Identifier
Created
Classification
Origin
03ROME5507
2003-12-09 12:28:00
UNCLASSIFIED
Embassy Rome
Cable title:  

COEXISTENCE IN ITALY, AG BIOTECH

Tags:  EAGR ETRD IT EUN 
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UNCLAS ROME 005507 

SIPDIS


USDA FOR OSEC HEGWOOD
USDA FOR OSEC SIMMONS
STATE PASS USDA/FAS BLUM AND E. JONES
STATE PASS USTR

E.O. 12958: N/A
TAGS: EAGR ETRD IT EUN
SUBJECT: COEXISTENCE IN ITALY, AG BIOTECH
AND WTO: USDA U/S PENN'S MEETING WITH AG
MINISTER ALEMANNO


UNCLAS ROME 005507

SIPDIS


USDA FOR OSEC HEGWOOD
USDA FOR OSEC SIMMONS
STATE PASS USDA/FAS BLUM AND E. JONES
STATE PASS USTR

E.O. 12958: N/A
TAGS: EAGR ETRD IT EUN
SUBJECT: COEXISTENCE IN ITALY, AG BIOTECH
AND WTO: USDA U/S PENN'S MEETING WITH AG
MINISTER ALEMANNO



1. Summary: On the margins of the FAO
Conference's 32nd Session in Rome,
USDA's Under Secretary J.B. Penn met with
Minister of Agriculture Gianni Alemanno to
discuss biotechnology in Italy, and the way
forward in the agricultural portion of the
Doha WTO negotiations. The discussion with
Alemanno broke no new ground except for his
offer to share advance copies of
his upcoming proposal on co-existence
in order that the United States can have input
into the process prior to it being submitted
to Italy's cabinet for approval. A separate
conversation with MinAg's Under Secretary
Scarpa Bonazza with FAS Administrator Terpstra
reinforced the divergence of views on biotech
that exist within Prime Minister Berlusconi's
governing coalition. Embassy is following up
with Alemanno's staff to secure a copy of the
proposed decree and will forward it to
Washington as soon as available. End summary.


2. On December 2, USDA Under Secretary Penn
met with Italian Minister of Agriculture
Alemanno. Penn was accompanied by FAS
Administrator Terpstra, DCM Skodon, Minister
Counselor Hardy-Bass and AgAttache Murphy.
By way of introduction, Alemanno announced
that Italian biotech policy would undergo
"significant change" by the end of December.
Alemanno indicated that Italy would soon
repeal the Amato decree (that bans four EU-
approved corn varieties) and publish a
decree on co-existence. Alemanno made clear
that the two actions would move forward
together. According to the Minister, the
co-existence decree would "allow" for GM
crops in Italy -- but with extreme
precaution. He went on to say that seven
(of Italy's twenty) regions have
already taken the position of desiring to
prohibit biotech cultivation.


3. U/S Penn noted the overall positive
relationship between Italy and the
United States, in trade and pol/mil affairs,
with one significant exception --
biotechnology. U/S Penn expressed growing
frustration with Italy and its more and more
extreme anti-biotech position. This
frustration, he explained, extended to the
Administration as well as to the Congress.
The Under Secretary reminded Alemanno that
the United States had a one-billion dollar

agricultural trade deficit with Italy and
that there would be consequences should
Italy continue to inhibit U.S. agricultural
exports.
Note: U/S Penn's statement closely
coincides with what Ambassador Sembler has
told Alemanno on several occasions.


4. Alemanno reiterated his intention to
publish soon a new decree governing
co-existence. He maintained that his seed
decree governing trade in conventional seeds
(corn and soybeans) would improve access for
U.S. seed from that of the last few years.
Alemanno also took issue with the U.S.
contention that U.S. seed exporters have
lost between 40-60 million dollars/annually
because the Ministry's actions to guarantee
biotech-free seeds to Italian farmers. He
noted that the Ministry's data show that
three American multinational companies have
continued to enjoy over 70 percent market
share. (Comment: What the Minister failed
to account for is the proportion of those
seeds that are no longer sourced from U.S.
seed producers as they are perceived as too
risky under Italy's zero tolerance for
adventitious presence. End Comment) The two
parties agreed to let their technical staff
resume the debate over the trade figures.

