAR, THE PM NEEDS TO REIN IN THE ONLY PROMINENT OUTLIER IN HIS GOVERNMENT, MINISTER OF AGRICULTURE ALEMANNO. OTHER MINISTERS--ENVIRONMENT, HEALTH, RESEARCH, PRODUCTIVE ACTIVITIES-- ARE IN THE PRO CAMP, BUT THEIR VOICES WILL REMAIN FRAGMENTED AND UNHEEDED UNTIL THE PM GIVES THE RIGHT SIGNAL. ¶3. (C) IN THE ABSENCE OF CLEAR DIRECTION FROM THE PM, THE GOI FOUNDERS AT IMPORTANT MEETINGS LIKE THE OCTOBER AG AND ENVIRONMENT COUNCIL MEETINGS, OR WORSE, AS HAPPENED IN DECEMBER, TAKES UNHELPFUL POSITIONS OR HIDES BEHIND EU CONSENSUS. FOR EXAMPLE, MINISTER OF ENVIRONMENT MATTEOLI, WITH WHOM WE HAVE WORKED HARD TO CREATE OPENINGS FOR BILATERAL SCIENTIFIC DISCUSSIONS AND PROGRAMS, WAS UNABLE TO GET MINISTER OF EU AFFAIRS BUTTIGLIONE TO CONVENE AN INTERMINISTERIAL MEETING ON THE EU TRACEABILITY AND LABELING AND FOOD AND FEED DIRECTIVES. THE RESULT IS THAT ITALY STAYS IN THE BACKGROUND, AND CONTINUES ITS INERTIAL ALLIANCE WITH MORE RESTRICTIVE MEMBER STATES. ¶4. (SBU) PREVIOUS EMBASSY REPORTING HAS INCLUDED EXTENSIVE DISCUSSION OF THE "AMATO DECREE", WHICH BANNED FOUR CORN VARIETIES FOR PLANTING IN ITALY ON PRECAUTIONARY GROUNDS, EVEN THOUGH THE VARIETIES HAD BEEN APPROVED ALREADY BY THE EU. ITALIAN EXPERT OPINION ARGUING THAT A REVIEW OF SAFETY CONCERNS LEFT NO FURTHER BASIS FOR THE BAN HAS BEEN STYMIED CONFIDENTIAL PAGE 04 ROME 06137 01 OF 03 091117Z AT THE POLITICAL LEVEL IN THE PM'S OFFICE FOR MONTHS. THE ARBITRARINESS OF THE DECREE, IF LEFT UNCHALLENGED, IS LIKELY TO ENCOURAGE SIMILAR MEASURES AS AG MINISTER ALEMANNO SHIFTS HIS ATTENTION FROM FOOD AND FEED TO SEEDS IN COMING MONTHS. WE UNDERSTAND THAT INDUSTRY FILED MONTHS AGO AN APPEAL TO THE "AMATO DECREE" WITH THE LAZIO REGION ADMINISTRATIVE COURT (TAR),AND THAT THE TAR HAS SOUGHT AN OPINION FROM THE EUROPEAN COURT OF JUSTICE, WHICH IS EXPECTED IN FEBRUARY 2003. ¶5. (SBU) THE MOST IMPORTANT OF POTENTIAL NEW (OR MORE PROPERLY SPEAKING "RENEWED") RESTRICTIVE MEASURES RELATES TO THE IMPORT OF SEEDS FOR PLANTING. LATE IN DECEMBER 2001, THE MINISTRY OF AGRICULTURE ANNOUNCED A GOAL OF A "ZERO TOLERANCE" FOR GM ADVENTITIOUS PRESENCE IN SEEDS. WHEN THIS PROVED IMPOSSIBLE, AN INTERIM PROCEDURE TO ALLOW AN AP OF 0.1-0.5 % IN SEEDS WAS FOUND, BUT THE GOAL REMAINS ZERO TOLERANCE. IN EARLY NOVEMBER THE MINISTRY OF AGRICULTURE GROUP ON GMOS PROPOSED A 0.01 % AP LIMIT FOR DESIGNATION OF NON-GMO SEEDS, THE CURRENT TESTING LIMIT WITH AVAILABLE ANALYTICAL TOOLS. ENVISIONED, HOWEVER, IS A DESIGNATION OF GMO FREE SEEDS, WHICH WOULD BE GUARANTEED BY THE PRODUCER, AND WOULD HAVE TO PASS TESTS OF GREATER SENSITIVITY. SUCH SEEDS WOULD BE PRODUCED IN "UNCONTAMINATED ENCLAVES" IN ITALY AND ELSEWHERE. A DECEMBER 4 CIRCULAR FROM THE MINISTRY TO SEED SUPPLIERS ASKS COMPANIES TO IDENTIFY QUANTITIES OF SOY AND CORN SEED WHICH CAN MEET THE GMO-FREE "ZERO TOLERANCE" CONFIDENTIAL > @@@OASYS@@@ CONFIDENTIAL PTO2343 PAGE 01 ROME 06137 01 OF 03 270952Z ACTION SSO-00 INFO LOG-00 AGRE-00 ANHR-00 EB-00 E-00 TEDE-00 SS-00 STR-00 SAS-00 (E-00 TEDE-00 SAS-00 ) /000W -------------- 2104F5 070814Z /38 P 270939Z DEC 02 FM AMEMBASSY ROME TO SECSTATE WASHDC PRIORITY 7491 INFO EU MEMBER STATES COLLECTIVE AMCONSUL FLORENCE AMCONSUL MILAN AMCONSUL NAPLES C O N F I D E N T I A L SECTION 01 OF 03 ROME 006137 SIPDIS DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER STATE PASS TO USDA FAS WASHDC USDA FOR U/S PENN AND HEGWOOD STATE PASS USTR E.O. 12958: DECL: 12/24/2012 TAGS: EAGR ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV IT EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH