US embassy cable - 02ROME3390

UNCLAS SECTION 01 OF 02 ROME 003390 
 
SIPDIS 
 
SENSITIVE 
 
EB FOR A/S WAYNE, PDAS DONNELLY, DAS GADSDEN 
EB/TPP/ATT FOR PEREZ 
E FOR SHUB 
EUR/ERA FOR HEN-NIL 
OES FOR A/S TURNER, PDAS ROCK 
                       UNCLASSIFIED 
 
PAGE 02        ROME  03390  01 OF 02  101320Z 
STATE PASS USTR FOR STROJE, NOVELLI 
STATE PASS USDA FOR APHIS:SMCCAMMON, USDA/FAS:BLUM, 
USDA/FAS/ITT:EJONES, USDA/FAS/OA:SLUTSKY, USDA/FAS/ITP 
MACKEY, RICHIE, AND OS HEGWOOD 
STATE PASS FDA FOR EFLAMM 
NSC FOR EDSON 
 
E.O. 12958: N/A 
TAGS: EAGR, ECON, ETRD, ECON, ETRD, EU, EUEAGR 
SUBJECT: ITALY SPLIT ON BIOTECH TRACEABILITY AND LABELING, 
STILL THINKING ABOUT EU CHEMICALS REFORM 
 
REF: A. STATE 98591 
     B. STATE 52550 
 
1. THIS IS AN ACTION MESSAGE FOR DEPT.; SEE PARA 8.  ESTCOUNS 
MET WITH MINISTRY OF ENVIRONMENT EU AFFAIRS OFFICERS ON MAY 
30 TO DISCUSS THE EU PROPOSALS FOR TRACEABILITY AND LABELING 
OF GMO EVENTS, AND TO DISCUSS ITALIAN VIEWS TOWARD EU 
CHEMICALS REFORM. 
 
2. FINDING THE RIGHT GOI MINISTRY WITH WHICH TO DISCUSS 
TRACEABILITY AND LABELING WAS A CHALLENGE.  WE WERE REBUFFED 
BY MFA, FOREIGN TRADE, AGRICULTURE, HEALTH AND EU AFFAIRS. 
ALL POINTED US TO THE MINISTRY OF GOVERNMENT (MOG), WHICH HAS 
HANDLED THE ACCOUNT WITHOUT MUCH ENTHUSIASM, MUCH PROFILE, OR 
MUCH ATTENTION BEYOND THE TECHNICAL LEVEL. 
 
3. HEAD OF MOE'S EU AFFAIRS OFFICE GIULIANA GASPARINI TOLD 
EST COUNS THAT THE GOI HAD NOT TAKEN A CONSOLIDATED POSITION 
ON THE TRACEABILITY AND LABELING PROPOSALS BECAUSE OF THE NOW 
                       UNCLASSIFIED 
 
PAGE 03        ROME  03390  01 OF 02  101320Z 
FAMILIAR SPLIT BETWEEN THE MINISTRY OF HEALTH AND THE 
MINISTRY OF AGRICULTURE.  ACCORDING TO GASPARINI, HEALTH 
OPPOSES BIOTECH TRACEABILITY UNLESS HEALTH ISSUES (POSSIBLE 
ALLERGENS, CHANGED NUTRITIONAL COMPOSITION) ARE INTRODUCED BY 
THE BIOTECH PRODUCT.  SHE SAID AGRICULTURE BELIEVES THAT THE 
PROPOSED TRACEABILITY RULES DO NOT GO FAR ENOUGH (WE KNOW 
THAT MINISTER OF AGRICULTURE ALEMANNO LOBBIED HEAVILY TO EU 
PARLIAMENTARIANS BEFORE THE EP VOTE), AND SHOULD INCLUDE 
TRACEABILITY THROUGH ANIMAL PRODUCTS WHEN BIOTECH FEED IS 
INVOLVED.  THE MINISTRIES AGREE THAT LABELING IS NECESSARY TO 
RESPOND TO CONSUMER DEMANDS. 
 
