US embassy cable - 03ROME522

C O N F I D E N T I A L SECTION 01 OF 03 ROME 000522 
 
SIPDIS 
 
STATE PASS USTR 
GENEVA FOR USTR 
 
E.O. 12958: DECL: 02/07/2008 
TAGS: ETRD, IT, KIPR, IT, KIPR, PREL, EUN, PREL ETRD, EUN 
SUBJECT: SCENESETTER FOR USTR ZOELLICK'S FEBRUARY 11 
MEETING WITH ITALIAN VICE MINISTER FOR FOREIGN TRADE ADOLFO 
URSO 
 
REF: A. ROME 28 
 
     B. 02 ROME 6137 
 
CLASSIFIED BY: ECONOMIC MINISTER-COUNSELOR SCOTT KILNER FOR REASONS 1.5 
(B) AND (D) 
 
1. (C) SUMMARY: THE VISIT OF VICE MINISTER FOR FOREIGN TRADE 
ADOLFO URSO TO WASHINGTON IS A KEY OPPORTUNITY TO ADVOCATE 
FOR U.S. TRADE PRIORITIES, BOTH IN THE U.S.-EU CONTEXT AS 
WELL AS IN THE DOHA NEGOTIATIONS.  URSO IS PRO-U.S., PRO-FREE 
TRADE, AND INTERESTED IN HAVING ITALY BECOME A MORE ACTIVE 
FORCE ON TRADE MATTERS WITHIN THE EU, ESPECIALLY DURING THE 
UPCOMING ITALIAN PRESIDENCY.  URSO HAS PUBLICLY STATED THAT 
HE WOULD LIKE TO DISCUSS WITH USTR ZOELLICK THE EU MORATORIUM 
ON AGRICULTURAL BIOTECH APPROVALS, AS WELL AS ACCESS TO 
MEDICINE UNDER TRIPS.  HIS STAFF HAS TOLD US HE WILL BE 
PREPARED TO ENGAGE ON A BROAD RANGE OF PROMINENT TRADE 
ISSUES, INCLUDING FSC AND STEEL, AND THE PROPOSALS ON BOTH 
AGRICULTURAL AND NON-AGRICULTURAL TRADE FOR THE WTO 
NEGOTIATIONS.  THE MEETING WITH URSO IS ALSO AN OPPORTUNITY 
TO PUSH THE GOI TO ADOPT A SCIENCE-BASED POSITION ON BIOTECH 
AND TO EXERCISE LEADERSHIP ON THE ISSUE DURING ITS EU 
PRESIDENCY.  END SUMMARY. 
 
2. (C) USTR ZOELLICK'S MEETING WITH DEPUTY MINISTER FOR 
FOREIGN TRADE ADOLFO URSO COMES AS HE AND HIS STAFF ARE 
PREPARING TO ACCELERATE ITALIAN TRADE ACTIVITY IN 
ANTICIPATION OF THE ITALIAN EU PRESIDENCY BEGINNING JULY 1. 
WHILE IT MAY BE UNREALISTIC TO EXPECT ITALY TO VAULT TO THE 
FOREFRONT AMONG EU MEMBER STATES, WE DO BELIEVE THE GOI WILL 
TRY TO EXERT STRONGER-THAN-USUAL INFLUENCE ON TRADE MATTERS 
THIS YEAR.  THE U.S. SHOULD TAKE ADVANTAGE OF THE OPPORTUNITY 
OF A WILLING ITALY (AND A PRO-U.S. URSO) TO PUSH THE GOI TO 
PLAY SUCH A ROLE.  A MORE FORCEFUL GOI COULD POTENTIALLY PLAY 
A CONSTRUCTIVE ROLE WITHIN THE EU ON A NUMBER OF TRADE ISSUES 
OF IMPORTANCE TO THE U.S. 
 
