Identifier
Created
Classification
Origin
03ROME395
2003-01-31 16:16:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Rome
Cable title:  

WTO VIEWS ON BIOTECH ENGINEERED FOOD AID

Tags:  EAID EAGR AORC PREF EU WFP UN EUEAID 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 03 OF 04 ROME 000395 

SIPDIS

FROM U.S. MISSION IN ROME

SENSITIVE

STATE FOR EB HANS KLEMM AND IO/EDA KOTOK
STATE PLEASE PASS TO US TRADE REPRESENTATIVE
USAID FOR D/DCHA/FFP LANDIS AND GLOBAL JLEWIS
USDA/FAS FOR MCHAMBLISS/RTILSWORTH
USUN NEW YORK FOR CSERWER
UNCLASSIFIED

PAGE 02 ROME 00395 03 OF 04 010832Z
USTR FOR RICHARD WHITE
BRUSSELS FOR USAID PLERNER
NSC FOR JDWORKEN
E.O. 12958: N/A
TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EU WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN
SUBJECT: WTO VIEWS ON BIOTECH ENGINEERED FOOD AID

WITH RESPECT TO OPTION 1, (TO CONTINUE WFP POLICY OF
ALLOWING EACH COUNTRY TO DECIDE WHETHER OR NOT IT WISHES TO
ACCEPT BIOTECH FOOD) AS INDICATED ABOVE, THERE ARE NO WTO
DISPUTE SETTLEMENT RULINGS NOR IS THERE A CONSENSUS AMONG
MEMBERS REGARDING HOW THE WTO AGREEMENTS APPLY TO TRADE IN
GM/BIOTECH FOODS. FURTHERMORE, WHILE WE ASSUME THAT WFP
WOULD UNDERSTANDABLY WISH TO AVOID ANY POLICY WHICH MIGHT
ENCOURAGE WTO MEMBERS TO VIOLATE THEIR OBLIGATIONS UNDER WTO
AGREEMENTS, WE CAN GIVE YOU NO GUIDANCE AT THIS TIME AS TO
HOW FUTURE WTO PANELS MIGHT RULE ON THIS MATTER.
CONSEQUENTLY, A CONTINUATION OF THE CURRENT WFP POLICY
WHEREBY EACH COUNTRY DETERMINES WHETHER OR NOT IT WISHES TO
ACCEPT GM/BIOTECH FOODS, MAY OR MAY NOT HAVE WTO
IMPLICATIONS IN THE FUTURE, BUT THAT IS NO DIFFERENT THAT
THE CURRENT SITUATION.

WITH RESPECT TO OPTION 2, (WFP INSTITUTES A PRIOR INFORMED
CONSENT PROCEDURE OF SOME TYPE AND LABELS ALL FOOD DONATED
IN KIND OR PURCHASED WHICH MAY BE GM/BIOTECH) THE ISSUE OF
LABELING OF GM/BIOTECH FOODS IS THE SUBJECT OF ON-GOING
DISCUSSIONS AND SUBSTANTIAL DISAGREEMENTS AMONG WTO MEMBERS.
IT MAY WELL BE THAT WFP EFFORTS TO DEVELOP LABELING
REQUIREMENTS AND A PRIOR INFORMED CONSENT PROCEDURE WOULD
GIVE RISE TO SIMILAR DISAGREEMENTS AMONG ITS MEMBERS.
UNCLASSIFIED

PAGE 03 ROME 00395 03 OF 04 010832Z

AS FOR OPTION 3, (NOTE: WHERE WFP WOULD IMPOSE THE
PROVISIONS OF THE CARTAGENA PROTOCOL WITH IMMEDIATE EFFECT
ON ALL ITS FOOD AID OPERATIONS - END NOTE),THE CARTAGENA
PROTOCOL MAY ENTER INTO FORCE DURING 2003 AND WORK AIMED AT
THE DEVELOPMENT OF SPECIFIC PROCEDURES WITH REGARD TO THE
IDENTIFICATION OF POTENTIAL GM CONTENT IN SHIPMENTS OF FOOD,
FEED AND PROCESSES FOOD PRODUCTS HAS BEEN INITIATED.
ACCORDING TO ARTICLE 18.2(A) OF THE PROTOCOL, THE PARTIES
WILL HAVE UP TO TWO YEARS AFTER THE ENTRY INTO FORCE OF THE
PROTOCOL TO DEVELOP SUCH PROCEDURES. WE ARE NOT IN A
POSITION TO PREDICT HOW LONG IT MAY TAKE FOR SUCH DETAILED
PROCEDURES TO BE DEVELOPED AND TO BECOME OPERATIONAL. IF,
UNDER OPTION 3, THE WFP WERE TO DEVELOP SOMETHING OTHER THAN
THE FINAL SPECIFIC PROCEDURES DEVELOPED BY THE CARTAGENA
PROTOCOL, IT COULD CREATE CONSIDERABLE CONFUSION AND
POTENTIAL DUPLICATION OF MEASURES. FURTHERMORE, IT IS
CONCEIVABLE THAT AN IMPORTING COUNTRY, ALTHOUGH A SIGNATORY
TO THE CARTAGENA PROTOCOL, MIGHT CHOOSE NOT TO APPLY ITS
PROVISIONS FULLY WHEN FACED WITH AN URGENT NEED FOR FOOD
AID. FINALLY, THE PROBLEM OF FOOD AID TRANSACTIONS BETWEEN
A NON-SIGNATORY AND SIGNATORY COUNTRY WOULD STILL ARISE.

