ITALY/BIOTECH: BAN ON FOUR GM CORN

UNCLAS ROME 004809

SIPDIS


USDA FOR OSEC -- PENN
USDA/FAS FOR SIMMONS, RIEMENSCHEIDER, AND
D.YOUNG
STATE PASS USTR
GENEVA FOR USTR

SENSITIVE

E.O. 12958: N/A
TAGS: ETRD EAGR TBIO KSCA IT WTO
SUBJECT: ITALY/BIOTECH: BAN ON FOUR GM CORN
VARIETIES OVERTURNED BY ITALIAN COURT

Ref: Rome 4563

Sensitive But Unclassified -- Not For Internet Distribution


1. (U) Summary. Italy's August 2000 ban on the
commercialization of four biotech corn varieties was
annulled on November 29, 2004, by a Lazio regional court.
The ruling on the so-called Amato Decree resulted from a
lawsuit filed in November 2000 by three multinational seed
companies and an Italian biotech association. The ruling
concurred with a 2003 European Court of Justice opinion that
such a ban was justifiable only if a Member State could
demonstrate scientific evidence of risk to humans. Four years
under the Amato Decree has affected U.S. exports to Italy; in
particular, it obstructed Italian imports of corn products, such
as corn gluten feed and corn oil. It remains to be seen how
successful U.S. corn exporters will be in reestablishing their
presence in the Italian market. In the meantime, last month's
decree-law on coexistence, which bans all GM cultivation in
Italy through 2005 while Italy's regions draw up their own
coexistence plans, likely will continue to discourage public
acceptance of GM crops and products in Italy. End summary.


2. (U) On November 29, 2004, the Regional Administrative
Tribunal (TAR) of Lazio (which includes Rome) annulled the
Amato Decree, which since August 2000 had banned
commercialization in Italy of four biotech corn varieties: BT
11 (Novartis),MON810 (Monsanto),MON 809 (Monsanto)
and T25 (Aventis). All four varieties had already been
authorized by the EU and marketed for both food and feed
uses. In its decision, the court noted that "in the years of
commercialization experience in the whole EU territory, as
well as in the United States, there are no reports that these
products have caused serious and irreversible threats" to
human health. The ruling quotes a series of scientific
recommendations, coming from different sources, speaking in
favor of the safety of these products.


3. (SBU) The Amato decree had been enacted by the
previous center-left government primarily to defuse a
political crisis (placating the Green Party, which had
threatened to withdraw from the government led by then
Prime Minister Giuliano Amato if such a ban were not
implemented),rather than in response to actual concerns
about human health risks. In November 2000, Assobiotec
(the Italian organization of biotech companies) and three
leading seed companies (Monsanto, Pioneer, and Syngenta)
filed a lawsuit against the Amato decree in the Lazio TAR,
and claimed the decree violated several existing laws; the
following year the TAR suspended proceedings while
seeking advice from the European Court of Justice (ECJ).
The most recent TAR ruling concurred with the 2003 ECJ
ruling that a national government could temporarily restrict
or suspend trade in genetically modified foods only if it had
detailed, proven grounds to suspect a risk to human health.


4. (SBU) Following the coming to power in May 2001 of the
current center-right government led by Prime Minister Silvio
Berlusconi, the new Agriculture Minister Giovanni
Alemanno adopted a strong anti-biotech stance that included
maintaining the Amato decree's ban. Since fall 2003
Alemanno had promised to lift the Amato decree in
conjunction with implementation of regulations on the
coexistence of GM and non-GM cultivation. Even with the
advent of such regulations by a decree law passed in
November 2004 (reftel),however, Alemanno did not take any
steps to keep his earlier promise. We are unaware of any
public comments by Alemanno or other ministry officials on
the Lazio court decision.


5. (U) During the last four years, the Amato decree has had a
significantly negative effect on shipments of all corn-based
products from the United States to Italy. (Note: the United
States cited the Amato Decree in its August 2003 filing with
the WTO of a case against the EU for its moratorium on the
approval of biotech products.) Corn gluten feed exports
dropped from almost 200,000 tons per year in 1998/99
(valued at some $20 million) to virtually zero in 2003 and

2004. U.S. exports of corn oil to Italy, which totaled about
50,000 tons per year (valued at over $50 million) before the


implementation of the Amato decree, also dropped to zero in
2003 and 2004. Even during the 2003/04 marketing year,
when domestic Italian corn production was severely affected
by drought and Italy actively sought feed imports on the
world market, Italy refused to allow imports of U.S. corn.
Sorghum imports were used for animal feed as a substitute
for corn, the first time in a dozen years that sorghum was
imported (here the U.S. did benefit, with about 450,000 tons
of U.S. sorghum exported to Italy).


6. (SBU) Comment. While either side may appeal the Lazio
TAR's decision, our contacts uniformly tell us that this is
unlikely to happen. Clearly the demise of the Amato decree is
a positive and welcome development. Nevertheless, the
decree's nullification through a court decision rather than
through positive GOI action reflects the continuing inability
of the government to move towards science-based decisions
involving the agricultural biotech sector. It remains to be
seen whether U.S. corn and corn products can reestablish
their presence in the Italian market. In the meantime, last
month's decree-law on coexistence, which bans all GM
cultivation in Italy through 2005 while Italy's regions draw
up their own coexistence plans, likely will continue to
discourage public acceptance of GM crops and products in
Italy. Since the Italian Parliament must ratify the decree-law
by late January (or act to extend the deadline) in order for it
to remain in effect, Embassy has initiated a series of contacts
with key Italian lawmakers to encourage them to accept only
permanent coexistence regulations that are science-based.
End comment.


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2004ROME04809 - Classification: UNCLASSIFIED