3. (SBU) URSO,S OFFICE HAS PUBLICIZED HIS MEETING WITH USTR 
ZOELLICK AS AN OPPORTUNITY TO DISCUSS BOTH A POSSIBLE WTO 
CASE ON THE EU MORATORIUM ON AG BIOTECH APPROVALS, AS WELL AS 
THE ONGOING TRIPS NEGOTIATIONS ON ACCESS TO MEDICINE.  AMEDEO 
TETI, THE RECENTLY APPOINTED DIRECTOR GENERAL FOR TRADE 
AGREEMENTS (WHO WILL ACCOMPANY URSO TO THE U.S.) HAS TOLD US 
THAT, IN ADDITION, URSO IS PREPARING TO DISCUSS THE RANGE OF 
PROMINENT U.S.-EU TRADE ISSUES: FSC, STEEL, THE WTO 
AGRICULTURAL NEGOTIATIONS (INCLUDING GEOGRAPHIC INDICATORS), 
AND THE WTO MARKET ACCESS NEGOTIATIONS.  HE MAY ALSO INVITE 
USTR ZOELLICK TO ITALY IN LATE SPRING TO JOIN HIM IN A 
MEETING WITH LAMY AND OTHER TRADE MINISTERS (THOUGH OUR GOI 
CONTACTS HAVE NOT MENTIONED THIS IDEA OF A TRADE 
MINI-MINISTERIAL SINCE THEY INITIALLY SUGGESTED IT IN 
DECEMBER - REF A). 
 
U.S. AND EU WTO PROPOSALS 
------------------------- 
 
4. (SBU) COMMENTING ON THE AGRICULTURAL AND NON-AGRICULTURAL 
PROPOSALS OF THE U.S. AND THE EU, TETI RECENTLY TOLD US THAT 
HE IS OPTIMISTIC THAT THE U.S. AND EU WILL ULTIMATELY BE ABLE 
TO BRIDGE DIFFERENCES IN BOTH AREAS.  HE ALSO EMPHASIZED THAT 
GEOGRAPHICAL INDICATORS ARE OF SPECIAL CONCERN TO ITALY, AND 
REPEATED A FAMILIAR GOI THEME THAT PROGRESS IN BOTH GMOS AND 
GI COULD BE ADVANCED IN TANDEM.  WE EXPECT URSO TO REPEAT 
THIS IDEA. 
 
TRIPS/MEDICINE 
-------------- 
 
5. (U) URSO HAS PUBLICLY AFFIRMED THE GOI,S SUPPORT FOR EU 
TRADE COMMISSIONER LAMY,S PROPOSAL, AS OUTLINED IN HIS 
JANUARY 7 LETTER TO USTR ZOELLICK.  URSO,S STATEMENT NOTED 
HIS HOPE THAT LAMY,S IDEA OF GIVING THE WORLD HEALTH 
ORGANIZATION A ROLE IN DETERMINING THE SCOPE OF DISEASE WOULD 
ALLEVIATE U.S. CONCERNS.  HE ALSO LAMENTED THE INABILITY OF 
THE TRIPS COUNCIL TO REACH AN ACCORD BY THE END OF 2002 AS A 
TERRIBLE SIGN TO THE DEVELOPING WORLD, ESPECIALLY THOSE 
COUNTRIES SUFFERING THE MOST FROM EPIDEMIC DISEASES. 
 
FSC, STEEL 
---------- 
 
6. (C) ITALY SEEKS TO AVOID A FLARE-UP OF U.S.-EU TENSION IN 
BOTH THESE AREAS, ESPECIALLY SINCE THE ALREADY CONTENTIOUS 
BIOTECH ISSUE IS LIKELY TO REMAIN UNRESOLVED WELL INTO ITS 
 