TO SUMMARIZE, I BELIEVE THAT A CONTINUATION OF THE CURRENT
WFP POLICY WOULD NOT CHANGE THE CURRENT SITUATION WITH
RESPECT TO THE POSSIBLE IMPLICATIONS FOR WTO MEMBERS'
OBLIGATIONS WITH RESPECT TO TRADE IN GM/BIOTECH FOODS AND
WOULD ALSO SEEM TO BE THE MOST PRAGMATIC OPTION FOR THE
FORESEEABLE FUTURE.

LET ME REITERATE MY APPRECIATION AT BEING CONSULTED
UNCLASSIFIED

PAGE 04 ROME 00395 03 OF 04 010832Z
REGARDING THIS MATTER. TRADE IN GM/BIOTECH PRODUCTS IS
INCREASINGLY CONTROVERSIAL AND SENSITIVE. CONSULTATIONS AND
CAREFUL COOPERATION AMONG ALL INTERNATIONAL ORGANIZATIONS
INVOLVED IN THIS MATTER COULD HELP AVOID POTENTIAL CONFLICTS
WHICH MAY HAVE SERIOUS CONSEQUENCES FOR THE MOST
DISADVANTAGED PEOPLES OF THE WORLD. WITH MY BEST REGARDS,
(SIGNED) DR. SUPACHAI PANITCHPAKDI. END TEXT OF WTO LETTER.

-------
COMMENT
-------


3. (SBU) CLEARLY WTO AGREES WITH WFP'S PRESENT POSITION OF
ESSENTIALLY ACTING AS A BROKER IN FOOD AID SHIPMENTS, WHERE
THE POLICIES OF THE GOVERNMENTS INVOLVED PREVAILS; AND WHERE
WFP OPERATES ON THE ASSUMPTION THAT GOVERNMENTS EXERCISE DUE
DILIGENCE IN SETTING NATIONAL REGULATIONS WITH REGARD TO
EXPORTS AND IMPORTS OF FOOD. THE EC HAS A DIFFERENT VIEW
WHEREBY WFP SHOULD SERVE AS A "STALKING HORSE" AS A "FRONT-

UNCLASSIFIED

UNCLASSIFIED PTQ2992

PAGE 01 ROME 00395 04 OF 04 010832Z
ACTION EB-00

INFO LOG-00 AGRE-00 AID-00 EAP-00 EUR-00 UTED-00 TEDE-00
IO-00 OIC-02 STR-00 TEST-00 PRM-00 SAS-00 /002W
------------------2F6145 010832Z /25
P 311616Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 7942
INFO EU MEMBER STATES COLLECTIVE
AMEMBASSY OTTAWA
AMEMBASSY BERN
USDA FAS WASHDC 2488
USEU BRUSSELS 3092
USMISSION GENEVA
USMISSION USUN NEW YORK
AMEMBASSY TOKYO

UNCLAS SECTION 04 OF 04 ROME 000395

SIPDIS

FROM U.S. MISSION IN ROME

SENSITIVE

STATE FOR EB HANS KLEMM AND IO/EDA KOTOK
STATE PLEASE PASS TO US TRADE REPRESENTATIVE
USAID FOR D/DCHA/FFP LANDIS AND GLOBAL JLEWIS
USDA/FAS FOR MCHAMBLISS/RTILSWORTH
USUN NEW YORK FOR CSERWER
UNCLASSIFIED

PAGE 02 ROME 00395 04 OF 04 010832Z
USTR FOR RICHARD WHITE
BRUSSELS FOR USAID PLERNER
NSC FOR JDWORKEN
E.O. 12958: N/A
TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EU WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN
SUBJECT: WTO VIEWS ON BIOTECH ENGINEERED FOOD AID

LINE ENFORCER" OF THE CARTAGENA PROTOCOL. IT IS INTERESTING
THAT WTO NOTES THAT THE PROTOCOL WHEN RATIFIED (WHICH
CURRENTLY HAS 41 SIGNERS AND NEEDS 50 TO GO INTO EFFECT),
RECOGNIZES THAT THE PARTIES WILL HAVE UP TO TWO YEARS AFTER
THE ENTRY INTO FORCE OF THE PROTOCOL TO DEVELOP SPECIFIC
PROCEDURES WITH REGARD TO THE IDENTIFICATION OF POTENTIAL GM
CONTENT IN SHIPMENTS OF FOOD, FEED AND PROCESSES FOOD
PRODUCTS. US MISSION STRONGLY SUPPORTS WTO'S "QUIET ADVICE"
THAT WFP STICK WITH ITS PRESENT GM-FOOD AID POLICY. HALL

UNCLASSIFIED

>
@@@OASYS@@@

UNCLASSIFIED PTQ2989

PAGE 01 ROME 00395 01 OF 04 010828Z
ACTION EB-00

INFO LOG-00 AGRE-00 AID-00 EAP-00 EUR-00 UTED-00 TEDE-00
IO-00 OIC-02 STR-00 TEST-00 PRM-00 SAS-00 /002W
------------------2F6126 010828Z /25
P 311616Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 7939
INFO EU MEMBER STATES COLLECTIVE
AMEMBASSY OTTAWA
AMEMBASSY BERN
USDA FAS WASHDC 2485
USEU BRUSSELS 3089
USMISSION GENEVA
USMISSION USUN NEW YORK
AMEMBASSY TOKYO

UNCLAS SECTION 01 OF 04 ROME 000395

SIPDIS

FROM U.S. MISSION IN ROME

SENSITIVE

STATE FOR EB HANS KLEMM AND IO/EDA KOTOK
STATE PLEASE PASS TO US TRADE REPRESENTATIVE
USAID FOR D/DCHA/FFP LANDIS AND GLOBAL JLEWIS
USDA/FAS FOR MCHAMBLISS/RTILSWORTH
USUN NEW YORK FOR CSERWER
UNCLASSIFIED

