US embassy cable - 04ROME4797

UNCLAS  ROME 004797 
 
SIPDIS 
 
 
USDA FOR OSEC -- PENN 
USDA/FAS FOR SIMMONS, RIEMENSCHEIDER, AND D.YOUNG 
STATE PASS USTR 
 
SENSITIVE 
 
E.O. 12958:  N/A 
TAGS: ETRD, EAGR, TBIO, KSCA, IT, WTO 
SUBJECT: ITALY/BIOTECH: BAN ON FOUR GM CORN 
VARIETIES OVERTURNED BY ITALIAN COURT 
 
Ref: Rome 4563 
 
Sensitive But Unclassified -- Not For Internet Distribution 
 
1. (U) Summary. Italy's August 2000 ban on the commercialization of 
four biotech corn varieties was annulled on November 29, 2004, by a 
Lazio regional court. The ruling on the so-called Amato Decree result 
from a lawsuit filed in November 2000 by three multinational seed 
companies and an Italian biotech association.  The ruling concurred w 
a 2003 European Court of Justice opinion that such a ban was justifia 
only if a Member State could demonstrate scientific evidence of risk 
humans. Four years under the Amato Decree has affected U.S. exports t 
Italy; in particular, it obstructed Italian imports of corn products, 
corn gluten feed and corn oil. It remains to be seen how successful U 
corn exporters will be in reestablishing their presence in the Italia 
market.  In the meantime, last month's decree-law on coexistence, whi 
bans all GM cultivation in Italy through 2005 while Italy's regions d 
up their own coexistence plans, likely will continue to discourage pu 
acceptance of GM crops and products in Italy. End summary. 
 
2. (U) On November 29, 2004, the Regional Administrative Tribunal 
(TAR) of Lazio (which includes Rome) annulled the Amato Decree, 
which since August 2000 had banned commercialization in Italy of four 
biotech corn varieties:  BT 11 (Novartis), MON810 (Monsanto), MON 
809 (Monsanto) and T25 (Aventis). All four varieties had already been 
authorized by the EU and marketed for both food and feed uses. In its 
decision, the court noted that "in the years of commercialization 
experience in the whole EU territory, as well as in the United States 
are no reports that these products have caused serious and irreversib 
threats" to human health. The ruling quotes a series of scientific 
recommendations, coming from different sources, speaking in favor of 
the safety of these products. 
 
3. (SBU) The Amato decree had been enacted by the previous center-lef 
government primarily to defuse a political crisis (placating the Gree 
Party, which had threatened to withdraw from the government led by th 
Prime Minister Giuliano Amato if such a ban were not implemented), 
rather than in response to actual concerns about human health risks. 
November 2000, Assobiotec (the Italian organization of biotech 
companies) and three leading seed companies (Monsanto, Pioneer, and 
Syngenta) filed a lawsuit against the Amato decree in the Lazio TAR, 
claimed the decree violated several existing laws; the following year 
TAR suspended proceedings while seeking advice from the European 
Court of Justice (ECJ). The most recent TAR ruling concurred with the 
2003 ECJ ruling that a national government could temporarily restrict 
suspend trade in genetically modified foods only if it had detailed, 
grounds to suspect a risk to human health. 
 
4. (SBU) Following the coming to power in May 2001 of the current 
center-right government led by Prime Minister Silvio Berlusconi, the 
Agriculture Minister Giovanni Alemanno adopted a strong anti-biotech 
stance that included maintaining the Amato decree's ban.  Since fall 
Alemanno had promised to lift the Amato decree in conjunction with 
implementation of regulations on the coexistence of GM and non-GM 
cultivation. Even with the advent of such regulations by a decree law 
passed in November 2004 (reftel), however, Alemanno did not take any 
steps to keep his earlier promise. We are unaware of any public 
comments by Alemanno or other ministry officials on the Lazio court 
decision. 
 
5. (U) During the last four years, the Amato decree has had a signifi 
negative effect on shipments of all corn-based products from the Unit 
States to Italy. (Note: the United States cited the Amato Decree in i 
August 2003 filing with the WTO of a case against the EU for its 
moratorium on the approval of biotech products.)  Corn gluten feed 
exports dropped from almost 200,000 tons per year in 1998/99 (valued 
some $20 million) to virtually zero in 2003 and 2004. U.S. exports of 
corn oil to Italy, which totaled about 50,000 tons per year (valued a 
$50 million) before the implementation of the Amato decree, also 
dropped to zero in 2003 and 2004. Even during the 2003/04 marketing 
year, when domestic Italian corn production was severely affected by 
drought and Italy actively sought feed imports on the world market, I 
refused to allow imports of U.S. corn.  Sorghum imports were used for 
animal feed as a substitute for corn, the first time in a dozen years 
sorghum was imported (here the U.S. did benefit, with about 450,000 
tons of U.S. sorghum exported to Italy). 
 
6. (SBU) Comment.  While either side may appeal the Lazio TAR's 
decision, our contacts uniformly tell us that this is unlikely to hap 
Clearly the demise of the Amato decree is a positive and welcome 
development.  Nevertheless, the decree's nullification through a cour 
decision rather than through positive GOI action reflects the continu 
inability of the government to move towards science-based decisions 
involving the agricultural biotech sector.  It remains to be seen whe 
 
 
U.S. corn and corn products can reestablish their presence in the Ita 
market. In the meantime, last month's decree-law on coexistence, whic 
bans all GM cultivation in Italy through 2005 while Italy's regions d 
up their own coexistence plans, likely will continue to discourage pu 
acceptance of GM crops and products in Italy. Since the Italian 
Parliament must ratify the decree-law by late January (or act to exte 
deadline) in order for it to remain in effect, Embassy has initiated 
of contacts with key Italian lawmakers to encourage them to accept on 
permanent coexistence regulations that are science-based.  End commen 
 
 
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	2004ROME04797 - Classification: UNCLASSIFIED