EU AG MINISTERS DISCUSS FOOD SECURITY, HEALTH

UNCLAS SECTION 01 OF 02 LISBON 002477 SIPDIS SENSITIVE SIPDIS PLEASE PASS TO AGRICULTURE ATTACHES E.O. 12958: N/A TAGS: EAGR ECON TBIO EUN SUBJECT: EU AG MINISTERS DISCUSS FOOD SECURITY, HEALTH CHECK, WINE REFORM REF: LISBON 2171 LISBON 00002477 001.2 OF 002 Summary -------------- ¶1. (U) Food security, the Common Agricultural Policy (CAP) Reform Health Check, and wine reform dominated the September 16-18 Informal EU Agricultural Ministerial agenda in Porto, Portugal. Portugal's Agriculture Minister Jaime Silva also welcomed debate on the EU's transgenic crop policy to clarify prevailing misconceptions. Food Security a Top Priority -------------- ¶2. (U) Portugal's Minister of Agriculture, Rural Development and Fisheries Jaime Silva, who hosted the EU's 27 agricultural ministers, noted that food security (vice food safety) dominated the September 16-18 informal gathering in Porto. Europe's efforts to provide food security to its citizens were complicated by the ever-growing exodus of farmers from rural areas. Post-2013 rural development would be even more important, he noted, as Pillar I funds shifted to Pillar II. Climate change and desertification presented additional challenges. He underscored the need to focus efforts on the food industry as a whole, not on individual segments, and to locate food processing centers near food production. He further underscored the importance of rural development within the Common Agricultural Policy (CAP) and the need to maintain and deepen reforms begun in 2003. He acknowledged that farmers were asking for new CAP reforms that would provide stability and predictability. Health Check Appropriate and Well-Timed -------------- ¶3. (U) Further to the dialogue on food security, Silva noted that 2003 CAP reforms needed to continue in an ambitious way, particularly since CAP Health Check discussions were due to begin in November. Silva commented that EU Agriculture and Rural Development Commissioner Mariann Fischer-Boel had launched the Health Check at the appropriate time. He praised her courage to check if EU farm reform policy was accomplishing what it set out to do and to ascertain how Europe could meet the challenges of the 21st century. Fischer-Boel added that she was pleasantly surprised by French President Sarkozy's recent comments, noting that the Health Check fit nicely with his message against standing still and providing farmers with stability. Having received the green light to proceed with the Health Check the week before the informal gathering, Fischer-Boel planned to present the paper in November and the legal proposal in May ¶2008. She expected to finalize the Health Check next year. She was surprised by the many detailed questions from the media regarding content, noting that the proposal had not even been written yet. She further underscored that the Health Check needed to be WTO compliant. Wine Reform Necessary to Remain Competitive -------------- ¶4. (U) Portugal's Douro Valley, famous for its Port wine, provided the backdrop for discussions on wine reform and geographic indicators. Fischer-Boel noted that in 2006 all member-states had agreed wine reform was necessary to bolster EU competitiveness. Although still the world leader in wine exports, the EU was losing its competitive edge, both internationally and internally, Silva said. Wine reform must not only focus on quality, he commented, but also on environmental sustainability and employment. Fischer-Boel added that, despite claims to the contrary, she had not cut the European Commission's 1.3 billion euro wine sector budget. However, she did note that funds could be better utilized and that she had reallocated a half-billion euros for distillation and 120 million euros for wine promotion. Misinformation Dominates Transgenic Debate -------------- ¶5. (U) Acknowledging the two dozen anti-transgenic crop protestors outside the conference, Silva commented that there was a lot of misinformation about the issue. Most people did not understand that the EU had very stringent biotech laws based on food safety and scientific testing, he said. He welcomed the opportunity for further discussion. Post notes that in late August, Silva publicly defended the right of farmers to plant EFSA approved transgenic crops after activists destroyed transgenic acreage in the south of Portugal (reftel). (Comment: Most protestors reportedly came from outside Portugal. End Comment.) Comment LISBON 00002477 002.2 OF 002 -------------- ¶6. (SBU) Minister Silva told visiting Ag Attache and Charge in late August that he hoped to steer discussion of CAP reform toward the creation of a system based on subsidy that was related to output and commodity price as opposed to the current system of unpegged subsidies. As subsidies were mentioned in passing during the press conferences, it is unclear how much progress was made towards this end. Hoffman