PAGE 02 ROME 00395 01 OF 04 010828Z
USTR FOR RICHARD WHITE
BRUSSELS FOR USAID PLERNER
NSC FOR JDWORKEN
E.O. 12958: N/A
TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EU WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN
SUBJECT: WTO VIEWS ON BIOTECH ENGINEERED FOOD AID

REF: (02) ROME 5226

SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY.
UNCLAS SECTION 03 OF 04 ROME 000395

SIPDIS

FROM U.S. MISSION IN ROME

SENSITIVE

STATE FOR EB HANS KLEMM AND IO/EDA KOTOK
STATE PLEASE PASS TO US TRADE REPRESENTATIVE
USAID FOR D/DCHA/FFP LANDIS AND GLOBAL JLEWIS
USDA/FAS FOR MCHAMBLISS/RTILSWORTH
USUN NEW YORK FOR CSERWER
UNCLASSIFIED

PAGE 02 ROME 00395 03 OF 04 010832Z
USTR FOR RICHARD WHITE
BRUSSELS FOR USAID PLERNER
NSC FOR JDWORKEN
E.O. 12958: N/A
TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EU WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN
SUBJECT: WTO VIEWS ON BIOTECH ENGINEERED FOOD AID

WITH RESPECT TO OPTION 1, (TO CONTINUE WFP POLICY OF
ALLOWING EACH COUNTRY TO DECIDE WHETHER OR NOT IT WISHES TO
ACCEPT BIOTECH FOOD) AS INDICATED ABOVE, THERE ARE NO WTO
DISPUTE SETTLEMENT RULINGS NOR IS THERE A CONSENSUS AMONG
MEMBERS REGARDING HOW THE WTO AGREEMENTS APPLY TO TRADE IN
GM/BIOTECH FOODS. FURTHERMORE, WHILE WE ASSUME THAT WFP
WOULD UNDERSTANDABLY WISH TO AVOID ANY POLICY WHICH MIGHT
ENCOURAGE WTO MEMBERS TO VIOLATE THEIR OBLIGATIONS UNDER WTO
AGREEMENTS, WE CAN GIVE YOU NO GUIDANCE AT THIS TIME AS TO
HOW FUTURE WTO PANELS MIGHT RULE ON THIS MATTER.
CONSEQUENTLY, A CONTINUATION OF THE CURRENT WFP POLICY
WHEREBY EACH COUNTRY DETERMINES WHETHER OR NOT IT WISHES TO
ACCEPT GM/BIOTECH FOODS, MAY OR MAY NOT HAVE WTO
IMPLICATIONS IN THE FUTURE, BUT THAT IS NO DIFFERENT THAT
THE CURRENT SITUATION.

WITH RESPECT TO OPTION 2, (WFP INSTITUTES A PRIOR INFORMED

CONSENT PROCEDURE OF SOME TYPE AND LABELS ALL FOOD DONATED
IN KIND OR PURCHASED WHICH MAY BE GM/BIOTECH) THE ISSUE OF
LABELING OF GM/BIOTECH FOODS IS THE SUBJECT OF ON-GOING
DISCUSSIONS AND SUBSTANTIAL DISAGREEMENTS AMONG WTO MEMBERS.
IT MAY WELL BE THAT WFP EFFORTS TO DEVELOP LABELING
REQUIREMENTS AND A PRIOR INFORMED CONSENT PROCEDURE WOULD
GIVE RISE TO SIMILAR DISAGREEMENTS AMONG ITS MEMBERS.
UNCLASSIFIED

PAGE 03 ROME 00395 03 OF 04 010832Z

AS FOR OPTION 3, (NOTE: WHERE WFP WOULD IMPOSE THE
PROVISIONS OF THE CARTAGENA PROTOCOL WITH IMMEDIATE EFFECT
ON ALL ITS FOOD AID OPERATIONS - END NOTE),THE CARTAGENA
PROTOCOL MAY ENTER INTO FORCE DURING 2003 AND WORK AIMED AT
THE DEVELOPMENT OF SPECIFIC PROCEDURES WITH REGARD TO THE
IDENTIFICATION OF POTENTIAL GM CONTENT IN SHIPMENTS OF FOOD,
FEED AND PROCESSES FOOD PRODUCTS HAS BEEN INITIATED.
ACCORDING TO ARTICLE 18.2(A) OF THE PROTOCOL, THE PARTIES
WILL HAVE UP TO TWO YEARS AFTER THE ENTRY INTO FORCE OF THE
PROTOCOL TO DEVELOP SUCH PROCEDURES. WE ARE NOT IN A
POSITION TO PREDICT HOW LONG IT MAY TAKE FOR SUCH DETAILED
PROCEDURES TO BE DEVELOPED AND TO BECOME OPERATIONAL. IF,
UNDER OPTION 3, THE WFP WERE TO DEVELOP SOMETHING OTHER THAN
THE FINAL SPECIFIC PROCEDURES DEVELOPED BY THE CARTAGENA
PROTOCOL, IT COULD CREATE CONSIDERABLE CONFUSION AND
POTENTIAL DUPLICATION OF MEASURES. FURTHERMORE, IT IS
CONCEIVABLE THAT AN IMPORTING COUNTRY, ALTHOUGH A SIGNATORY
TO THE CARTAGENA PROTOCOL, MIGHT CHOOSE NOT TO APPLY ITS
PROVISIONS FULLY WHEN FACED WITH AN URGENT NEED FOR FOOD
AID. FINALLY, THE PROBLEM OF FOOD AID TRANSACTIONS BETWEEN
A NON-SIGNATORY AND SIGNATORY COUNTRY WOULD STILL ARISE.

