PORT LOUIS' PROPOSAL FOR BIOTECHNOLOGY FUNDS

UNCLAS SECTION 01 OF 03 PORT LOUIS 000028

SIPDIS

DEPT FOR EB/TPP/ABT, OES/PCI, AND AF/E
DEPT PASS EB/TPP/MTAA/ABT - MSZYMANSKI, JBOBO
USDA FAS FOR OSTA/NTPMB - FNAIM, EPORTER, MCHESLEY
USDA FAS FOR OCBD - KSKUPNIK, JMAURER, MMOORE, DEVANS
USDA FAS FOR OCRA - KMCKINNELL, AFERRUS
PRETORIA FOR USDA/FAS SCOTT SINDELAR


E.O. 12958: N/A
TAGS: EAGR ECON ETRD KPAO PREL SENV TBIO MP
SUBJECT: PORT LOUIS' PROPOSAL FOR BIOTECHNOLOGY FUNDS

REF: A) STATE 129940 B) PRETORIA 002513


1. Summary: Embassy Port Louis requests funding from the FY 2009
Biotechnology Outreach Strategy Fund to provide a basic
biotechnology, biosafety, and food safety introduction to Mauritian
officials and other stakeholders. This proposal was developed by
FAS/Pretoria in coordination with Embassy Port Louis' ECON and PA
Sections. We also considered Government of Mauritius and NGO
representatives input to establish this proposal. End Summary.

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Regional Background
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2. Over the past four years, using funding from State/EEB and USDA,
FAS/Pretoria has developed relationships with key partners in
Southern Africa, the United States, and international organizations
to address regulatory and public acceptance issues pertaining to
biotechnology. As these relationships have developed, trust and
respect has also grown between the USG and the biotech industry,
public and private. To continue to build on these relationships,
FAS/Pretoria is requesting funding again this year to bring U.S.
experts to engage the local industry and stakeholders in discussions
on topics such as labeling, risk assessments, management of field
trials, and regional harmonization.


3. Misinformation and misperceptions about biotechnology threaten
the acceptance of U.S. agricultural and food products derived from
biotechnology in Southern Africa and threaten U.S. producers' access
to international markets. United States' exports to the largest
markets in the region (South Africa, Mauritius, Madagascar, and
Mozambique) grew over 30 percent from 2007 to 2008, due to increases
in exports of intermediate and consumer oriented agricultural goods,
such as vegetable oils and prepared sauces and cereals. It is
expected U.S. exports to these markets will continue to increase in
2009 and beyond as consumer demand increases and these countries
begin to diversify their suppliers to include the United States.
USDA cooperators' interest in conducting activities in these markets
is also on the rise, leading to increased interest in the United
States as a supplier.


4. Several key countries in Sub-Saharan Africa have passed
biosafety legislation in the past year, or are in the process of
formulating their policies and have requested help from USDA. These
countries include South Africa, Mozambique, Madagascar, and
Mauritius. All have drafted biosafety policies and are currently
working on implementation procedures. These countries are
pro-biotech, but admittedly lack the necessary understanding of many
aspects of biotech and genetic engineering. There is a significant
need for training on implementation procedures, characteristics of
efficient regulatory frameworks, producer and consumer awareness
strategies, et al.


5. The lack of basic understanding of agricultural biotechnology
among consumers, members of the media and political decision-makers
is a critical impediment to a rational, pragmatic acceptance of the
technology. The African public remains easily persuaded by
misinformation regarding the basic risks, benefits, and regulatory
approaches to best evaluate the benefits of adopting agricultural
biotechnology. Biosafety committees in the region remain inactive
or unsure where to focus their attention due to a lack of
understanding of the benefits of biotechnology. Due to this lack of
activity, science-based information in the regulatory
decision-making process is minimal and opponents of biotechnology
are the most vocal, which could be reflected in new regulations
concerning GMOs.

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Situation in Mauritius
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6. The Government of Mauritius (GOM) has requested assistance from
Embassy Port Louis and FAS/Pretoria in developing functioning
biosafety regulations, including food safety regulations, based on
sound science.


7. Mauritius, a small island economy, has always been a net food
importing country. Food imports currently accounts for USD 692

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million, equivalent to 18 percent of Mauritius' total import bill.
The major items imported include rice, wheat, flour, pulses, edible
oil, meat, and dairy products. The bulk of the corn and soybean used
as raw materials by the livestock feed factories are also imported.



8. Since only 30 percent of domestic food demand is produced
locally, Mauritius is looking towards biotechnology to improve
productivity and reduce reliance on imports. It is doubtful that
domestic production will ever reach high enough levels to fully
satisfy domestic food demand, and Mauritius will still rely on
imports to fill the gap and will need to develop regulations that
deal with GMOs in imported foods, since major suppliers, such as
South Africa, India, and the United States, produce GMOs.


9. Mauritius buys 140,000 metric tons of wheat annually mainly from
France (60 percent) and Australia (40 percent). In 2007, Mauritius
began diversifying wheat imports and imported more than USD 12
million of wheat from the United States. While there are no
approved GMO traits in wheat in the United States currently, that
may change in the near future. Given this, functioning biosafety
policies and regulations in Mauritius would ensure the United States
maintains its market share in Mauritian wheat into the future as new
products are developed.


10. In January 2009, the Minister of Agro Industry, Food Production
and Security announced his Strategic Plan on Food Security
2008-2011, a roadmap which indicates the way forward to increase
food production both locally and within the region. A Food Security
Fund of USD 32 million has been provided in the GOM 20008-09 Budget
for the implementation of the strategic plan. The strategy includes
a proposed Regional Food Company (RFC),which will take the form of
a public-private sector partnership company that will seek capital
to develop crop and livestock production in nearby countries,
primarily Madagascar and Mozambique. The GOM has already secured
5,000 hectares of land from Mozambique and negotiations with
Madagascar are ongoing. Initially, the RFC will develop potato, and
other vegetable production, moving into corn, soybean, rice, pulses
and eventually livestock/meat.

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Activity
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11. To provide the GOM and stakeholders the necessary information
and guidance to develop properly functioning biosafety policies,
based on sound-science, Post requests funding to bring two experts
to Mauritius to engage local officials and stakeholders on relevant
issues to include adventitious presence, risk assessments, labeling,
and regional harmonization.


12. The experts would travel to Mauritius for up to ten days to
engage with GOM representatives and other stakeholders in meetings,
workshops, and conferences, as well as field visits.


13. Post proposes to hold special meetings for media contacts
specifically associated with the agricultural and biotechnology
sectors to discuss biotechnology regulations and developments in the
United States. Additionally, PA will arrange press opportunities
for the visiting experts to engage journalists that cover
agriculture, agribusiness and biotechnology issues. These could
include roundtables with print media, one-on-one interviews, and
radio call-in programs.



14. Length of Program: Ten days

Cost for 2 experts:

TOTAL: $19,000.00

Airfare (US - Port Louis - US): $8,000.00
Hotel and Per Diem (10 days): $5,000.00
Meeting Rooms: $2,000.00
Miscellaneous (materials, invitations, etc) $4,000.00



15. Points of Contact at Post: (i)

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Economic/Commercial Officer Quentin Barber, Tel: (230) 202-
4410; Fax: (230) 208-9534; Email: BarberQR@state.gov or (ii)
Economic/Commercial Specialist Shariff Jathoonia, Tel:
(230)202-4464; Fax: (230) 208-9534; Email: jathoonisx@state.gov.

BLASER