ITALY/BIOTECH: PROPOSED COEXISTENCE DEGREE COULD

C O N F I D E N T I A L ROME 004141

SIPDIS


STATE PASS USDA FOR OSEC - PENN AND SIMMONS
STATE PASS USDA/FAS FOR BLUM AND D.YOUNG
STATE PASS USTR

E.O. 12958: DECL: 10/25/2009
TAGS: EAGR ETRD TBIO KSCA IT
SUBJECT: ITALY/BIOTECH: PROPOSED COEXISTENCE DEGREE COULD
BLOCK GM CULTIVATION IN ITALY

REF: A. 03 ROME 5507


B. 03 ROME 5149

C. 03 ROME 5127

Classified By: Economic Minister-Counselor Scott Kilner for Reason 1.4
(b) and (d)


1. (C) Summary. Agriculture Minister Alemanno has once again
asked the Italian Council of Ministers to approve a
decree-law on the coexistence of GM and non-GM seeds planted
in Italy. Like the draft that Alemanno attempted
(unsuccessfully) to push through in November 2003, the vague
text of the new draft decree-law seems designed to deny
Italian farmers the possibility of cultivating GM crops. The
Ambassador raised our concerns on the new draft with Prime
Minister Berlusconi's key advisor, Under Secretary Gianni
Letta, as well as several other ministers that are generally
favorable to biotech. Enough ministers objected to the draft
during the October 8 Council meeting to keep it from being
approved, but Alemanno has vowed to present a slightly
reworked (though still very troublesome) draft at the next
Council meeting, perhaps as soon as October 28. End summary.


2. (U) Agriculture Minister Alemanno has resumed his push to
implement a decree-law on the coexistence of GM and non-GM
seeds that would effectively inhibit farmers from attempting
to cultivate GM crops in Italy. Reacting to the European
Union,s decision in September to inscribe 17 varieties of GM
corn into the EU,s seed register, Alemanno announced October
5 that he would introduce the draft decree-law at the October
8 meeting of the Council of Ministers. Once adopted by the
Council, a decree-law takes effect immediately, but must be
ratified by parliament within sixty days; otherwise the
decree-law lapses. In theory, the Italian constitution limits
decree laws to cases of necessity and urgency, although in
practice the authority has been used quite broadly.

Draft Decree-Law of October 8, 2004
--------------


3. (SBU) Embassy obtained a copy of the draft decree-law
presented at the October 8 cabinet meeting. Like his draft
coexistence decree of November 2003 (see reftels),this new
vaguely worded draft does not provide a neutral set of rules
under which farmers could choose whether or not to grow GM
crops. Rather, the draft includes a number of measures that
appear primarily aimed at stopping Italian farmers from
choosing to sow GM seeds. Among the more troublesome parts of
the draft decree-law:

-- Farmers growing biotech crops must bear all responsibility
and potential legal burdens for coexistence impacts on
neighboring conventional or organic production or on the
environment, and could face heavy fines or imprisonment for
damages.

-- Each individual region would be responsible for
implementing the decree, potentially creating a patchwork of
regulations that would fragment the Italian seed market.

-- GM production would be banned in a "homogeneous"
production area that also produces a quality agricultural
product (usually associated with a geographic indication).

-- GM production would be banned until the necessary
regulatory work had been completed at the regional level to
implement the decree.

Ambassador Intervenes
--------------


4. (C) Given the likely negative impact of this proposal on
exports of U.S. seeds to Italy, Ambassador Sembler (joined by
AgMinCouns and Econ MinCouns) met with Under Secretary Gianni
Letta, PM Berlusconi,s top advisor, prior to the October 8
cabinet meeting to underscore our serious concerns with the
draft decree-law. (Letta had been instrumental in derailing
Alemanno,s attempt in November 2003 to impose a similar,
flawed coexistence decree). The Ambassador also telephoned
several ministers known to be receptive towards GM issues,
including Minister of Productive Activities Antonio Marzano,
Minister of Education and Research Letizia Moratti, Minister
of Health Girolamo Sirchia, and Minister for EU Affairs Rocco
Buttiglione.


5. (C) In his discussions the Ambassador emphasized that
regulating an important issue like coexistence should not be


done through a decree-law circumventing normal parliamentary
procedure. Such decree-laws are intended to be used only in
limited circumstances involving an urgent need, yet Italian
farmers would not be planting any GM corn until spring 2005
at the earliest. The Ambassador further noted that the draft
decree-law runs counter to the intention of the EU to give
farmers choice in cultivation decisions, and he suggested
that the government should consider consultations with the
European Commission before finalizing the regulations.
Rather than providing a practical framework in which farmers
could choose whether or not to cultivate GM crops,
Alemanno,s proposal would create such a high level of
uncertainty, with potentially serious punishment, that no
Italian farmer would run the risk of cultivating GM seeds.

Council of Ministers Delays Coexistence Decree -- For Now
-------------- --------------


6. (SBU) At the Council of Ministers' October 8 meeting,
several ministers, reportedly including Marzano, Sirchia, and
Moratti, expressed their opposition to the current draft,
which in the end was not approved. We understand that some
ministers expressed the concerns of leaders of some of
Italy,s regions regarding the significant responsibility
placed on them to implement the new rules. The Council
reportedly found the draft decree,s outright ban on biotech
cultivation, pending regional implementation of the
coexistence decree, to be inconsistent with EU regulations.
In addition, some ministers expressed doubt regarding the
urgency of the issue, and whether the EU should be consulted
before finalizing a decree. Press reports recently quoted
Prime Minister Berlusconi saying "I'm in favor of
guaranteeing maximum freedom. Perhaps with regard to this
decree it would be good to take a pause or pass a
parliamentary bill" (informal translation).


7. (SBU) Alemanno has indicated that he plans to ask the
Council of Ministers to reconsider the draft coexistence
decree at the next council meeting (the prime minister's
office has yet to confirm the timing of the meeting or
whether Alemanno's decree will be on the agenda). In the
meantime Alemanno has held meetings with both regional
leaders and farmers organizations in order to persuade them
to support the decree. Embassy has obtained a revised draft
that does not appear to differ significantly from the October
8 draft, at least in terms of providing farmers with a more
definitive framework that would enable them to freely choose
to cultivate GM crops. The revised decree provides for a
federal/regional conference to define coexistence rules,
including along regional borders. However, it still leaves
each region to implement its own autonomous coexistence plan.

Comment
--------------


8. (C) Embassy is continuing to press more biotech-friendly
ministries, as well as the prime ministry, at senior levels
in advance of the next Council of Ministers meeting (which we
understand has been scheduled for October 28). Nevertheless,
it appears likely that the Council will eventually pass some
sort of coexistence decree, given that Alemanno has placed
his personal credibility on its approval, and reportedly has
even threatened to resign if his decree law is not enacted.
If the government does decide to pursue such rules through a
normal parliamentary bill (in line with Berlusconi's reported
preference),this may provide for additional opportunities to
water down the legislation's most harmful provisions.


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2004ROME04141 - Classification: CONFIDENTIAL