TO SUMMARIZE, I BELIEVE THAT A CONTINUATION OF THE CURRENT
WFP POLICY WOULD NOT CHANGE THE CURRENT SITUATION WITH
RESPECT TO THE POSSIBLE IMPLICATIONS FOR WTO MEMBERS'
OBLIGATIONS WITH RESPECT TO TRADE IN GM/BIOTECH FOODS AND
WOULD ALSO SEEM TO BE THE MOST PRAGMATIC OPTION FOR THE
FORESEEABLE FUTURE.

LET ME REITERATE MY APPRECIATION AT BEING CONSULTED
UNCLASSIFIED

PAGE 04 ROME 00395 03 OF 04 010832Z
REGARDING THIS MATTER. TRADE IN GM/BIOTECH PRODUCTS IS
INCREASINGLY CONTROVERSIAL AND SENSITIVE. CONSULTATIONS AND
CAREFUL COOPERATION AMONG ALL INTERNATIONAL ORGANIZATIONS
INVOLVED IN THIS MATTER COULD HELP AVOID POTENTIAL CONFLICTS
WHICH MAY HAVE SERIOUS CONSEQUENCES FOR THE MOST
DISADVANTAGED PEOPLES OF THE WORLD. WITH MY BEST REGARDS,
(SIGNED) DR. SUPACHAI PANITCHPAKDI. END TEXT OF WTO LETTER.

--------------
COMMENT
--------------


3. (SBU) CLEARLY WTO AGREES WITH WFP'S PRESENT POSITION OF
ESSENTIALLY ACTING AS A BROKER IN FOOD AID SHIPMENTS, WHERE
THE POLICIES OF THE GOVERNMENTS INVOLVED PREVAILS; AND WHERE
WFP OPERATES ON THE ASSUMPTION THAT GOVERNMENTS EXERCISE DUE
DILIGENCE IN SETTING NATIONAL REGULATIONS WITH REGARD TO
EXPORTS AND IMPORTS OF FOOD. THE EC HAS A DIFFERENT VIEW
WHEREBY WFP SHOULD SERVE AS A "STALKING HORSE" AS A "FRONT-

UNCLASSIFIED

UNCLASSIFIED PTQ2992

PAGE 01 ROME 00395 04 OF 04 010832Z
ACTION EB-00

INFO LOG-00 AGRE-00 AID-00 EAP-00 EUR-00 UTED-00 TEDE-00
IO-00 OIC-02 STR-00 TEST-00 PRM-00 SAS-00 /002W
-------------- 2F6145 010832Z /25
P 311616Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 7942
INFO EU MEMBER STATES COLLECTIVE
AMEMBASSY OTTAWA
AMEMBASSY BERN
USDA FAS WASHDC 2488
USEU BRUSSELS 3092
USMISSION GENEVA
USMISSION USUN NEW YORK
AMEMBASSY TOKYO

UNCLAS SECTION 04 OF 04 ROME 000395

SIPDIS

FROM U.S. MISSION IN ROME

SENSITIVE

STATE FOR EB HANS KLEMM AND IO/EDA KOTOK
STATE PLEASE PASS TO US TRADE REPRESENTATIVE
USAID FOR D/DCHA/FFP LANDIS AND GLOBAL JLEWIS
USDA/FAS FOR MCHAMBLISS/RTILSWORTH
USUN NEW YORK FOR CSERWER
UNCLASSIFIED

PAGE 02 ROME 00395 04 OF 04 010832Z
USTR FOR RICHARD WHITE
BRUSSELS FOR USAID PLERNER
NSC FOR JDWORKEN
E.O. 12958: N/A
TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EU WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN
SUBJECT: WTO VIEWS ON BIOTECH ENGINEERED FOOD AID

LINE ENFORCER" OF THE CARTAGENA PROTOCOL. IT IS INTERESTING
THAT WTO NOTES THAT THE PROTOCOL WHEN RATIFIED (WHICH
CURRENTLY HAS 41 SIGNERS AND NEEDS 50 TO GO INTO EFFECT),
RECOGNIZES THAT THE PARTIES WILL HAVE UP TO TWO YEARS AFTER
THE ENTRY INTO FORCE OF THE PROTOCOL TO DEVELOP SPECIFIC
PROCEDURES WITH REGARD TO THE IDENTIFICATION OF POTENTIAL GM
CONTENT IN SHIPMENTS OF FOOD, FEED AND PROCESSES FOOD
PRODUCTS. US MISSION STRONGLY SUPPORTS WTO'S "QUIET ADVICE"
THAT WFP STICK WITH ITS PRESENT GM-FOOD AID POLICY. HALL

UNCLASSIFIED

>
@@@OASYS@@@

UNCLASSIFIED PTQ2989

PAGE 01 ROME 00395 01 OF 04 010828Z
ACTION EB-00

INFO LOG-00 AGRE-00 AID-00 EAP-00 EUR-00 UTED-00 TEDE-00
IO-00 OIC-02 STR-00 TEST-00 PRM-00 SAS-00 /002W
-------------- 2F6126 010828Z /25
P 311616Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 7939
INFO EU MEMBER STATES COLLECTIVE
AMEMBASSY OTTAWA
AMEMBASSY BERN
USDA FAS WASHDC 2485
USEU BRUSSELS 3089
USMISSION GENEVA
USMISSION USUN NEW YORK
AMEMBASSY TOKYO

UNCLAS SECTION 01 OF 04 ROME 000395

SIPDIS

FROM U.S. MISSION IN ROME

SENSITIVE

STATE FOR EB HANS KLEMM AND IO/EDA KOTOK
STATE PLEASE PASS TO US TRADE REPRESENTATIVE
USAID FOR D/DCHA/FFP LANDIS AND GLOBAL JLEWIS
USDA/FAS FOR MCHAMBLISS/RTILSWORTH
USUN NEW YORK FOR CSERWER
UNCLASSIFIED

PAGE 02 ROME 00395 01 OF 04 010828Z
USTR FOR RICHARD WHITE
BRUSSELS FOR USAID PLERNER
NSC FOR JDWORKEN
E.O. 12958: N/A
TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EU WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN
SUBJECT: WTO VIEWS ON BIOTECH ENGINEERED FOOD AID

REF: (02) ROME 5226

SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY.

