US embassy cable - 05ZAGREB510

UNCLAS  ZAGREB 000510 
 
SIPDIS 
 
 
SENSITIVE 
 
C O R R E C T E D C O P Y 
 
VIENNA FOR QUINTIN GRAY AND SARAH HANSON 
BUDAPEST FOR KARYN POSNER-MULLEN 
DEPARTMENT PLEASE PASS USTR 
USDA FOR PAUL SPENCER, BEVERLY SIMMONS, AND PETER SCHMEISSNER 
 
E.O. 12958: N/A 
TAGS: EAGR, SENV, ETRD, PGOV, HR, Trade 
SUBJECT: DRAFT GMO LAW BRINGS ANTI-BIOTECH FEELINGS BACK TO 
THE SURFACE 
 
REF: 04 ZAGREB 2196 
 
SUMMARY AND COMMENT 
------------------- 
 
1.  (SBU) A proposal to consolidate Croatia's restrictive legislative 
framework for the introduction of genetically modified seeds has 
brought public outrage at the thought of GMOs in Croatia back to the 
surface.  While Parliament seems set to institutionalize a 
precautionary principle approach for seed imports, some vocal MPs 
have seized the opportunity to call for an outright ban on all GMO 
product raising the prospect of a national referendum on the GMO 
question. Despite the controversy, the draft law would change little, 
moving coordinating responsibility from the Ministry of Culture to the 
equal disinterested Ministry of Health and establishing a testing and 
licensing regime so restrictive it constitutes a de facto ban. 
Legislation on GMO foods remains unchanged.  Limited lab capacity will 
challenge the GoC's ability to implement testing thresholds and compel 
a very selective and subjective method of choosing samples for 
testing. While GoC officials acknowledge legal obligations to open 
their agricultural market to foreign imports, most openly acknowledge 
that Croatia is positioning itself as a GMO-free, "healthy" tourist 
destination.  END SUMMARY AND COMMENT. 
 
PARLIAMENT SENDS DRAFT BILL BACK FOR REDRAFTING 
--------------------------------------------- -- 
 
2.  (SBU) A draft GMO law currently before Parliament has done nothing 
to cool tempers over the highly emotional GMO issue in Croatia.  On 
March 22, the Parliamentary Committee on Agriculture and Forestry 
debated and rejected upon second reading a draft GMO law.  Members of 
the governing Croatian Democratic Union (HDZ) and opposition Social 
Democratic Party (SDP) supported the draft, while most other parties 
have openly opposed any measure short of an outright ban.  Meeting 
the afternoon with the DCM, Committee Chairman Bozidar Pankretic 
stated that the problem with the legislation was not that MPs lacked 
sufficient scientific advice but rather that science had reached no 
definitive conclusions on the safety of GMO seeds.  Pankretic was 
realistic about Croatia's WTO obligations, but acknowledged most MPs 
are very responsive to public fears that the bill is excessively 
permissive.  Key concerns included cross-contamination of non-GMO 
fields, squeezing out small domestic farmers while leaving the entire 
sector vulnerable to foreign seed providers, and a lack of proof that 
modified genes in crops cannot "jump" to digestive bacteria.  Several 
MPs for the first time raised the issue of a nation-wide referendum 
on banning all GMO seed imports.  Looking ahead, Pankretic left open 
the possibility that the GoC might still approve the draft text 
without further edits. 
 
