PORTUGAL SUPPORTS EU COMPLIANCE WITH WTO RULING ON

C O N F I D E N T I A L LISBON 002912

SIPDIS

C O R R E C T E D C O P Y (ADDRESSEE REMOVED/ADDED PASS LINE)

SIPDIS

PASS TO EUR/ERA, EEB/TPP/ABT/BBT, USTR, USDA/FAS
PASS TO DEPT OF AGRICULTURE, WASHDC

E.O. 12958: DECL: 11/13/2017
TAGS: EAGR ETRD EUN PO TBIO
SUBJECT: PORTUGAL SUPPORTS EU COMPLIANCE WITH WTO RULING ON
BIOTECH

REF: A. STATE 153542

B. LISBON 02171

Summary
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1. (C) In response to ref A points, Portugal underscored its
efforts to support EU compliance with the WTO Dispute
Settlement Body panel "reasonable period of time" ruling due
to expire on November 21. In particular, MFA officials told
us that Portugal made the very difficult decision to abstain
in the October 30 Environmental Council vote to approve
Austrian safeguards, defeating Austria's efforts to erect
additional non-tariff trade barriers to genetically-modified
organisms(GMOs). Despite official government support for
biotech, activists established the first GMO-Free zone within
the European Union in southern Portugal on November 5.

MFA and Economy Pressure Environment to Abstain
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2. (C) At the MFA's request, on November 6 Emboffs met with
MFA officials who highlighted recent Portuguese efforts to
support EU compliance with the WTO's 'reasonable period of
time' on biotech. They said the MFA and Ministry of Economy
had to exert strong pressure on the Ministry of the
Environment to abstain instead of voting in favor of the
Austrian safeguard measure. This contributed to Austria's
inability to receive a qualified majority to erect non-tariff
trade barriers.

Agriculture Ministry Urged to Accelerate Approvals
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3. (C) The Ministry of Agriculture, under strong pressure
from a number of farm-related organizations, also supported
the abstention. A November 13 letter signed by three major
agricultural organizations (COCERAL, FEFAC, and FEDIOL) urged
Agriculture Minister Jaime Silva, in his role as EU Farm
Council President, "take practical measures as soon as
possible, to avoid a major feed and food security crisis."
In particular, the letter encouraged the acceleration of the
EU GMO approval process and the "setting of a temporary
practical threshold for not yet approved GM events, which
have been assessed by EFSA or approved by another OECD
country." Emboff received a copy of the letter, which was
also sent to numerous EU functionaries, including all members
of the EU Commission. An Embassy contact also indicated that
multinational food processing companies throughout the EU may
be stepping into the debate more aggressively, pressuring EU
authorities for a faster biotech approval process and the
establishment of wider thresholds for IP soybeans.

Portugal Declares First GMO-Free zone in EU
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4. (SBU) On November 5, the Portuguese municipality of Lagos
in southern Portugal became the first legally-recognized
"GMO-free" zone in the European Union. While Portugal is one
of only seven EU countries to permit the planting of GMO
crops, the Ministry of Agriculture stands behind its
"neutral" national policy, which enables municipalities to
define local standards and practices for GMO usage. Portugal
is the fourth largest cultivator of GMO (Bt) maize in the EU,
following Spain, France, and the Czech Republic, with a total
of 4,500 hectares.

Comment
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5. (C) Despite Portugal's forward-leaning position on biotech
within the EU, Portuguese Minister for the Environment
Francisco Nunes Correia stated to the press that the
inability to achieve a qualified majority for or against the
Commission proposal to lift Austrian restrictions gives
member states "pause for thought." He pointed to the
motivation of some EU members' support of Austria as a
reflection of their belief that "a member state's will should
be respected" as it pertains to whether or not to introduce
GMO crops into the food supply. As such, Portugal was the
first country to allow municipalities to determine their own
GMO-status, resulting in the district of Lagos declaring
itself GMO free on November 5. We note that this is the same
district in which foreign activists destroyed a hectare of
biotech maize in August, resulting in public outrage and
official consternation (ref B). Biotech advocates will have
to work more energetically to build public support if they
hope to counter the stepped-up efforts of anti-GMO activists
in Portugal.
Hoffman