1. (SBU) SUMMARY. MISSION HAS BEEN PROVIDED A COPY OF
CORRESPONDENCE BETWEEN THE EXECUTIVE DIRECTOR OF THE UN
WORLD FOOD PROGRAM (WFP) AND WORLD TRADE ORGANIZATION (WTO)
DIRECTOR GENERAL PANITCHPAKDI IN WHICH PANITCHPAKDI IS ASKED
TO PROVIDE VIEWS ON THE HOW WFP SHOULD HANDLE BIOTECH
ENGINEERED FOOD AID. PANITCHPAKDI CONCLUDES THAT
CONTINUATION OF THE CURRENT WFP POLICY (ALLOWING EACH
COUNTRY TO DECIDE WHETHER OR NOT TO ACCEPT BIOTECH FOOD) IS
THE MOST "PRAGMATIC" OPTION. PANITCHPAKDI DOES NOT SUPPORT
THE RECOMMENDATION OF CERTAIN EU WFP EXECUTIVE BOARD MEMBERS
(REFTEL) THAT WFP IMPLEMENT "ADVANCE INFORMED AGREEMENT"
PRIOR TO ENTRY INTO FORCE OF THE CARTAGENA PROTOCOL. US
MISSION STRONGLY SUPPORTS WTO'S "QUIET ADVICE" THAT WFP
STICK WITH ITS PRESENT GM-FOOD AID POLICY. END SUMMARY.

-------------- --------------
FULL TEXT OF LETTER FROM WORLD TRADE ORGANIZATION (WTO)
DIRECTOR GENERAL PANITCHPAKDI TO WFP EXECUTIVE DIRECTOR
MORRIS DATED JANUARY 23, 2003
-------------- --------------

UNCLASSIFIED

PAGE 03 ROME 00395 01 OF 04 010828Z

2. (SBU) BEGIN TEXT:

THANK YOU FOR YOUR LETTER OF 14 JANUARY SEEKING THE ADVICE
OF THE WTO REGARDING HOW WFP SHOULD HANDLE DONATIONS OF
GM/BIOTECH FOODS. I APPRECIATE YOUR INTEREST IN OUR VIEWS
ON THIS HIGHLY SENSITIVE MATTER.

THE WTO HAS NO AGREEMENTS EXPLICITLY RELATING TO TRADE IN
GM/BIOTECH FOODS, NOR HAVE THERE BEEN ANY FORMAL LEGAL
INTERPRETATIONS OR DECISIONS REGARDING THE APPLICATION OF
WTO AGREEMENTS TO SUCH TRADE. FURTHERMORE, ALTHOUGH THERE
HAS BEEN SOME DISCUSSION REGARDING RESTRICTIONS ON THE TRADE
IN GM/BIOTECH FOODS, NO MEETINGS HAVE BEEN HELD UNDER THE
AUSPICES OF THE WTO TO DISCUSS THIS MATTER. THEREFORE, MY
RESPONSE TO YOU IS SOLELY AS THE HEAD OF THE WTO
SECRETARIAT, AND DOES NOT NECESSARILY REFLECT THE VIEWS OF

SIPDIS
OUR MEMBER GOVERNMENTS.

THERE ARE SEVERAL WTO AGREEMENTS WHICH MAY HAVE SOME
RELEVANCE FOR TRADE IN GM/BIOTECH FOODS, IN PARTICULAR THE
AGREEMENT ON THE APPLICATION OF SANITARY AND PHYTOSANITARY
MEASURES (THE "SPS AGREEMENT"),THE AGREEMENT ON TECHNICAL
BARRIERS TO TRADE (THE "TBT AGREEMENT"),AND THE GENERAL
AGREEMENT ON TARIFFS AND TRADE 1994 (THE "GATT"). THE
AGREEMENT ON TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY
RIGHTS (THE "TRIPS AGREEMENT") MAY APPLY TO THE ISSUE OF
PATENT PROTECTION FOR GM/BIOTECH PRODUCTS, BUT IS PROBABLY
NOT RELEVANT WITH REGARD TO FOOD AID.

THE SPS AGREEMENT RECOGNIZES THE RIGHT OF ANY WTO MEMBER
GOVERNMENT TO RESTRICT TRADE WHEN NECESSARY TO ENSURE THE
UNCLASSIFIED

PAGE 04 ROME 00395 01 OF 04 010828Z
PROTECTION OF HEALTH, SUBJECT TO CERTAIN CONDITIONS. THIS
AGREEMENT SPECIFICALLY ADDRESSES THE PROTECTION OF HUMAN AND
ANIMAL HEALTH FROM RISKS "ARISING FROM ADDITIVES,
CONTAMINANTS, TOXINS OR DISEASE-CAUSING ORGANISMS" IN FOODS,
BEVERAGES OR FEEDSTUFFS; THE PROTECTION OF PLANT AND ANIMAL
HEALTH FROM PESTS OR DISEASES; AND THE PROTECTION OF THE
TERRITORY OF A COUNTRY FROM THE ENTRY, ESTABLISHMENT OR
SPREAD OF PESTS. THIS LATTER RUBRIC WAS INTENDED TO ADDRESS
CONCERNS OF INVASIVE SPECIES "CROWDING OUT" NATIVE SPECIES
OR OTHERWISE CAUSING DAMAGES, A CONCERN WHICH MAY BE
APPLICABLE WITH RESPECT TO SOME LIVING MODIFIED ORGANISMS.
ALTHOUGH THE SPS AGREEMENT REQUIRES THE TRADE-RESTRICTING
MEASURES ARE BASED ON SCIENTIFIC EVIDENCE, AND IN PARTICULAR
ON A RISK ASSESSMENT, GOVERNMENTS ARE PERMITTED TO TAKE
PROVISIONAL MEASURES IN CASES WHERE THERE IS INSUFFICIENT
SCIENTIFIC EVIDENCE.