CLASSIFIED BY: AMBASSADOR MEL SEMBLER FOR REASONS 1.5 (B) AND (D). ¶1. (C) SUMMARY. AFTER MORE THAN A YEAR OF HIGH-LEVEL AND INTENSIVE EMBASSY WORK WITH THE PRIME MINISTER AND HIS GOVERNMENT, A COORDINATED, ITALIAN NATIONAL POLICY ON CONFIDENTIAL PAGE 02 ROME 06137 01 OF 03 270952Z BIOTECHNOLOGY REMAINS ELUSIVE. MINISTER OF AGRICULTURE ALEMANNO CONTINUES TO PRESS THE ANTI-GMO CASE BY ARGUING FOR A "ZERO-TOLERANCE" POLICY ON SEEDS FOR PLANTING, AND BY ARGUING THAT ITALIAN QUALITY PRODUCTS AND ALIMENTARY PATRIMONY MAY BE SUBJECT TO "IRREVERSIBLE LOSS" IF AGRICULTURAL BIOTECHNOLOGY WERE INTRODUCED IN ITALY. WITH NO DOMESTIC POLITICAL UPSIDE FOR THE PM TO CHANGE POLICY, RENEWED AND CONCERTED U.S. EFFORTS AT THE CABINET LEVEL WILL BE NEEDED TO CONVINCE BERLUSCONI THAT BIOTECHNOLOGY POLICY OUGHT TO BE ON HIS RADAR SCREEN. ABSENT SUCH PRESSURE FROM WASHINGTON, THE PM IS LIKELY TO CONTINUE TO DRIFT ALONG, ALLOWING HIS OUTSPOKEN AGRICULTURE MINISTER TO STEAL THE SHOW AND PUSH ITALIAN POLICY BEYOND THE POINT WHERE WE CAN ENGAGE CONSTRUCTIVELY. WE ENCOURAGE DEPARTMENT AND WASHINGTON AGENCIES TO USE THE FIRST SIX MONTHS OF 2003 TO PUSH THE GOI TO PUT ITS NATIONAL HOUSE IN ORDER, AND TO USE THE GOI EU PRESIDENCY TO CLOSE FURTHER REMAINING POLICY DIFFERENCES. SEE EMBASSY RECOMMENDATION PARA 14. BACKGROUND AND CURRENT SITUATION ¶2. (C) THE PRINCIPAL GOALS OF THE TRI-MISSION BIOTECHNOLOGY WORKING GROUP (SEE ACTION AND FINANCIAL PLAN SEPTEL) ARE TO REMOVE BARRIERS TO INTERNATIONAL TRADE IN BIOTECHNOLOGY PRODUCTS AND TO PROMOTE THE TECHNOLOGY AS A USEFUL TOOL IN ACHIEVING SUSTAINABLE DEVELOPMENT IN DEVELOPED AND DEVELOPING COUNTRIES. IN ITALY, THE FIRST PRIORITY IS TO GET THE PRIME MINISTER TO PULL HIS GOVERNMENT AROUND HIS POSITIVE PERSONAL VIEWS OF BIOTECHNOLOGY, AS EXPRESSED TO THE PRESIDENT AND MOST FULLY AT THE FAO SUMMIT IN JUNE 2002. IN PARTICULAR, THE PM NEEDS TO REIN IN THE ONLY PROMINENT OUTLIER IN HIS CONFIDENTIAL PAGE 03 ROME 06137 01 OF 03 270952Z GOVERNMENT, MINISTER OF AGRICULTURE ALEMANNO. OTHER MINISTERS--ENVIRONMENT, HEALTH, RESEARCH, PRODUCTIVE ACTIVITIES-- ARE IN THE PRO CAMP, BUT THEIR VOICES WILL REMAIN FRAGMENTED AND UNHEEDED UNTIL THE PM GIVES THE RIGHT SIGNAL. ¶3. (C) IN THE ABSENCE OF CLEAR DIRECTION FROM THE PM, THE GOI FOUNDERS AT IMPORTANT MEETINGS LIKE THE OCTOBER AG AND ENVIRONMENT COUNCIL MEETINGS, OR WORSE, AS HAPPENED IN DECEMBER, TAKES UNHELPFUL POSITIONS OR HIDES BEHIND EU CONSENSUS. FOR EXAMPLE, MINISTER OF ENVIRONMENT MATTEOLI, WITH WHOM WE HAVE WORKED HARD TO CREATE OPENINGS FOR BILATERAL SCIENTIFIC DISCUSSIONS AND PROGRAMS, WAS UNABLE TO GET MINISTER OF EU AFFAIRS BUTTIGLIONE TO CONVENE AN INTERMINISTERIAL MEETING ON THE EU TRACEABILITY AND LABELING AND FOOD AND FEED DIRECTIVES. THE RESULT IS THAT ITALY STAYS IN THE BACKGROUND, AND CONTINUES ITS INERTIAL ALLIANCE WITH MORE RESTRICTIVE MEMBER STATES. ¶4. (SBU) PREVIOUS EMBASSY REPORTING HAS INCLUDED EXTENSIVE DISCUSSION OF THE "AMATO DECREE", WHICH BANNED FOUR CORN VARIETIES FOR PLANTING IN ITALY ON PRECAUTIONARY GROUNDS, EVEN THOUGH THE VARIETIES HAD BEEN APPROVED ALREADY BY THE EU. ITALIAN EXPERT OPINION ARGUING THAT A REVIEW OF SAFETY CONCERNS LEFT NO FURTHER BASIS FOR THE BAN HAS BEEN STYMIED AT THE POLITICAL LEVEL IN THE PM'S OFFICE FOR MONTHS. THE ARBITRARINESS OF THE DECREE, IF LEFT UNCHALLENGED, IS LIKELY TO ENCOURAGE SIMILAR MEASURES AS AG MINISTER ALEMANNO SHIFTS HIS ATTENTION FROM FOOD AND FEED TO SEEDS IN COMING MONTHS. WE UNDERSTAND THAT INDUSTRY FILED MONTHS AGO AN APPEAL TO THE "AMATO DECREE" WITH THE LAZIO