4. WITHIN THE MINISTRY OF ENVIRONMENT ITSELF, A SIMILAR SPLIT 
EXISTS.  CONSULTANT SPECIALISTS WITHIN MOE FROM THE FORMER 
AMATO GOVERNMENT ARE WORKING ON TRACEABILITY AND LABELING. 
THESE INCLUDE FORMER GREEN PEACE ANTI-GMO ACTIVISTS WHO SEE 
BURDENSOME AND EXACTING T AND L AS A WAY TO BLOCK GMOS IN 
ITALY AND THE EU, ACCORDING TO GASPARINI.  A MORE MODERATE 
FACTION WITHIN MOE, LED BY DG FOR INTERNATIONAL AFFAIRS CLINI 
AND INCLUDING GASPARINI HERSELF, ARE ARGUING FOR REALISTIC 
RULES THAT CAN BE IMPLEMENTED.  GASPARINI EXPLAINED THAT THIS 
WOULD INCLUDE "REASONABLE" THRESHOLDS FOR ADVENTITIOUS 
PRESENCE (AP) (BY WHICH IS MEANT 0.3-0.7 PERCENT FOR FOODS 
AND FEEDS) AND SOME ACCOMMODATION ON BIOTECH PRODUCTS LIKE 
OILS WHICH ARE INDISTINGUISHABLE FROM CONVENTIONAL PRODUCTS 
AFTER PROCESSING.  THE ISSUE OF AP IN SEEDS FOR PLANTING IS 
ESPECIALLY DIFFICULT FOR ITALY BECAUSE THE EU PROPOSALS DO 
NOT SPECIFICALLY ADDRESS SEEDS.  CONSEQUENTLY, THE MINISTRY 
OF AGRICULTURE HAS BEEN ABLE TO ARGUE ITS ZERO THRESHOLD 
PROPOSAL AS A MEMBER STATE'S RIGHT TO SET STANDARDS AND RULES 
WHERE NONE ARE PROVIDED BY BRUSSELS. 
                       UNCLASSIFIED 
 
PAGE 04        ROME  03390  01 OF 02  101320Z 
 
5. GASPARINI SAID THAT THE MINISTER OF ENVIRONMENT IS MOVING 
CAUTIOUSLY TO FIND A BRIDGE FROM ITALIAN VIEWS THROUGH THE EU 
PROPOSALS TO A MORE "OPEN" APPROACH TO BIOTECHNOLOGY BASED ON 
SCIENCE.  SHE DID NOT EXPECT MUCH CLARIFICATION OF ITALIAN 
POSITIONS IN THE NEAR TERM, NOTING THAT THE SPANISH 
PRESIDENCY HAS DECIDED NOT TO DEAL FURTHER WITH 
BIOTECHNOLOGY, AND THAT THE DANES HAD SET THE FIRST 
ENVIRONMENT COUNCIL MEETING OF THEIR PRESIDENCY FOR 
MID-OCTOBER. 
 
6. COMMENT: THE TRACEABILITY AND LABELING ISSUE IS MAKING ITS 
WAY SLOWLY UPWARD FROM TECHNICIAN-BUREAUCRATS WHO REMAIN 
STEADFASTLY ANTI-BIOTECH.  MOE REPRESENTATIVES AT A RECENT 
MEETING CONVENED BY THE TECHNICAL SECRETARIAT AT THE EU 
AFFAIRS MINISTRY DID NOT CLEAR THEIR VIEWS WITH THE 
MINISTER'S OR DG'S OFFICE AND JOINED THE AG MINISTRY ON 
ARGUING THAT THE EU PROPOSALS WERE TOO LIBERAL.  LOWER 
RANKING MOE OFFICIALS ARE RELUCTANT TO SPEAK AGAINST THE 
MEMBER STATE "CONSENSUS" AT TECHNICAL MEETINGS IN BRUSSELS. 
AT THE DIRECTOR GENERAL LEVEL, THERE IS GROWING RECOGNITION 
WITHIN THE MOE THAT A COHERENT POLICY IS REQUIRED FOR THE 
LONG TERM. END COMMENT. 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ8772 
 