THE SPS AGREEMENT ENCOURAGES GOVERNMENTS TO BASE THEIR

UNCLASSIFIED

UNCLASSIFIED PTQ2990

PAGE 01 ROME 00395 02 OF 04 010831Z
ACTION EB-00

INFO LOG-00 AGRE-00 AID-00 EAP-00 EUR-00 UTED-00 TEDE-00
IO-00 OIC-02 STR-00 TEST-00 PRM-00 SAS-00 /002W
-------------- 2F613C 010831Z /25
P 311616Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 7940
INFO EU MEMBER STATES COLLECTIVE
AMEMBASSY OTTAWA
AMEMBASSY BERN
USDA FAS WASHDC 2486
USEU BRUSSELS 3090
USMISSION GENEVA
USMISSION USUN NEW YORK
AMEMBASSY TOKYO

UNCLAS SECTION 02 OF 04 ROME 000395

SIPDIS

FROM U.S. MISSION IN ROME

SENSITIVE

STATE FOR EB HANS KLEMM AND IO/EDA KOTOK
STATE PLEASE PASS TO US TRADE REPRESENTATIVE
USAID FOR D/DCHA/FFP LANDIS AND GLOBAL JLEWIS
USDA/FAS FOR MCHAMBLISS/RTILSWORTH
USUN NEW YORK FOR CSERWER
UNCLASSIFIED

PAGE 02 ROME 00395 02 OF 04 010831Z
USTR FOR RICHARD WHITE
BRUSSELS FOR USAID PLERNER
NSC FOR JDWORKEN
E.O. 12958: N/A
TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EU WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN
SUBJECT: WTO VIEWS ON BIOTECH ENGINEERED FOOD AID

SANITARY OR PHYTOSANITARY REQUIREMENTS ON THE INTERNATIONAL
STANDARDS AND RECOMMENDATIONS OF THE OFFICE INTERNATIONAL DE
EPIZOOTIES (OIE),FAO/WHO JOINT CODEX ALIMENTARIUS
COMMISSION AND THE FAO INTERNATIONAL PLANT PROTECTION
CONVENTION. BOTH OF THESE LATTER BODIES ARE EXPLICITLY
ADDRESSING THE ISSUE OF GM/BIOTECH PRODUCTS, WITH REGARD TO
POTENTIAL HUMAN HEALTH RISKS AND TO SOME ENVIRONMENTAL
RISKS.

THE TBT AGREEMENT PERMITS GOVERNMENTS TO REQUIRE THAT
IMPORTED PRODUCTS COMPLY WITH MANDATORY TECHNICAL
REGULATIONS WHICH ARE NECESSARY TO FULFILL A LEGITIMATE
OBJECTIVE. PROTECTION OF HUMAN, ANIMAL, PLANT AND
ENVIRONMENTAL HEALTH ARE AMONG THE LEGITIMATE OBJECTIVES FOR
WHICH PRODUCT REQUIREMENTS MAY BE DEVELOPED. SUCH TECHNICAL
REGULATIONS ARE TO BE NO MORE TRADE-RESTRICTIVE THAN
NECESSARY TO FULFILL THE LEGITIMATE OBJECTIVE, TAKING
ACCOUNT OF THE RISKS FROM NON-FULFILLMENT. WHEN A TECHNICAL
REGULATION IS REQUIRED, GOVERNMENTS ARE ENCOURAGED TO MAKE
USE OF RELEVANT INTERNATIONAL STANDARDS, ALTHOUGH THE TBT
AGREEMENT DOES NOT EXPLICITLY IDENTIFY WHICH STANDARDS OR
STANDARD-SETTING BODIES MAY BE RELEVANT.

THE GATT SETS THE BASIC PRINCIPLES FOR INTERNATIONAL TRADE
UNCLASSIFIED

PAGE 03 ROME 00395 02 OF 04 010831Z
GOODS, INCLUDING THE PRINCIPLES OF NON-DISCRIMINATION AMONG
SUPPLYING COUNTRIES AND OF THE TREATMENT OF IMPORTED GOODS
NO LESS FAVORABLY THAN SIMILAR DOMESTICALLY-PRODUCED GOODS.
HOWEVER, THE GATT ALSO INCLUDES A GENERAL EXCEPTION THAT
PERMITS GOVERNMENTS TO TAKE MEASURES NECESSARY FOR THE
PROTECTION OF HUMAN, ANIMAL AND PLANT LIFE OR HEALTH AS LONG
AS THESE ARE NOT APPLIED IN A MANNER WHICH WOULD BE A MEANS
OF ARBITRARY OR UNJUSTIFIABLE DISCRIMINATION BETWEEN
COUNTRIES, OR A DISGUISED RESTRICTION ON INTERNATIONAL
TRADE.

