ITALY'S EU PRESIDENCY Q EU AG

UNCLAS ROME 004436

SIPDIS


USEU BRUSSELS FOR AGRICULTURE
USDA FOR FAS/IT/EAMED AND O/A JONES;
ITP/FSTS/RICHEY
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E.O. 12958: N/A
TAGS: EAGR IT ECON EUN ETRO WTO
SUBJECT: ITALY'S EU PRESIDENCY Q EU AG
MINISTERS ASSESS CANCUN FAILURE AND WOO THE
THIRD WORLD AT INFORMAL MINISTERIAL



1. SUMMARY: at the informal meeting in
Taormina, Sicily Sept 20 Q 23 EU Agricultural
Ministers, Ag Commissioner Fischler, and
Health Minister Byrne assessed the outcomes
of Cancun and started wooing the Third World.
The Common Ag Policy (CAP)- was justified as
good for Europe and good for the developing
world. Fischler defended the green box,
geographic indications and other policies
Europe wants to maintain. Commissioner
Fischler emphasized there is no turning back
from CAP reform while Italy's Ag Minister
Alemanno observed that perhaps they needn't
have bothered. END SUMMARY.


2. All deplored the failure at Cancun as a
loss to agricultural interests worldwide.
Commissioner Fischler said future EU public
relations efforts will seek to win over EU
consumers as well as Third World Countries
who will learn about EU values and programs
for the rural sector, the environment,
geographic indications, food safety, and
animal welfare. Commissioner for Health and
Food Safety David Byrne praised the EU for
being the number one donor of assistance and
training to the Third World on food safety,
pesticides, additives, animal health
concerns, and even biotechnology. Minister
Alemanno proclaimed Geographic Indications as
a way to protect the rights of rural people
in the context of development. The working
concept at this meeting was that whatever
sustains agriculture in Europe, must be
compatible with sustainable development
around the globe.


3. Fischler referred to the World Food
Summit and recalled a list of needs for the
developing world including increasing
agricultural productivity and incomes,
boosting production, and doing so without
degrading the rural environment. Ag minister
Alemanno cited the "everything but arms"
initiative as emblematic of EU tutelage of
the poor, and said the EU was ready to engage
in a cultural dialog and share values with
the developing world. In his remarks to the
press Alemanno did not clash with Fischler or
Byrne, and he attempted to smooth over his
previous statement in a council session where
he reportedly expressed regrets about CAP
reform. He also attempted to clarify his
remarks that placed blame on the EU
Commissioners for imminent subsidy cuts to
tobacco producers in Italy. Note: when asked
privately, the Greek Deputy Minister of
Agriculture said that there was time to iron
out the problems the sector might face in
Greece. end note.


4. Guest presenters at the EU Ministerial
were from Brazil, Indonesia, and the Food and
Agriculture Organization. These guests
reinforced the message that food insecurity
and poverty were not addressed by trade
liberalization alone. The EU's point was that
accompanying policies and possible
contributions by EU member countries were
needed to bring about progress in the
developing world.


5. In the presidency's working document on
common objectives for Ag Policies, food
security and rural development alemanno's
stance against ag biotechnology is clearly a
value he wants to share with the third world.
in this development model he proposes that
the eu should set up extension, training, and
marketing assistance giving special attention
to gmo free products.


6. Regarding the impasse at Cancun,
Commissioner Fischler shared blame between Ag
negotiations and Singapore issues. There
were no spoken remarks in the press sessions
blaming the US, although in his written
remarks he said the Third World missed a
chance to press the US to pare down its
harmful ag support. He had much to say about
the way forward, none of it about
biotechnology. He emphasized that the EU
will not revisit the definition of the Green
Box, and that the concept of capping the
Green Box is a huge problem. He asserted
that with each step of enlargement the Green
Box will expand. Note: all acceding
countries but Bulgaria were represented at
the Informal Ministerial. End Note.
Fischler added that the EU will use Green Box
subsidies, by definition not trade
distorting, to satisfy their society's
requests for animal welfare and protection of
the environment, among others. He thus
indicated the EU's Green Box might expand not
only with enlargement, but with the inclusion
of society's growing requests. Sembler


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2003ROME04436 - Classification: UNCLASSIFIED