Alemanno concluded by stating the Ministry
would share a draft version of the co-
existence decree prior to submitting it to
the Council of Ministers for approval, in
order that the U.S. and Italy could have a
dialogue on the proposals prior to
publication. (Comment: We are following up
on Alemanno's offer to get copies of the
draft decrees ASAP. If Italy indeed
publishes the coexistence decree by the end
of December, there is very little time for a
considered evaluation of the proposals and
dialogue. End Comment)


5. U/S Penn thanked Alemanno for the chance
for consultation, but warned him again of
the seriousness of the issue and that
negative consequences could follow if the
future course of action is in the same
direction taken in recent years. He
added that rules governing the agricultural
sector and influencing international trade
without a basis in sound science are against
the rules of the WTO. Alemanno also said
that he has introduced a quantitative
analysis for GM presence this year instead
of last year's qualitative analysis,
bolstering his claim that he is not against
a science-based approach to biotech. He
expressed his often repeated position that
Italians favor 'high quality food' implying
that biotechnology is an anathema to
quality agriculture. U/S Penn repeated that
his is a grave concern, and that if Italy
and the U.S. cannot arrive at a solution,
that Italy will face negative consequences.


6. Alemanno brought up a second issue:
geographical indications (GIs). He
mentioned this in the context of Italy's
hopes that progress will ensue in the
upcoming WTO meetings in Geneva. Without
commenting on GI's, U/S. Penn remarked that
Alemanno's assessment was correct, that the
EU and the U.S. narrowed their differences
after the Montreal mini-ministerial. Penn
mentioned a positive discussion with
Commissioner Fischler and mutual willingness
to make progress on Dec. 15.

TERPSTRA MEETING WITH SCARPA BONAZZA


7. For a different perspective on the
proposed coexistence law and to discuss
CAP reform and Doha negotiations, on Dec. 3
FAS Administrator Terpstra met with Under
Secretary Paulo Scarpa Bonazza Buora.

SIPDIS


8. Scarpa agreed with Terpstra the there is
very little time to make much-needed
progress in the Doha Development Round.
Scarpa's point was that due to new Member
State accession to the EU and October 31
changes in the Commissioners, the present EU
leadership has only four or five months left
to act with its current structure. U/S
Scarpa's few comments about CAP reform were
critical, characterizing Commissioner
Fischler's actions as only addressing half
of the equation. According to Scarpa,
Fischler has addressed cuts to farm support
but has not given adequate attention to how
farmers can become competitive in a new
"unprotected" global agricultural market.


9. According to U/S Scarpa, agricultural
biotechnology is one of the tools for
raising farm productivity and therefore
increasing competitiveness. If Minister
Alemanno succeeds in keeping it out of
Italy, especially while other European
Member States start using input-saving or
output-boosting biotech seeds, Italy will
become increasingly isolated and unable to

offer competitive food exports.


10. Comment: Under Secretary Scarpa is a
member of PM Berlusconi's Forza Italia
party, whereas Alemanno is an up and coming
member of the second largest coalition
partner, Alliance
Nazionale. The contrast in Alemanno and
Scarpa's positions on biotech is striking.
Scarpa himself owns a corn farm in the
Veneto region and is favorably disposed
towards technological advancement, including
biotechnology, but he acknowledged that he
is powerless to deliver policy change within
the Alemanno-controlled Ministry of
Agriculture. Rather, Scarpa also fears that
the Alemanno doctrine on coexistence could
be another blow against the introduction of
biotech in Italy. End Comment.



11. Neither U/S Penn or Administrator
Terpstra were able to review this cable
prior to departure. Sembler


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2003ROME05507 - Classification: UNCLASSIFIED