THERE HAS BEEN SOME DISCUSSION REGARDING RESTRICTIONS ON THE
TRADE IN GM/BIOTECH PRODUCTS IN THE COMMITTEES WHICH DEAL
WITH THE IMPLEMENTATION OF THE SPS AGREEMENT AND THE TBT
AGREEMENT. IN THE SPS COMMITTEE, THE DISCUSSIONS HAVE
FOCUSED PRIMARILY ON ISSUES RELATING TO THE CONDITIONS FOR
APPROVAL OF SALE OR USE OF SPECIFIC GM/BIOTECH PRODUCTS. IN
THE TBT COMMITTEE, THE DISCUSSIONS HAVE PRIMARILY CONCERNED
LABELING REQUIREMENTS IMPOSED BY VARIOUS GOVERNMENTS.
HOWEVER, IN NEITHER COMMITTEE HAS THERE BEEN ANY ATTEMPT TO
REACH AGREEMENT ON ISSUES RELATING TO THE TRADE IN
GM/BIOTECH PRODUCTS. IN ADDITION, IN THE CONTEXT OF THE ON-
GOING NEGOTIATIONS IN THE AGRICULTURE SECTOR IN THE UNITED
STATES PROPOSED AT AN EARLY STAGE TO DEVELOP NEW DISCIPLINES
TO ENSURE THAT PROCESSES COVERING TRADE IN PRODUCTS
DEVELOPED THROUGH NEW TECHNOLOGIES ARE TRANSPARENT,
PREDICTABLE AND TIMELY, HOWEVER TO DATE THERE HAS BEEN NO
DETAILED CONSIDERATION OF THIS PROPOSAL.

FURTHERMORE, TO DATE ONLY ONE SPECIFIC TRADE COMPLAINT HAS
BEEN BROUGHT TO THE WTO REGARDING RESTRICTIONS ON THE TRADE
UNCLASSIFIED

PAGE 04 ROME 00395 02 OF 04 010831Z
OF GM/BIOTECH PRODUCTS. THIS COMPLAINT WAS BROUGHT BY
THAILAND IN SEPTEMBER 2000 WITH RESPECT TO EGYPT'S
PROHIBITION OF TUNA FISH CANNED IN SOY OIL FROM THAILAND,
ALLEGEDLY ON THE GROUNDS THAT THE OIL MIGHT BE DERIVED FROM
GM SOYBEANS. IT APPEARS THAT THE PARTIES FOUND A BILATERAL
SOLUTION TO THE COMPLAINT; IN ANY CASE, THAILAND HAS NOT
REQUESTED THE ESTABLISHMENT OF A DISPUTE RESOLUTION PANEL TO
EXAMINE THE MATTER. THEREFORE, ALTHOUGH THAILAND ALLEGED
THAT THE EGYPTIAN BAN WAS IN VIOLATION OF THE SPS AGREEMENT,
THERE HAVE BEEN NO LEGAL RULINGS OR JUDGMENTS WITH REGARD TO
THE APPLICABILITY OF ANY WTO AGREEMENT TO TRADE IN
GM/BIOTECH FOOD PRODUCTS. IF THE WFP WOULD LIKE FURTHER
INFORMATION REGARDING THE RELEVANT WTO AGREEMENTS AND
CONSIDERATION OF THIS ISSUE WITHIN THE WTO, PLEASE DO NOTE
HESITATE TO CONTACT MRS. GRETCHEN STANTON (+41 22 739 5086).

LET ME NOW ADDRESS THE FOUR OPTIONS FOR WFP POLICY WHICH YOU
IDENTIFIED IN YOUR LETTER.

UNCLASSIFIED

>
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UNCLASSIFIED PTQ2989

PAGE 01 ROME 00395 01 OF 04 010828Z
ACTION EB-00

INFO LOG-00 AGRE-00 AID-00 EAP-00 EUR-00 UTED-00 TEDE-00
IO-00 OIC-02 STR-00 TEST-00 PRM-00 SAS-00 /002W
-------------- 2F6126 010828Z /25
P 311616Z JAN 03
FM AMEMBASSY ROME
TO SECSTATE WASHDC PRIORITY 7939
INFO EU MEMBER STATES COLLECTIVE
AMEMBASSY OTTAWA
AMEMBASSY BERN
USDA FAS WASHDC 2485
USEU BRUSSELS 3089
USMISSION GENEVA
USMISSION USUN NEW YORK
AMEMBASSY TOKYO

UNCLAS SECTION 01 OF 04 ROME 000395

SIPDIS

FROM U.S. MISSION IN ROME

SENSITIVE

STATE FOR EB HANS KLEMM AND IO/EDA KOTOK
STATE PLEASE PASS TO US TRADE REPRESENTATIVE
USAID FOR D/DCHA/FFP LANDIS AND GLOBAL JLEWIS
USDA/FAS FOR MCHAMBLISS/RTILSWORTH
USUN NEW YORK FOR CSERWER
UNCLASSIFIED

PAGE 02 ROME 00395 01 OF 04 010828Z
USTR FOR RICHARD WHITE
BRUSSELS FOR USAID PLERNER
NSC FOR JDWORKEN
E.O. 12958: N/A
TAGS: EAID EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EAGR AORC PREF EU WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN EUEAID WFP UN
SUBJECT: WTO VIEWS ON BIOTECH ENGINEERED FOOD AID

REF: (02) ROME 5226

SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY.