PAGE 01        ROME  03390  02 OF 02  101320Z 
ACTION EUR-00 
 
INFO  LOG-00   AGRE-00  AID-00   CEA-01   CIAE-00  COME-00  CTME-00 
      DODE-00  ITCE-00  DOTE-00  SRPP-00  EB-00    EXME-00  E-00 
      FAAE-00  UTED-00  VC-00    FRB-00   HHS-01   H-01     TEDE-00 
      INR-00   ITC-01   L-00     VCE-00   AC-01    NSAE-00  OES-01 
      OMB-01   OPIC-01  ACE-00   SP-00    SSO-00   SS-00    STR-00 
      TEST-00  TRSE-00  USIE-00  DRL-02   G-00     SAS-00     /010W 
                  ------------------C92039  101321Z /38 
R 101327Z JUL 02 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 4734 
INFO EU MEMBER STATES COLLECTIVE 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
NSC WASHDC 
USDA WASHDC 
 
UNCLAS SECTION 02 OF 02 ROME 003390 
 
SIPDIS 
 
SENSITIVE 
 
EB FOR A/S WAYNE, PDAS DONNELLY, DAS GADSDEN 
EB/TPP/ATT FOR PEREZ 
E FOR SHUB 
EUR/ERA FOR HEN-NIL 
OES FOR A/S TURNER, PDAS ROCK 
STATE PASS USTR FOR STROJE, NOVELLI 
                       UNCLASSIFIED 
 
PAGE 02        ROME  03390  02 OF 02  101320Z 
STATE PASS USDA FOR APHIS:SMCCAMMON, USDA/FAS:BLUM, 
USDA/FAS/ITT:EJONES, USDA/FAS/OA:SLUTSKY, USDA/FAS/ITP 
MACKEY, RICHIE, AND OS HEGWOOD 
STATE PASS FDA FOR EFLAMM 
NSC FOR EDSON 
 
E.O. 12958: N/A 
TAGS: EAGR, ECON, ETRD, EU 
SUBJECT: ITALY SPLIT ON BIOTECH TRACEABILITY AND LABELING, 
STILL THINKING ABOUT EU CHEMICALS REFORM 
 
------------------------------------- 
EU CHEMICALS REFORM ON THE SLOW TRACK 
------------------------------------- 
 
7. GIORGIO SUBINI, WITHIN THE SAME MOE OFFICE, IS THE 
TECHNICAL EXPERT PARTICIPATING IN THE EU CHEMICAL REFORM 
PROCESS.  WHEN REMINDED ABOUT U.S. VIEWS (REF B), SUBINI SAID 
HE UNDERSTOOD OUR CONCERNS ABOUT COSTS, SINCE THESE WERE THE 
CONCERNS OF SMALL- AND MEDIUM-SIZED BUSINESSES IN ITALY.  HE 
ADMITTED THAT HE HAD YET TO BEGIN DISCUSSIONS WITH ITALIAN 
INDUSTRY, THOUGH HE PLANS TO DO SO IN THE NEAR FUTURE.  HE 
ALSO SAID THAT HE DID NOT BELIEVE THE TECHNICAL DISCUSSIONS 
WERE PROCEEDING VERY QUICKLY FROM THE CONCEPTUAL PROBLEM OF 
MANAGING 100,000 CHEMICALS FROM THE "POLLUTER PAYS" PRINCIPLE 
TO PRACTICAL WORK. 
 
8. COMMENT AND ACTION REQUEST: THE SIZE AND ECONOMIC 
IMPORTANCE OF ITALY'S CHEMICAL INDUSTRY (WITH A U.S. 
INVESTMENT OF USD 2.3 BILLION), AND THE LACK OF SIGNIFICANT 
OUTREACH BY MOE, MAY CREATE AN OPPORTUNITY.  WE WOULD LIKE TO 
                       UNCLASSIFIED 
 
PAGE 03        ROME  03390  02 OF 02  101320Z 
BRIEF SELECTED CHEMICAL MANUFACTURERS IN ITALY ON THE 
POSSIBLE CONSEQUENCES OF THE EU REFORM, AND WOULD APPRECIATE 
KNOWING ABOUT EFFORTS MADE ALREADY BY INDUSTRY TO CONTACT 
ITALIAN FIRMS. 
SEMBLER 
 
                       UNCLASSIFIED 
 
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 2002ROME03390 - Classification: UNCLASSIFIED