REGION ADMINISTRATIVE COURT CONFIDENTIAL PAGE 04 ROME 06137 01 OF 03 270952Z (TAR),AND THAT THE TAR HAS SOUGHT AN OPINION FROM THE EUROPEAN COURT OF JUSTICE, WHICH IS EXPECTED IN FEBRUARY 2003. ¶5. (SBU) THE MOST IMPORTANT OF POTENTIAL NEW (OR MORE PROPERLY SPEAKING "RENEWED") RESTRICTIVE MEASURES RELATES TO THE IMPORT OF SEEDS FOR PLANTING. LATE IN DECEMBER 2001, THE MINISTRY OF AGRICULTURE ANNOUNCED A GOAL OF A "ZERO TOLERANCE" FOR GM ADVENTITIOUS PRESENCE IN SEEDS. WHEN THIS PROVED IMPOSSIBLE, AN INTERIM PROCEDURE TO ALLOW AN AP OF 0.1-0.5 % IN SEEDS WAS FOUND, BUT THE GOAL REMAINS ZERO TOLERANCE. IN EARLY NOVEMBER THE MINISTRY OF AGRICULTURE GROUP ON GMOS PROPOSED A 0.01 % AP LIMIT FOR DESIGNATION OF NON-GMO SEEDS, THE CURRENT TESTING LIMIT WITH AVAILABLE ANALYTICAL TOOLS. ENVISIONED, HOWEVER, IS A DESIGNATION OF GMO FREE SEEDS, WHICH WOULD BE GUARANTEED BY THE PRODUCER, AND WOULD HAVE TO PASS TESTS OF GREATER SENSITIVITY. SUCH SEEDS WOULD BE PRODUCED IN "UNCONTAMINATED ENCLAVES" IN ITALY AND ELSEWHERE. A DECEMBER 4 CIRCULAR FROM THE MINISTRY TO SEED SUPPLIERS ASKS COMPANIES TO IDENTIFY QUANTITIES OF SOY AND CORN SEED WHICH CAN MEET THE GMO-FREE "ZERO TOLERANCE" CONFIDENTIAL CONFIDENTIAL PTQ1948 PAGE 01 ROME 06137 01 OF 03 091018Z ACTION SSO-00 INFO LOG-00 COR-01 AGRE-00 AMAD-00 ANHR-00 EB-00 EUR-00 E-00 TEDE-00 OES-00 SS-00 STR-00 T-00 SAS-00 /001W -------------- 225B51 091019Z /38 P 270939Z DEC 02 FM AMEMBASSY ROME TO SECSTATE WASHDC PRIORITY 7491 INFO EU MEMBER STATES COLLECTIVE AMCONSUL FLORENCE AMCONSUL MILAN AMCONSUL NAPLES C O N F I D E N T I A L SECTION 01 OF 03 ROME 006137 SIPDIS C O R R E C T E D - COPY (ADDED ADDRESSEE(S)) DEPT FOR U/S LARSON FROM AMBASSADOR SEMBLER DEPT FOR EUR DEPT FOR EB DEPT FOR OES STATE PASS TO USDA FAS WASHDC USDA FOR U/S PENN AND HEGWOOD STATE PASS USTR E.O. 12958: DECL: 12/24/2012 TAGS: EAGR ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV IT EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH CONFIDENTIAL PAGE 02 ROME 06137 01 OF 03 091018Z CLASSIFIED BY: AMBASSADOR MEL SEMBLER FOR REASONS 1.5 (B) AND (D). ¶1. (C) SUMMARY. AFTER MORE THAN A YEAR OF HIGH-LEVEL AND INTENSIVE EMBASSY WORK WITH THE PRIME MINISTER AND HIS GOVERNMENT, A COORDINATED, ITALIAN NATIONAL POLICY ON BIOTECHNOLOGY REMAINS ELUSIVE. MINISTER OF AGRICULTURE ALEMANNO CONTINUES TO PRESS THE ANTI-GMO CASE BY ARGUING FOR A "ZERO-TOLERANCE" POLICY ON SEEDS FOR PLANTING, AND BY ARGUING THAT ITALIAN QUALITY PRODUCTS AND ALIMENTARY PATRIMONY MAY BE SUBJECT TO "IRREVERSIBLE LOSS" IF AGRICULTURAL BIOTECHNOLOGY WERE INTRODUCED IN ITALY. WITH NO DOMESTIC POLITICAL UPSIDE FOR THE PM TO CHANGE POLICY, RENEWED AND CONCERTED U.S. EFFORTS AT THE CABINET LEVEL WILL BE NEEDED TO CONVINCE BERLUSCONI THAT BIOTECHNOLOGY POLICY OUGHT TO BE ON HIS RADAR SCREEN. ABSENT SUCH PRESSURE FROM WASHINGTON, THE PM IS LIKELY TO CONTINUE TO DRIFT ALONG, ALLOWING HIS OUTSPOKEN AGRICULTURE MINISTER TO STEAL THE SHOW AND PUSH ITALIAN POLICY BEYOND THE POINT WHERE WE CAN ENGAGE CONSTRUCTIVELY. WE ENCOURAGE DEPARTMENT AND WASHINGTON AGENCIES TO USE THE FIRST SIX MONTHS OF 2003 TO PUSH THE GOI TO PUT ITS NATIONAL HOUSE IN ORDER, AND TO USE THE GOI EU PRESIDENCY TO CLOSE FURTHER REMAINING POLICY DIFFERENCES. SEE EMBASSY RECOMMENDATION PARA 14. BACKGROUND AND CURRENT SITUATION ¶2. (C) THE PRINCIPAL GOALS OF THE TRI-MISSION BIOTECHNOLOGY WORKING GROUP (SEE ACTION AND FINANCIAL PLAN SEPTEL) ARE TO REMOVE BARRIERS TO INTERNATIONAL TRADE IN BIOTECHNOLOGY PRODUCTS AND TO PROMOTE THE TECHNOLOGY AS A USEFUL TOOL IN CONFIDENTIAL