1. (SBU) SUMMARY. MISSION HAS BEEN PROVIDED A COPY OF
CORRESPONDENCE BETWEEN THE EXECUTIVE DIRECTOR OF THE UN
WORLD FOOD PROGRAM (WFP) AND WORLD TRADE ORGANIZATION (WTO)
DIRECTOR GENERAL PANITCHPAKDI IN WHICH PANITCHPAKDI IS ASKED
TO PROVIDE VIEWS ON THE HOW WFP SHOULD HANDLE BIOTECH
ENGINEERED FOOD AID. PANITCHPAKDI CONCLUDES THAT
CONTINUATION OF THE CURRENT WFP POLICY (ALLOWING EACH
COUNTRY TO DECIDE WHETHER OR NOT TO ACCEPT BIOTECH FOOD) IS
THE MOST "PRAGMATIC" OPTION. PANITCHPAKDI DOES NOT SUPPORT
THE RECOMMENDATION OF CERTAIN EU WFP EXECUTIVE BOARD MEMBERS
(REFTEL) THAT WFP IMPLEMENT "ADVANCE INFORMED AGREEMENT"
PRIOR TO ENTRY INTO FORCE OF THE CARTAGENA PROTOCOL. US
MISSION STRONGLY SUPPORTS WTO'S "QUIET ADVICE" THAT WFP
STICK WITH ITS PRESENT GM-FOOD AID POLICY. END SUMMARY.

-------------- --------------
FULL TEXT OF LETTER FROM WORLD TRADE ORGANIZATION (WTO)
DIRECTOR GENERAL PANITCHPAKDI TO WFP EXECUTIVE DIRECTOR
MORRIS DATED JANUARY 23, 2003
-------------- --------------

UNCLASSIFIED

PAGE 03 ROME 00395 01 OF 04 010828Z

2. (SBU) BEGIN TEXT:

THANK YOU FOR YOUR LETTER OF 14 JANUARY SEEKING THE ADVICE
OF THE WTO REGARDING HOW WFP SHOULD HANDLE DONATIONS OF
GM/BIOTECH FOODS. I APPRECIATE YOUR INTEREST IN OUR VIEWS
ON THIS HIGHLY SENSITIVE MATTER.

THE WTO HAS NO AGREEMENTS EXPLICITLY RELATING TO TRADE IN
GM/BIOTECH FOODS, NOR HAVE THERE BEEN ANY FORMAL LEGAL
INTERPRETATIONS OR DECISIONS REGARDING THE APPLICATION OF
WTO AGREEMENTS TO SUCH TRADE. FURTHERMORE, ALTHOUGH THERE
HAS BEEN SOME DISCUSSION REGARDING RESTRICTIONS ON THE TRADE
IN GM/BIOTECH FOODS, NO MEETINGS HAVE BEEN HELD UNDER THE
AUSPICES OF THE WTO TO DISCUSS THIS MATTER. THEREFORE, MY
RESPONSE TO YOU IS SOLELY AS THE HEAD OF THE WTO
SECRETARIAT, AND DOES NOT NECESSARILY REFLECT THE VIEWS OF

SIPDIS
OUR MEMBER GOVERNMENTS.

THERE ARE SEVERAL WTO AGREEMENTS WHICH MAY HAVE SOME
RELEVANCE FOR TRADE IN GM/BIOTECH FOODS, IN PARTICULAR THE
AGREEMENT ON THE APPLICATION OF SANITARY AND PHYTOSANITARY
MEASURES (THE "SPS AGREEMENT"),THE AGREEMENT ON TECHNICAL
BARRIERS TO TRADE (THE "TBT AGREEMENT"),AND THE GENERAL
AGREEMENT ON TARIFFS AND TRADE 1994 (THE "GATT"). THE
AGREEMENT ON TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY
RIGHTS (THE "TRIPS AGREEMENT") MAY APPLY TO THE ISSUE OF
PATENT PROTECTION FOR GM/BIOTECH PRODUCTS, BUT IS PROBABLY
NOT RELEVANT WITH REGARD TO FOOD AID.

THE SPS AGREEMENT RECOGNIZES THE RIGHT OF ANY WTO MEMBER
GOVERNMENT TO RESTRICT TRADE WHEN NECESSARY TO ENSURE THE
UNCLASSIFIED

PAGE 04 ROME 00395 01 OF 04 010828Z
PROTECTION OF HEALTH, SUBJECT TO CERTAIN CONDITIONS. THIS
AGREEMENT SPECIFICALLY ADDRESSES THE PROTECTION OF HUMAN AND
ANIMAL HEALTH FROM RISKS "ARISING FROM ADDITIVES,
CONTAMINANTS, TOXINS OR DISEASE-CAUSING ORGANISMS" IN FOODS,
BEVERAGES OR FEEDSTUFFS; THE PROTECTION OF PLANT AND ANIMAL
HEALTH FROM PESTS OR DISEASES; AND THE PROTECTION OF THE
TERRITORY OF A COUNTRY FROM THE ENTRY, ESTABLISHMENT OR
SPREAD OF PESTS. THIS LATTER RUBRIC WAS INTENDED TO ADDRESS
CONCERNS OF INVASIVE SPECIES "CROWDING OUT" NATIVE SPECIES
OR OTHERWISE CAUSING DAMAGES, A CONCERN WHICH MAY BE
APPLICABLE WITH RESPECT TO SOME LIVING MODIFIED ORGANISMS.
ALTHOUGH THE SPS AGREEMENT REQUIRES THE TRADE-RESTRICTING
MEASURES ARE BASED ON SCIENTIFIC EVIDENCE, AND IN PARTICULAR
ON A RISK ASSESSMENT, GOVERNMENTS ARE PERMITTED TO TAKE
PROVISIONAL MEASURES IN CASES WHERE THERE IS INSUFFICIENT
SCIENTIFIC EVIDENCE.

THE SPS AGREEMENT ENCOURAGES GOVERNMENTS TO BASE THEIR

UNCLASSIFIED

>
2003ROME00395 - Classification: UNCLASSIFIED