DRAFT GMO LAW SPARKS CONTROVERY BUT CHANGES LITTLE 
--------------------------------------------- ----- 
 
3.  (SBU) At the GoC's request, the Ministry of Culture recently 
drafted legislation that would consolidate several laws (reftel) 
governing biotechnology into a single GMO law.  The proposed language 
only addresses the introduction into nature of genetically-modified 
seeds, currently covered under the extant 2003 Law on Nature 
Protection; the import and licensing of GMO foods will continue to be 
governed by the 2003 Law on Food and Feed.  The draft language moves 
responsibility for coordinating Croatia's GMO policy from the 
Ministry of Culture Division for Nature Protection to the Ministry of 
Health Division for Sanitary Inspection.  The law would also establish 
a scientific advisory council consisting of an expert committee for 
contained use and one for introduction into the market.  Though the 
draft law would on the surface establish a legislative framework for 
the import, licensing, and planting of seeds containing GMO content 
in Croatia, according to key GoC officials the language is 
"cumbersome" enough to constitute a de facto ban on seed imports. 
The threshold for GMO content in seeds is 0.0%.  The law also 
contains numerous safeguard clauses prohibiting planting of GMO 
seeds in any 
protected nature are national park, or other area of ecological 
importance undefined by any legislation.  Lastly, the law for 
the first time introduces a break clause allowing the GoC to 
temporarily or even permanently suspend the import or planting of 
GMO seeds if it believes doing so would protect public health or the 
environment. 
 
FOOD REGULATION VIRTUALLY UNCHANGED 
----------------------------------- 
 
4.  (U) The 2003 Law on Food and Feed will continue to govern the 
possible import, licensing, and labeling of any foods containing GMO 
content.  Under the law, the threshold for GMO content in food depend 
upon whether or not the product has previously been tested and 
licensed in the EU.  If the product has been accepted by an EU member 
state, it does not need to be labeled for sale on the Croatian market 
provided separate tests within Croatia confirm the product contains 
less than 0.9% GMO content.  The threshold drops to 0.0% for products 
that have 
 
 
not yet been accepted by an EU member.  All new foods will require a 
risk assessment concluded by a licensed Croatian institution; foreign 
(even EU) risk assessments will not be accepted for licensing foods 
containing GMO content.  A recently created Food Agency, directed by 
Dr. Boris Antunovic, will be responsible for coordinating testing, 
licensing, and labeling of novel foods. Post has recently nominated 
D Antunovic for a European regional IV program on biotechnology and 
food safety. 
 
TESTING CAPABILITIES OUT OF SYNCH WITH LEGISLATION 
--------------------------------------------- ----- 
 
5.  (SBU) Dr. Peter Schmeissner, a biotech specialist at USDA, recent 
visited Zagreb from March 21-23 for a biotech-themed IIP Speaker's 
Program.  During Dr. Schmeissner's visit, he had a chance to tour 
Croatia's single laboratory (housed at the Institute for Public 
Health and overseen by IV returnee Dr. Krunoslav Capak) capable of 
testing both foods and seeds for GMO content.  According to Dr. 
Schmeissner, the lab was of acceptable quality but has a severely 
limited capacity meaning the Institute must be very selective when 
deciding what products to test.  Dr. Schmeissner also questioned 
whether the lab's equipment allowed for accurate enough results to 
enforce a 0.9% threshold for food.  A large circulation daily 
recently 
carried a large article criticizing the lab for not yet receiving ISO 
certification a process that by this point is mostly a question of 
time rather than further financial investment.  The article noted with 
disapproval that the GoC's 9 million kuna ($1.6 million) investment in 
the IPH lab has yet to translate into a national facility capable of 
reliably testing for GMO content. 
 
GMOS AND THE MARKET FOR "HEALTHY" FOOD 
-------------------------------------- 
 
6.  (SBU) In separate meetings, interlocutors at the Ministry of 
Agriculture, the Ministry of Health, and the Institute for Public 
Health acknowledged the draft GMO law constitutes a virtual ban on 
GMO 
seeds, offering that anything else would be politically impossible. 
The top Ministry of Health official for biotechnology, who will take 
over umbrella coordination under the new legislation, told Emboffs 
that the GoC sees little need to implement a procedure to allow GMO 
seed imports given a lack of agricultural problems (rain, pests, or 
soil) 
that might justify their usage.  The official explained that Croatia 
clearly sees its future as a "niche market for healthy food" (NOTE: 
In Croatian, the word "healthy" encompasses everything from 
conventional organic to non-GMO products.) Opponents to GMOs in 
Croatia have been emboldened by the perceived success of Austria, 
Slovenia, and to a degree Italy in standing up to the European 
Commission on GMOs; complying with EU regulations has little meaning 
so 
long as Croatia can position itself within a regional group of 
"healthy," GMO-free market. 
 
DELAWIE 
 
 
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