PRETORIA'S PROPOSAL FOR BIOTECHNOLOGY FUNDS

UNCLAS SECTION 01 OF 03 PRETORIA 000100

SIPDIS

DEPT FOR EB/TPP/ABT, OES/PCI, AND AF/S
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

E.O. 12958: N/A
TAGS: EAGR ECON ETRD KPAO PREL SENV SF TBIO
SUBJECT: PRETORIA'S PROPOSAL FOR BIOTECHNOLOGY FUNDS

REF: A) STATE 129940 B) PRET 002513


1. Summary: Embassy Pretoria's proposal for the FY 2009
Biotechnology Outreach Strategy Fund requests funding to bring two
experts in the subject matter to South Africa to meet with
regulators, academia, consumers, and legislators on currently
relevant topics such as regulation of stacked genes, labeling of
genetically modified organisms (GMO) on foods, and liability and
redress. This proposal was developed among EST/Econ, PAS, and
USDA/FAS. Additionally, we considered GSA and NGO representatives
input to establish this proposal.


2. Additionally, since FAS/Pretoria is a regional post, covering
much of Southern Africa, FAS/Pretoria is coordinating with Embassies
in Madagascar, Mozambique, and Mauritius to submit separate
proposals requesting funding for similar programs to support a
regional biotech strategy. End Summary.

Pretoria
--------------


3. Over the past 4 years, using funding from State/EB 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, we
are requesting funding again this year to bring U.S. experts to
engage the local industry and stakeholders in discussions on
labeling of GMOs, liability and redress, stacked genes, and regional
harmonization.

Background
--------------

4. 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.


5. 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
include South Africa, Mozambique, Madagascar, and Mauritius. All
have drafted biosafety policies and are currently working on
implementation procedures. They are very 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.
Qframeworks, producer and consumer awareness strategies, et al.


6. 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 input, which could be reflected in new
regulations concerning GMOs.


7. One of the most significant new regulations is a South African
consumer protection bill that includes mandatory labeling of all
food products containing GMOs.(This bill is awaiting presidential
signature.) Introduced by the Department of Trade and Industry,
without consultation with the GMO Act competent authorities

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(Departments of Health and Agriculture),this bill requires
mandatory labeling of GMOs for all domestic and imported food
products.


8. The bill includes a significant change to product liability,
where a consumer no longer has to demonstrate that a producer was
negligent before receiving compensation for injury. The new
legislation puts the burden of proof on the producer or supplier,
meaning that a consumer can sue almost any producer or supplier for
harm or injury that is the result of a failed, defective, or unsafe
product. Almost every supplier must comply with the bill, even if
the supplier does not reside in South Africa. Foreign producers who
sell products through a South African agent for use in South Africa
would be included under the bill.


9. These regulations will have a significant impact not only on
regional trade, but also on U.S. exports to South Africa, since all
products will have to be labeled and producers/suppliers could be
held liable for any purported harm their product may have caused.



10. Currently, South Africa does not allow the import of U.S. maize
due to asynchronous approval of biotechnology events (i.e. the
United States has approved events that are not approved in South
Africa). If events approved in the United States were also approved
in South Africa, there would be a greater opportunity for trade.
The precedence this sets is significant as new events begin to
appear in different crops, such as wheat - the United State's top
export to the region - increasing the likelihood of an embargo on
U.S. wheat until the time the event has been approved in the
region.


11. Zero tolerance for adventitious presence is another issue under
discussion in these countries (South Africa, Madagascar, Mauritius,
and Mozambique) as is the management of stacked genes.


12. South Africa is seen as a leader in the biotechnology front
in Africa, and many neighboring countries look to South Africa, for
guidance and direction. South Africa is an ally of the United
States in that they have a progressive biosafety policy in place,
based on sound science and backed by an informed, forward-thinking
GMO Council and Advisory Committee. However, uneducated parties can
introduce legislation that will affect the administration of the
current GMO biosafety legislation, such as the pending consumer
protection bill. Other countries that look to South Africa for
guidance might adopt similar legislations that would affect trade.

Activity
--------------

13. Two U.S. experts will travel to South Africa for two weeks to
conduct meetings and workshops in different cities with legislators,
academia, consumers, and regulators to discuss relevant topics of
labeling of GMOs, liability and redress, management of stacked genes
and regional harmonization.


14. The U.S. experts would travel to Cape Town, the seat of
Parliament, for 5 days to meet with different Parliamentary
Portfolio committees. These committees are the key players in
passing laws and regulations relating to biotechnology. However,
many committee members are not educated about biotechnology and
often make decisions based on erroneous information.
Qoften make decisions based on erroneous information.


15. The U.S. experts would provide an overview and introduction to
biotechnology to committee members with appropriate portfolios. The
expert will meet separately with each committee to discuss issues
relevant to their sectors. The targeted Portfolio Committees are:

Environment Portfolio Committee - Discuss aspects of biotechnology
and biosafety as it relates to biodiversity. Reinforce the
environmental gains from reduced soil erosion and decreased
insecticide and herbicide use.

Agriculture Portfolio Committee - Discuss the latest in
biotechnology such as stacked genes, adventitious presence, etc.
Provide information on global use of biotechnology. Encourage the
development and commercialization of agbiotech products to meet the
unique needs of South Africa.


Trade and Industry Portfolio Committee - Discuss trade issues

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relating to biotechnology, including labeling of foods containing
GMOs, liability and redress, and the potential trade impacts of the
Cartagena Protocol on Biosafety.

Science and Technology Portfolio Committee - Discuss United States'
support of biotech businesses and ways to develop biotech
businesses. Stress the global scientific consensus on the safety of
agbiotech products demonstrated by the WTO final panel decision in
the EU case.


16. 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, PAS will arrange press opportunities
for the visiting expert to engage journalists that cover
agriculture, agribusiness and ag biotechnology issues. These could
include roundtables with print media, one-on-one interviews, radio
call-in programs, etc.



17. Additional opportunities for these experts will be arranged to
address biotech stakeholders include business breakfasts and
workshops in Pretoria, as well as meetings with the GMO Executive
Council and Advisory committees and relevant government agencies.



18. Length of Program: Two weeks (5 days in Pretoria and 5 days
in Cape Town, plus one weekend in between the two segments)

Cost for 2 experts:
TOTAL: $22,500

Airfare (US - Johannesburg - Cape Town - US):$8,000.00
Hotel and Per Diem (14 days): $8,500.00
Meeting Rooms: $4,000.00
Miscellaneous (materials, invitations, etc) $2,000.00


19. COMMENT: As stated in the summary, FAS/Pretoria is a regional
post responsible for coverage of most of Southern Africa, with no
staff resident in those countries. We are collaborating with the
our ECON/POL/PAS contacts in the missions in Antananarivo, Maputo,
and Port Louis to submit similar proposals for biotech outreach
events in those countries.



20. Understanding that each proposal must stand on its own merit,
we would like to have the group considered as a package that
demonstrates a regional approach to biotechnology in Southern
Africa. Regional trade plays a critical role in food security in
Southern Africa, and disparate regulations dealing with
biotechnology and its products could severely affect the flow of
products, including food aid, among the countries. This regional
approach is critical in ensuring regulations throughout the region
are harmonized as not to affect trade, development, humanitarian
assistance, and investment. END COMMENT.


19. Point of Contact: Kari Rojas, Agricultural Attach,
FAS/Pretoria, kari.rojas@fas.usda.gov 011-27-12-431-4057
BOST