PAGE 03 ROME 06137 01 OF 03 091018Z ACHIEVING SUSTAINABLE DEVELOPMENT IN DEVELOPED AND DEVELOPING COUNTRIES. IN ITALY, THE FIRST PRIORITY IS TO GET THE PRIME MINISTER TO PULL HIS GOVERNMENT AROUND HIS POSITIVE PERSONAL VIEWS OF BIOTECHNOLOGY, AS EXPRESSED TO THE PRESIDENT AND MOST FULLY AT THE FAO SUMMIT IN JUNE 2002. IN PARTICULAR, THE PM NEEDS TO REIN IN THE ONLY PROMINENT OUTLIER IN HIS GOVERNMENT, MINISTER OF AGRICULTURE ALEMANNO. OTHER MINISTERS--ENVIRONMENT, HEALTH, RESEARCH, PRODUCTIVE ACTIVITIES-- ARE IN THE PRO CAMP, BUT THEIR VOICES WILL REMAIN FRAGMENTED AND UNHEEDED UNTIL THE PM GIVES THE RIGHT SIGNAL. ¶3. (C) IN THE ABSENCE OF CLEAR DIRECTION FROM THE PM, THE GOI FOUNDERS AT IMPORTANT MEETINGS LIKE THE OCTOBER AG AND ENVIRONMENT COUNCIL MEETINGS, OR WORSE, AS HAPPENED IN DECEMBER, TAKES UNHELPFUL POSITIONS OR HIDES BEHIND EU CONSENSUS. FOR EXAMPLE, MINISTER OF ENVIRONMENT MATTEOLI, WITH WHOM WE HAVE WORKED HARD TO CREATE OPENINGS FOR BILATERAL SCIENTIFIC DISCUSSIONS AND PROGRAMS, WAS UNABLE TO GET MINISTER OF EU AFFAIRS BUTTIGLIONE TO CONVENE AN INTERMINISTERIAL MEETING ON THE EU TRACEABILITY AND LABELING AND FOOD AND FEED DIRECTIVES. THE RESULT IS THAT ITALY STAYS IN THE BACKGROUND, AND CONTINUES ITS INERTIAL ALLIANCE WITH MORE RESTRICTIVE MEMBER STATES. ¶4. (SBU) PREVIOUS EMBASSY REPORTING HAS INCLUDED EXTENSIVE DISCUSSION OF THE "AMATO DECREE", WHICH BANNED FOUR CORN VARIETIES FOR PLANTING IN ITALY ON PRECAUTIONARY GROUNDS, EVEN THOUGH THE VARIETIES HAD BEEN APPROVED ALREADY BY THE EU. ITALIAN EXPERT OPINION ARGUING THAT A REVIEW OF SAFETY CONCERNS LEFT NO FURTHER BASIS FOR THE BAN HAS BEEN STYMIED CONFIDENTIAL PAGE 04 ROME 06137 01 OF 03 091018Z AT THE POLITICAL LEVEL IN THE PM'S OFFICE FOR MONTHS. THE ARBITRARINESS OF THE DECREE, IF LEFT UNCHALLENGED, IS LIKELY TO ENCOURAGE SIMILAR MEASURES AS AG MINISTER ALEMANNO SHIFTS HIS ATTENTION FROM FOOD AND FEED TO SEEDS IN COMING MONTHS. WE UNDERSTAND THAT INDUSTRY FILED MONTHS AGO AN APPEAL TO THE "AMATO DECREE" WITH THE LAZIO REGION ADMINISTRATIVE COURT (TAR),AND THAT THE TAR HAS SOUGHT AN OPINION FROM THE EUROPEAN COURT OF JUSTICE, WHICH IS EXPECTED IN FEBRUARY 2003. ¶5. (SBU) THE MOST IMPORTANT OF POTENTIAL NEW (OR MORE PROPERLY SPEAKING "RENEWED") RESTRICTIVE MEASURES RELATES TO THE IMPORT OF SEEDS FOR PLANTING. LATE IN DECEMBER 2001, THE MINISTRY OF AGRICULTURE ANNOUNCED A GOAL OF A "ZERO TOLERANCE" FOR GM ADVENTITIOUS PRESENCE IN SEEDS. WHEN THIS PROVED IMPOSSIBLE, AN INTERIM PROCEDURE TO ALLOW AN AP OF 0.1-0.5 % IN SEEDS WAS FOUND, BUT THE GOAL REMAINS ZERO TOLERANCE. IN EARLY NOVEMBER THE MINISTRY OF AGRICULTURE GROUP ON GMOS PROPOSED A 0.01 % AP LIMIT FOR DESIGNATION OF NON-GMO SEEDS, THE CURRENT TESTING LIMIT WITH AVAILABLE ANALYTICAL TOOLS. ENVISIONED, HOWEVER, IS A DESIGNATION OF GMO FREE SEEDS, WHICH WOULD BE GUARANTEED BY THE PRODUCER, AND WOULD HAVE TO PASS TESTS OF GREATER SENSITIVITY. SUCH SEEDS WOULD BE PRODUCED IN "UNCONTAMINATED ENCLAVES" IN ITALY AND ELSEWHERE. A DECEMBER 4 CIRCULAR FROM THE MINISTRY TO SEED SUPPLIERS ASKS COMPANIES TO IDENTIFY QUANTITIES OF SOY AND CORN SEED WHICH CAN MEET THE GMO-FREE "ZERO TOLERANCE" CONFIDENTIAL CONFIDENTIAL PTQ2813 PAGE 01 ROME 06137 02 OF 03 270952Z ACTION SSO-00 INFO LOG-00 AGRE-00 ANHR-00 EB-00 E-00 TEDE-00 SS-00 STR-00 SAS-00 (E-00 TEDE-00 SAS-00 ) /000W -------------- 2104FE 070814Z /38 P 270939Z DEC 02 FM AMEMBASSY ROME TO SECSTATE WASHDC PRIORITY 7492 INFO EU MEMBER STATES COLLECTIVE AMCONSUL FLORENCE AMCONSUL MILAN AMCONSUL NAPLES C O N F I D E N T I A L SECTION 