US embassy cable - 03ZAGREB2687

UNCLAS ZAGREB 002687 
 
SIPDIS 
 
 
SENSITIVE 
 
STATE FOR EB/TPP/ATP BYODER 
USDA FAS FOR DLP HWETZEL AND KWAINIO 
VIENNA FOR FAS 
 
E.O. 12958: N/A 
TAGS: EAGR, ETRD, ECON, HR, Trade 
SUBJECT: CROATIA REACTS TO U.S. CASE OF BSE, BANS IMPORTS 
 
REF: STATE 348293 

SUMMARY 
------- 
 
1.  (U) ON DECEMBER 24, CROATIA BANNED THE IMPORT OF U.S. 
BEEF IN RESPONSE TO NEWS REPORTS OF THE FIRST CASE OF BSE IN 
THE U.S.  ON DECEMBER 29, EMBASSY PRESENTED REFTEL 
NOTIFICATION OF THE BSE CASE IN U.S. TO ASSISTANT MINISTER OF 
AGRICULTURE MIROSLAV BOZIC ON DECEMBER 29.    WHILE CROATIA 
DOES NOT IMPORT BEEF FOR HUMAN CONSUMPTION FROM THE U.S., 
SOME PET FOOD IMPORTS WILL PROBABLY BE AFFECTED.  END SUMMARY. 
 
NOTIFICATION DELIVERED 
---------------------- 
 
2.  (SBU) WE DELIVERED REFTEL NOTIFICATION OF THE BSE CASE IN 
WASHINGTON STATE TO ASSISTANT MINISTER BOZIC ON DECEMBER 29, 
AND PASSED A COPY TO THE MFA AS WELL.  BOZIC WAS AWARE OF THE 
CASE, BUT THANKED US FOR OUR PROMPT OFFICIAL NOTIFICATION. 
WE DISCUSSED THE DECREE ISSUED BY THE MINISTRY ON DECEMBER 24 
WHICH ADDED THE U.S. TO THE LIST OF COUNTRIES FROM WHICH BEEF 
CANNOT BE IMPORTED.  BOZIC EMPHASIZED THAT THE BAN WAS 
TEMPORARY, THOUGH HE ADMITTED THAT NO COUNTRY HAD BEEN TAKEN 
OFF THE LIST SINCE IT WAS ESTABLISHED.  HE THOUGHT THAT MIGHT 
CHANGE IN THE FUTURE, PERHAPS AS EARLY AS IN THE FIRST HALF 
OF 2004, BECAUSE OF PRESSURE FROM THE EU.  BOZIC DID NOT 
THINK THE BAN WOULD AFFECT PET FOOD IMPORTS, WHICH HE 
UNDERSTOOD TO BE SOURCED FROM EU-ACCEPTED SOURCES, AND ASKED 
TO BE ADVISED IF THERE WERE ANY PROBLEMS. 
 
3.  (U) BOZIC NOTED THAT CROATIA STILL DOES NOT HAVE A SINGLE 
    REPORTED CASE OF BSE.  ALL COWS OVER 24 MONTHS OF AGE ARE 
EXAMINED UPON SLAUGHTER, AS WELL AS ANY COWS OF ANY AGE THAT 
EXHIBIT SUSPICIOUS SYMPTOMS. 
 
CROATIA BANS U.S. BEEF 
---------------------- 
 
4.  (U) IN A DECREE ISSUED DECEMBER 24 (WHICH WILL TAKE 
EFFECT WHEN PUBLISHED, PROBABLY ON DECEMBER 30), CROATIA 
ADDED THE UNITED STATES TO A LIST OF COUNTRIES FROM WHICH 
BEEF PRODUCT IMPORTS ARE BANNED.  THE LIST NOW NUMBERS 24, 
AND INCLUDES CANADA AND ALL EU MEMBERS EXCEPT FOR SWEDEN. 
BEEF, BOVINE EGG CELLS, BEEF BY-PRODUCTS, AND MEAL FROM BEEF 
PRODUCTS FROM THESE COUNTRIES ARE BANNED.  THE DECREE 
SPECIFICALLY EXEMPTS MILK, BOVINE SPERM AND EMBRYOS, GELATIN 
AND COLLAGEN (EXCEPT FROM PORTUGAL, IRELAND AND GREAT 
BRITAIN), AND BOVINE MATERIALS FOR PURELY INDUSTRIAL USE. 
THE DECREE ALSO EXEMPTS FOOD FOR CATS AND DOGS, AS LONG AS IT 
IS NOT FROM RUMINANTS, AND ANY RUMINANT-BASED RAW MATERIALS 
COME FROM A COUNTRY WHICH HAS NOT HAD ANY REGISTERED CASES OF 
BSE. 
 
EFFECTS ON US TRADE 
------------------- 
 
5.  (SBU)  THE U.S. DOES NOT CURRENTLY EXPORT BEEF TO 
CROATIA, ALTHOUGH IT THEORETICALLY COULD (BEFORE THE DECREE) 
FROM ANY PLANT CERTIFIED TO EXPORT TO THE EU.  THE U.S. DID 
EXPORT APPROXIMATELY $518,000 WORTH OF PET FOOD TO CROATIA IN 
2002, AND U.S. BRANDS PRODUCED IN EUROPE AND EXPORTED TO 
CROATIA PROBABLY DO CONTAIN MANY U.S. INPUTS.  WE CONTACTED 
    MASTER FOODS, PROBABLY THE BIGGEST IMPORTER OF U.S. BRAND PET 
FOOD INTO CROATIA.  JASMINKA ILICIC, HEAD OF INTERNATIONAL 
RELATIONS, TOLD US THAT SHE EXPECTS THE BAN TO AFFECT THEIR 
IMPORTS IN THE MEDIUM-TERM.  FOR NOW, THE COMPANY HAS 
REQUESTED A WAIVER FROM THE GOC FOR PET FOOD PRODUCED BEFORE 
THE DATE OF THE BAN.  IT ASKED FOR AND RECEIVED A SIMILAR 
WAIVER WHEN CROATIA BANNED BEEF PRODUCT IMPORTS FROM CANADA. 
 
PRESS COVERAGE 
-------------- 
 
6.  (U) CROATIAN MEDIA GAVE ONLY MODERATE COVERAGE TO THE BSE 
CASE IN THE U.S.  ONE PAPER CITED THE NEW YORK TIMES 
INTERVIEW WITH NOBEL PRIZE WINNER DR. STANLY PRUSINER, IN 
WHICH HE CRITIZED THE USG FOR NOT HAVE DONE MORE INTENSIVE 
TESTING.  ANOTHER JOURNALIST SPECULATED THAT WHEN CONSUMPTION 
OF BEEF FELL IN THE U.S., THERE WOULD BE PRESSURE ON THE PART 
OF U.S. FARMERS TO OBTAIN EXPORT SUBSIDIES AND TO DUMP CHEAP 
BEEF ON THE WORLD MARKETS, HARMING CROATIA