DIRECTOR YOUNG ENLISTS HELP OF LY SPEAKER WANG ON

C O N F I D E N T I A L SECTION 01 OF 02 TAIPEI 001740

SIPDIS

SIPDIS

STATE ALSO FOR EAP/TC
USTR FOR STRATFORD AND ALTBACH
TREASURY FOR OASIA/TTYANG
USDA FOR FAS/OCRA/ASIA RADLER, HIGGISTON, AND BEILLARD
USDA FOR FAS/OSTA HAMILTON AND MAGINNIS

E.O. 12958: DECL: 08/03/2032
TAGS: ECON ETRD EAGR PGOV PREL KIPR TW
SUBJECT: DIRECTOR YOUNG ENLISTS HELP OF LY SPEAKER WANG ON
RACTOPAMINE ISSUE

REF: TAIPEI 1660

Classified By: Director Stephen M. Young, Reason(s): 1.4 (B/D).


1. (C) Summary: Legislative Yuan (LY) Speaker Wang Jin-pyng
(KMT) told the Director on July 31 that he understood U.S.
objections to Taiwan's "zero tolerance" policy toward
ractopamine use, and promised consult with other Taiwan
officials, including Vice Premier Chiou I-jen and Council of
Agriculture Chairman Su Jia-chyuan, to seek a solution. The
Director stressed that U.S. regulations on ractopamine
parallel the draft UN-affiliated CODEX and WHO standards
accepted by Australia, Japan, and Korea. Taiwan should
reconsider its ban on ractopamine, and in the meantime, the
Director suggested, Taiwan should temporarily adopt the CODEX
standard to allow U.S. pork shipments to continue. Wang
agreed that Taiwan's goal should be to reach a reasonable
standard toward ractopamine use. End Summary.


2. (C) The Director told Wang that he had met with Vice
Premier Chiou I-jen the preceding day (July 30) to discuss
the ractopamine problem, and that Chiou had suggested that
the Director meet with Wang, who enjoyed good relations with
Taiwan's farmers. Wang appeared somewhat surprised by this
recommendation, and told the Director that he had not spoken
personally with anyone from the pig farmers' lobby.
Therefore, he did not have a clear understanding of the
nature of the dispute. Wang acknowledged that he was on good
terms with many farm industry leaders, but denied having any
special influence with them. He indicated that the Executive
Yuan is responsible for decisions on these issues.


3. (C) The Director explained that U.S. pig farmers had been
using ractopamine for nearly ten years to produce leaner
pork. The UN-affiliated CODEX and WHO have also approved the
use of ractopamine for lean pork production. In the U.S.,
the Director continued, ractopamine use is strictly regulated
by the FDA and USDA. Under U.S. regulations, only minute
traces of the drug will be tolerated in pork destined for
human consumption. Other countries in the region, including
Australia, Japan and Korea, have accepted ractopamine as
safe, using the UN and CODEX regimes. Taiwan's decision to
adopt a "zero tolerance" policy toward ractopamine and other
feed additives contradicts world food safety standards, and
is not supported by science. If the matter is not resolved
quickly, the Director cautioned, it could damage overall
trade relations between the U.S. and Taiwan. The Director
asked for Wang's help in convincing Taiwan officials to
harmonize Taiwan's food safety policies with those accepted
by the international community.


4. (C) Wang told the Director that before speaking to other
government officials, he would first need to understand the
basis for Taiwan's "zero tolerance" policy, and compare it to
the FDA, UN and WHO standards. The Director urged Wang to
act quickly, to limit potential damage to the U.S.-Taiwan
trade relationship. Taiwan officials should already
understand the U.S. and international food safety standards
governing ractopamine use, he added, since Taiwan had been
accepting U.S. and other countries' pork imports for years.
U.S. pork producers continually have shipments inbound to
Taiwan, and an embargo would cause significant losses.
Taiwan must act quickly to rationalize its policies to
prevent this outcome. In the meantime, the Director urged
that, while Taiwan revisits its own ractopamine policy, it
should temporarily adopt the CODEX standard on ractopamine,
to allow U.S. pork shipments to continue. Wang agreed that
Taiwan's goal should be to reach a reasonable standard toward
ractopamine use.


TAIPEI 00001740 002 OF 002



5. (C) Wang promised to speak directly with Vice Premier
Chiou I-jen and Department of Health (DOH) Minister Hou
Sheng-mao. The Director agreed that Wang should speak with
Chiou, but urged Wang to meet with Council of Agriculture
Chairman Su Jia-chyuan, instead of DOH Minister Hou, who
might be unwilling to cooperate for fear of increased public
criticism. Wang agreed, and promised to contact the Director
in the coming days to keep him informed.
YOUNG