02 OF 03 ROME 006137 SIPDIS DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER STATE PASS TO USDA FAS WASHDC USDA FOR U/S PENN AND HEGWOOD STATE PASS USTR E.O. 12958: DECL: 12/24/2012 TAGS: EAGR ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV IT EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH STANDARDS FOR SPRING PLANTING. (SEE ROME 5743 FOR MORE.) ¶6. (C) EMBASSY COMMENT. WE CONTINUE TO BELIEVE THAT ALEMANNO WILL TRY TO CARVE OUT SEEDS FROM THE F&F AGREEMENTS IF HE CAN. UNLESS ALEMANNO IS BROUGHT UNDER THE CONTROL OF THE CONFIDENTIAL PAGE 02 ROME 06137 02 OF 03 270952Z PRIME MINISTER BEFORE THE EU SEEDS DIRECTIVE COMES FORTH, ITALY COULD PRESENT ITSELF AS A LEADING OPPONENT TO THE INTRODUCTION OF GM SEEDS IN EUROPE, SEEKING NATIONAL AUTHORITY TO EXCEPT ITSELF FROM EUROPEAN LEVEL DECISIONS. END COMMENT. WHY DOESN'T BERLUSCONI TAKE CONTROL? ¶7. (C) IF OUR INFORMATION IS CORRECT, AND THE MAJORITY OF THE BERLUSCONI CABINET AND THE PM HIMSELF FAVOR A CHANGE IN ITALIAN POLICY, WHY HASN'T IT HAPPENED? FOUR INTERLOCKING FACTORS ARE HAMPERING CHANGE: (1) COALITION POLITICS; (2) THE BROADER BERLUSCONI DOMESTIC AND INTERNATIONAL AGENDA; (3) THE PERCEIVED LOWER PRIORITY OF BIOTECHNOLOGY IN THE OVERALL U.S-ITALY AGENDA AS COMPARED TO A YEAR AGO; AND (4) THE LACK OF A PERCEIVED POLITICAL "UPSIDE" FOR BERLUSCONI IN SUPPORTING A POLICY CHANGE IN ITALY AND THE EU. ¶8. (C) FOR THE BERLUSCONI GOVERNMENT, AGRICULTURE MINISTER ALEMANNO IS AN IRRITANT ON BIOTECHNOLOGY, BUT HE BRINGS TO HIS PARTY (AN) AND THE COALITION A SUBSTANTIAL CONSTITUENCY: ROUGHLY 40 PERCENT OF THE NATIONAL ALLIANCE PARTY. LARGELY COMPRISED OF WORKING-CLASS POPULISTS, ALEMANNO'S CONSTITUENCY IS ALREADY RILED UP OVER LAYOFFS AND PLANT CLOSURES BY FIAT. BERLUSCONI CAN ILL-AFFORD TO FURTHER ANTAGONIZE THEM; ABSENT SOME COMPELLING INCENTIVE (OR PENALTY FOR CONTINUED INACTION),HE WON'T. ALEMANNO'S MESSAGE--THAT BIOTECHNOLOGY IS A THREAT TO QUALITY ITALIAN AGRICULTURE--APPEALS ESPECIALLY TO MANY UNSUSPECTING CONSUMERS AND SMALL RURAL FARMERS WHO DEPEND ON THE MINISTRY FOR SUPPORT AT HOME AND AT THE EU LEVEL. ALEMANNO HAS ALSO TAPPED INTO THE GREAT CONFIDENTIAL PAGE 03 ROME 06137 02 OF 03 270952Z CULTURAL AORTA OF THE ITALIAN HEART WITH HIS BASELESS CLAIMS THAT AGRICULTURAL BIOTECHNOLOGY PRODUCTS ARE "LOW QUALITY", "TASTE BAD", AND MIGHT IF INTRODUCED ALONGSIDE PURE ITALIAN PRODUCTS RESULT IN "IRREVERSIBLE GENETIC CONTAMINATION." AS LONG AS ALEMANNO'S PREACHING TO THE FAITHFUL KEEPS THEM LOYAL TO THE COALITION, BERLUSCONI IS LIKELY TO OVERLOOK THE BROADER POLICY CONSEQUENCES OF HIS MINISTER'S TACTICS. ¶9. (C) THE BERLUSCONI GOVERNMENT NEEDS STABILITY IN THE COALITION TO ACHIEVE ITS AMBITIOUS AND DIFFICULT DOMESTIC POLITICAL OBJECTIVES. RESOURCES FOR NATIONAL SECURITY AND DEFENSE MODERNIZATION ARE COMPETING WITH PUBLIC EDUCATION AND RESEARCH, PENSION COSTS, AND HEALTH CARE COSTS IN A BUDGET ENVIRONMENT THAT AFFORDS LITTLE ROOM FOR MANEUVER. PROMISES TO REDUCE TAXES, MANAGE IMMIGRATION, DEVOLVE AUTHORITIES TO REGIONAL GOVERNMENTS, AND INCREASE PUBLIC INFRASTRUCTURES ARE OTHER COMPETING CHALLENGES. ACTION ON ANY OF THESE ISSUES IS SURE TO RAISE THE HACKLES OF ONE OR MORE PARTICULAR CONSTITUENCIES; BIOTECHNOLOGY, IN CONTRAST, HAS NO GROUP OF EQUIVALENT STATURE ADVOCATING A CHANGE IN POLICY. ¶10. (C) THE POSITION OF BIOTECHNOLOGY ON THE OVERALL US.-ITALY BILATERAL AGENDA HAS FALLEN FROM NEAR THE TOP BEFORE SEPT. 11, 2001, TO A DISTINCTLY LOWER POSITION TODAY. THE REASON, CLEARLY, IS THAT PRIORITY MUST BE GIVEN TO COMBATING TERRORISM, WHETHER TERRORIST FINANCIAL NETWORKS IN ITALY OR ACTUAL TERRORIST CELLS IN AFGHANISTAN, AND SECURING STRONG ITALIAN SUPPORT FOR OUR ACTIONS AS THEY EMERGE IN IRAQ AND ELSEWHERE. HOWEVER, THE CONSEQUENCE OF THIS LOGICAL RE-PRIORITIZATION HAS BEEN TO LET BIOTECHNOLOGY BECOME A SECOND TIER--AND HENCE FOR ITALY DEFERRABLE--ISSUE. EMBASSY CONFIDENTIAL PAGE 04 ROME 06137 02 OF 03 270952Z ROME, EMBASSY VATICAN, AND FODAG, WITHIN THEIR RELEVANT CIRCLES, CONTINUE TO KEEP THE ISSUE SIMMERING ON A LIVELY BACK BURNER, BUT IT WILL TAKE A WASHINGTON DECISION AND INTERVENTIONS AT THE CABINET LEVEL TO CONVINCE THE PM AND HIS MINISTERS THAT WE WANT BIOTECHNOLOGY BACK ON THE GOI RADAR SCREEN. ¶11. (C) IF WE DO WANT BIOTECHNOLOGY TO BE TAKEN UP AGAIN BY THE GOI, WE WILL HAVE TO ADDRESS THE LAST OF THE FOUR QUESTIONS POSED IN PARA 7, I.E. TO SHOW BERLUSCONI WHAT'S IN IT FOR HIM IF HE WERE TO PRESS FOR A POLICY SHIFT ON BIOTECH. WE SEE TWO POSSIBILITIES FOR DOING THIS: --CONVINCING THE PRIME MINISTER THAT ITALIAN AND EU POLICIES ON BIOTECHNOLOGY ARE DOING GREAT HARM TO INTERNATIONAL ASSISTANCE EFFORTS TO AVERT FAMINE IN SOUTHERN AFRICA, AND IMPEDING ECONOMIC GROWTH IN THE DEVELOPING WORLD; --CONVINCING THE PRIME MINISTER THAT THE U.S. WITH PARTNERS WILL FILE A CASE IN THE WTO AGAINST THE EU OVER ITS CONFIDENTIAL CONFIDENTIAL PTQ1991 PAGE 01 ROME 06137 02 OF 03 091033Z ACTION SSO-00 INFO LOG-00 COR-01 AGRE-00 AMAD-00 ANHR-00 EB-00 EUR-00 E-00 TEDE-00 OES-00 SS-00 STR-00 T-00 SAS-00 /001W -------------- 225D2F 091033Z /38 P 270939Z DEC 02 FM AMEMBASSY ROME TO SECSTATE WASHDC PRIORITY 7492 INFO EU MEMBER STATES COLLECTIVE AMCONSUL FLORENCE AMCONSUL MILAN AMCONSUL NAPLES C O N F I D E N T I A L SECTION 02 OF 03 ROME 006137 SIPDIS C O R R E C T E D - COPY (ADDED ADDRESSEE(S)) DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER DEPT FOR EUR DEPT FOR EB DEPT FOR OES STATE PASS TO USDA FAS WASHDC USDA FOR U/S PENN AND HEGWOOD STATE PASS USTR E.O. 12958: DECL: 12/24/2012 TAGS: EAGR ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV IT EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH CONFIDENTIAL PAGE 02 ROME 06137 02 OF 03 091033Z STANDARDS FOR SPRING PLANTING. (SEE ROME 5743 FOR MORE.) ¶6. (C) EMBASSY COMMENT. WE CONTINUE TO BELIEVE THAT ALEMANNO WILL TRY TO CARVE OUT SEEDS FROM THE F&F AGREEMENTS IF HE CAN. UNLESS ALEMANNO IS BROUGHT UNDER THE CONTROL OF THE PRIME MINISTER BEFORE THE EU SEEDS DIRECTIVE COMES FORTH, ITALY COULD PRESENT ITSELF AS A LEADING OPPONENT TO THE INTRODUCTION OF GM SEEDS IN EUROPE, SEEKING NATIONAL AUTHORITY TO EXCEPT ITSELF FROM EUROPEAN LEVEL DECISIONS. END COMMENT. WHY DOESN'T BERLUSCONI TAKE CONTROL? ¶7. (C) IF OUR INFORMATION IS CORRECT, AND THE MAJORITY OF THE BERLUSCONI CABINET AND THE PM HIMSELF FAVOR A CHANGE IN ITALIAN POLICY, WHY HASN'T IT HAPPENED? FOUR INTERLOCKING FACTORS ARE HAMPERING CHANGE: (1) COALITION POLITICS; (2) THE BROADER BERLUSCONI DOMESTIC AND INTERNATIONAL AGENDA; (3) THE PERCEIVED LOWER PRIORITY OF BIOTECHNOLOGY IN THE OVERALL U.S-ITALY AGENDA AS COMPARED TO A YEAR AGO; AND (4) THE LACK OF A PERCEIVED POLITICAL "UPSIDE" FOR BERLUSCONI IN SUPPORTING A POLICY CHANGE IN ITALY AND THE EU. ¶8. (C) FOR THE BERLUSCONI GOVERNMENT, AGRICULTURE MINISTER ALEMANNO IS AN IRRITANT ON BIOTECHNOLOGY, BUT HE BRINGS TO HIS PARTY (AN) AND THE COALITION A SUBSTANTIAL CONSTITUENCY: ROUGHLY 40 PERCENT OF THE NATIONAL ALLIANCE PARTY. LARGELY COMPRISED OF WORKING-CLASS POPULISTS, ALEMANNO'S CONSTITUENCY IS ALREADY RILED UP OVER LAYOFFS AND PLANT CLOSURES BY FIAT. BERLUSCONI CAN ILL-AFFORD TO FURTHER ANTAGONIZE THEM; ABSENT CONFIDENTIAL PAGE 03 ROME 06137 02 OF 03 091033Z SOME COMPELLING INCENTIVE (OR PENALTY FOR CONTINUED INACTION),HE WON'T. ALEMANNO'S MESSAGE--THAT BIOTECHNOLOGY IS A THREAT TO QUALITY ITALIAN AGRICULTURE--APPEALS ESPECIALLY TO MANY UNSUSPECTING CONSUMERS AND SMALL RURAL FARMERS WHO DEPEND ON THE MINISTRY FOR SUPPORT AT HOME AND AT THE EU LEVEL. ALEMANNO HAS ALSO TAPPED INTO THE GREAT CULTURAL AORTA OF THE ITALIAN HEART WITH HIS BASELESS CLAIMS THAT AGRICULTURAL BIOTECHNOLOGY PRODUCTS ARE "LOW QUALITY", "TASTE BAD", AND MIGHT IF INTRODUCED ALONGSIDE PURE ITALIAN PRODUCTS RESULT IN "IRREVERSIBLE GENETIC CONTAMINATION." AS LONG AS ALEMANNO'S PREACHING TO THE FAITHFUL KEEPS THEM LOYAL TO THE COALITION, BERLUSCONI IS LIKELY TO OVERLOOK THE BROADER POLICY CONSEQUENCES OF HIS MINISTER'S TACTICS. ¶9. (C) THE BERLUSCONI GOVERNMENT NEEDS STABILITY IN THE COALITION TO ACHIEVE ITS AMBITIOUS AND DIFFICULT DOMESTIC POLITICAL OBJECTIVES. RESOURCES FOR NATIONAL SECURITY AND DEFENSE MODERNIZATION ARE COMPETING WITH PUBLIC EDUCATION AND RESEARCH, PENSION COSTS, AND HEALTH CARE COSTS IN A BUDGET ENVIRONMENT THAT AFFORDS LITTLE ROOM FOR MANEUVER. PROMISES TO REDUCE TAXES, MANAGE IMMIGRATION, DEVOLVE AUTHORITIES TO REGIONAL GOVERNMENTS, AND INCREASE PUBLIC INFRASTRUCTURES ARE OTHER COMPETING CHALLENGES. ACTION ON ANY OF THESE ISSUES IS SURE TO RAISE THE HACKLES OF ONE OR MORE PARTICULAR CONSTITUENCIES; BIOTECHNOLOGY, IN CONTRAST, HAS NO GROUP OF EQUIVALENT STATURE ADVOCATING A CHANGE IN POLICY. ¶10. (C) THE POSITION OF BIOTECHNOLOGY ON THE OVERALL US.-ITALY BILATERAL AGENDA HAS FALLEN FROM NEAR THE TOP BEFORE SEPT. 11, 2001, TO A DISTINCTLY LOWER POSITION TODAY. THE REASON, CLEARLY, IS THAT PRIORITY MUST BE GIVEN TO CONFIDENTIAL PAGE 04 ROME 06137 02 OF 03 091033Z COMBATING TERRORISM, WHETHER TERRORIST FINANCIAL NETWORKS IN ITALY OR ACTUAL TERRORIST CELLS IN AFGHANISTAN, AND SECURING STRONG ITALIAN SUPPORT FOR OUR ACTIONS AS THEY EMERGE IN IRAQ AND ELSEWHERE. HOWEVER, THE CONSEQUENCE OF THIS LOGICAL RE-PRIORITIZATION HAS BEEN TO LET BIOTECHNOLOGY BECOME A SECOND TIER--AND HENCE FOR ITALY DEFERRABLE--ISSUE. EMBASSY ROME, EMBASSY VATICAN, AND FODAG, WITHIN THEIR RELEVANT CIRCLES, CONTINUE TO KEEP THE ISSUE SIMMERING ON A LIVELY BACK BURNER, BUT IT WILL TAKE A WASHINGTON DECISION AND INTERVENTIONS AT THE CABINET LEVEL TO CONVINCE THE PM AND HIS MINISTERS THAT WE WANT BIOTECHNOLOGY BACK ON THE GOI RADAR SCREEN. ¶11. (C) IF WE DO WANT BIOTECHNOLOGY TO BE TAKEN UP AGAIN BY THE GOI, WE WILL HAVE TO ADDRESS THE LAST OF THE FOUR QUESTIONS POSED IN PARA 7, I.E. TO SHOW BERLUSCONI WHAT'S IN IT FOR HIM IF HE WERE TO PRESS FOR A POLICY SHIFT ON BIOTECH. WE SEE TWO POSSIBILITIES FOR DOING THIS: --CONVINCING THE PRIME MINISTER THAT ITALIAN AND EU POLICIES ON BIOTECHNOLOGY ARE DOING GREAT HARM TO INTERNATIONAL ASSISTANCE EFFORTS TO AVERT FAMINE IN SOUTHERN AFRICA, AND IMPEDING ECONOMIC GROWTH IN THE DEVELOPING WORLD; --CONVINCING THE PRIME MINISTER THAT THE U.S. WITH PARTNERS WILL FILE A CASE IN THE WTO AGAINST THE EU OVER ITS CONFIDENTIAL CONFIDENTIAL PTQ1997 PAGE 01 ROME 06137 03 OF 03 091033Z ACTION SSO-00 INFO LOG-00 COR-01 AGRE-00 AMAD-00 ANHR-00 EB-00 EUR-00 E-00 TEDE-00 OES-00 SS-00 STR-00 T-00 SAS-00 /001W -------------- 225D59 091033Z /38 P 270939Z DEC 02 FM AMEMBASSY ROME TO SECSTATE WASHDC PRIORITY 7493 INFO EU MEMBER STATES COLLECTIVE AMCONSUL FLORENCE AMCONSUL MILAN AMCONSUL NAPLES C O N F I D E N T I A L SECTION 03 OF 03 ROME 006137 SIPDIS C O R R E C T E D - COPY (ADDED ADDRESSEE(S)) DEPT. FOR U/S LARSON FROM AMBASSADOR SEMBLER DEPT FOR EUR DEPT FOR EB DEPT FOR OES STATE PASS TO USDA FAS WASHDC USDA FOR U/S PENN AND HEGWOOD STATE PASS USTR E.O. 12958: DECL: 12/24/2012 TAGS: EAGR ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV ETRD TBIO KSCA TSPL PGOV IT EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN ITEAGR EUN SUBJECT: WHY PM BERLUSCONI WON'T MOVE FORWARD ON BIOTECH CONFIDENTIAL PAGE 02 ROME 06137 03 OF 03 091033Z ILLEGAL MORATORIUM, THEREBY CREATING AN OPENING FOR THE GOI TO LEAD EUROPE TO A SOLUTION THAT WOULD AVOID A FULL FLEDGED TRADE DISPUTE. THE U.S. AND THE EU -- TRADE AND TECHNOLOGY TRADEOFFS ¶12. (C) TO MOVE THE GOI IN THE RIGHT DIRECTION ON BIOTECH WILL REQUIRE BOTH A TOP-DOWN STRATEGY SUPPORTED BY WASHINGTON, AND A BOTTOM-UP STRATEGY WITHIN ITALY. WITH RESPECT TO THE LATTER, WE WILL CONTINUE OUR WORK WITH IMPORTANT CONSTITUENT GROUPS LIKE THE ACADEMIC COMMUNITY, FARMERS AND THEIR ASSOCIATIONS, CONSUMERS AND CONSUMER ORGANIZATIONS, EDUCATORS, AND THE MEDIA TO BETTER INFORM PUBLIC DEBATE AND GAIN WIDER RECOGNITION OF THE LOW RISKS AND HIGH BENEFITS OF BIOTECHNOLOGY FOR FARMERS AND CONSUMERS. ULTIMATELY, HOWEVER, BERLUSCONI HIMSELF MUST CROSS THE RUBICON, AND LEAVE HIS AG MINISTER BEHIND IF ALEMANNO CANNOT OR WILL NOT ACCEPT CHANGES IN ITALIAN POLICY. THE TRICK WILL BE TO OVERRULE OR NEUTRALIZE ALEMANNO WITHOUT ALIENATING HIS SUPPORTERS OR FRACTURING HIS COALITION -- A DIFFICULT TASK IN A POLITICAL CULTURE BASED ON CONSENSUS. ¶13. (C) WE CAN AT BEST CHANGE THE POLITICAL TERRAIN THE GOI LOOKS AT WHEN IT CONSIDERS THE ACCEPTABILITY OF POLICY CHANGE. COORDINATED EFFORT FROM WASHINGTON WILL BE REQUIRED IN THE MONTHS AHEAD IF WE ARE TO HAVE ANY CHANCE OF SECURING GOI LEADERSHIP ON BIOTECHNOLOGY DURING ITS EU PRESIDENCY. WE KNOW THAT THE PM IS CONCERNED ABOUT, AND WOULD LIKE TO AVOID, A WTO CASE ON HIS EU WATCH, AND THIS MAY GIVE US LEVERAGE ON THE ISSUE. USEU HAS POINTED OUT THAT A WTO CASE CONFIDENTIAL PAGE 03 ROME 06137 03 OF 03 091033Z COULD GIVE ANTI-BIOTECH POLITICIANS IN MEMBER STATES LIKE ITALY THE OPPORTUNITY TO PROCLAIM THAT THE BIOTECHNOLOGY DEBATE HAS ALWAYS BEEN ABOUT GETTING U.S. PRODUCT INTO EU MARKETS, AND THAT ALL THE TALK ABOUT WISE DEPLOYMENT OF THE TECHNOLOGY WAS JUST A RUSE. ON THE OTHER HAND, OUR PRINCIPAL CONTACT AT THE MINISTRY OF ENVIRONMENT HAS SUGGESTED THAT A WTO CASE MIGHT BE THE ONLY WAY TO RAISE THE ATTENTION OF EU MEMBER STATES. THIS OFFICIAL FURTHER SUGGESTS THAT A WELL THOUGHT OUT CONSULTATIONS PERIOD COULD PROVE USEFUL IN ITALY BECAUSE IT WOULD ENGAGE THE FOREIGN AFFAIRS ELEMENTS OF THE ITALIAN GOVERNMENT IN THE PROBLEM. VICE MINISTER OF FOREIGN TRADE URSO IS ALREADY EMERGING AS A VOCAL AND PUBLIC OPPONENT OF AG MINISTER ALEMANNO, AND A WTO "THEATER" MIGHT USEFULLY AMPLIFY HIS INFLUENCE. ¶14. (C) EMBASSY RECOMMENDATION: WHETHER OR NOT WASHINGTON DECIDES TO PURSUE A CASE IN THE WTO, WE RECOMMEND TESTING THE LIMITS OF THE GOI'S ABILITY TO PLAY A CONSTRUCTIVE ROLE ON BIOTECH DURING ITS EU PRESIDENCY DURING THE SECOND HALF OF ¶2003. SPECIFICALLY, WE RECOMMEND A MARCH VISIT BY A HIGH LEVEL USTR-STATE-USDA TEAM TO RAISE THE PROFILE OF BIOTECH ON OUR BILATERAL AGENDA AND PRESS FOR IMPROVEMENTS IN LONGSTANDING IRRITANTS, SUCH AS THE AMATO DECREE, IN ADVANCE OF ITALY'S ASSUMING THE EU PRESIDENCY. WE WERE TOLD BY THE MINISTRY OF ENVIRONMENT ON DECEMBER 4 THAT ITALY MAY HOLD A EUROPEAN LEVEL CONFERENCE ON BIOTECHNOLOGY DURING ITS PRESIDENCY, WHICH SUGGESTS A TIMELY USG VISIT COULD BE PRODUCTIVE. SEMBLER