ACTION STR-00 
 
INFO  LOG-00   NP-00    AID-00   CEA-01   CIAE-00  COME-00  CTME-00 
      DODE-00  SRPP-00  DS-00    EAP-00   EB-00    EUR-00   EXIM-01 
      E-00     VC-00    FRB-00   H-01     TEDE-00  INR-00   IO-00 
      ITC-01   JUSE-00  LAB-01   LOC-01   L-00     VCE-00   MED-07 
      AC-01    DCP-01   NSAE-00  NSCE-00  OES-00   OIC-02   OMB-01 
      DHS-00   OPIC-01  PA-00    PM-00    PRS-00   ACE-00   P-00 
      SCT-00   SP-00    SSO-00   SS-00    TRSE-00  T-00     USIE-00 
      PMB-00   DSCC-00  PRM-00   DRL-01   G-00     NFAT-00  SAS-00 
        /020W 

O 071818Z FEB 03 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC IMMEDIATE 8150 
INFO EU MEMBER STATES COLLECTIVE 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
USMISSION GENEVA 
USEU BRUSSELS 3102 
 
C O N F I D E N T I A L SECTION 02 OF 03 ROME 000522 
 
SIPDIS 
 
STATE PASS USTR 
GENEVA FOR USTR 
 
E.O. 12958: DECL: 02/07/2008 
TAGS: ETRD, EUN, IT, KIPR, PREL 

SUBJECT: SCENESETTER FOR USTR ZOELLICK'S FEBRUARY 11 
MEETING WITH ITALIAN VICE MINISTER FOR FOREIGN TRADE ADOLFO 
URSO 
 
UPCOMING EU PRESIDENCY.  URSO AND HIS STAFF HAVE TENDED TO 
DOWNPLAY BOTH FSC AND STEEL, REFLECTING THE GOI,S RELATIVE 
LACK OF INTEREST HISTORICALLY. WITH ITALY'S EU PRESIDENCY, 
HOWEVER, URSO MIGHT BE RECEPTIVE TOWARDS CARRYING A POSITIVE 
MESSAGE TO THE EU FROM US IN BOTH THESE AREAS IN ORDER TO 
LESSEN TENSION. AMONG THE POSITIVE NEWS WE HAVE SHARED WITH 
URSO,S STAFF: THE USG COMMITMENT TO WORK WITH CONGRESS ON 
RESOLVING FSC; PROGRESS IN RESTRUCTURING THE U.S. STEEL 
INDUSTRY; AND THE STRENGTHENING GLOBAL STEEL MARKET. 
 
BIOTECH 
------- 
 
7. (C) URSO HAS TOLD US ON MANY OCCASIONS THAT HE WOULD LIKE 
TO SEE AN END TO THE EU MORATORIUM ON NEW BIOTECH APPROVALS, 
EVEN THOUGH  AGRICULTURE MINISTER ALEMANNO CONTINUES HIS 
STRONGLY ANTI-BIOTECH STANCE.  THE GOI HOPES THIS ISSUE WILL 
NOT BURST INTO OPEN CONFRONTATION DURING ITS EU PRESIDENCY. 
UNFORTUNATELY, HOWEVER, INTERNAL GOI DIVISION ON BIOTECH 
REMAINS UNRESOLVED (PM BERLUSCONI RELIES ON THE POLITICAL 
SUPPORT OF ALIANZA NAZIONALE PARTY LEADERS LIKE ALEMANNO ) 
SEE REF B). USTR ZOELLICK'S MEETING WILL BE AN OPPORTUNITY TO 
REITERATE HOW SERIOUSLY WE TAKE AGRICULTURAL BIOTECH WITHIN 
OUR BILATERAL AGENDA, AND THAT -- LIKE IT OR NOT -- ITALY 
WILL BE FORCED TO EXERCISE LEADERSHIP ON THE ISSUE DURING ITS 
EU PRESIDENCY.  WE SHOULD ALSO REITERATE OUR CONTINUED STRONG 
CONCERN ABOUT THE &AMATO DECREE8, WHICH BANNED FOUR 
EU-APPROVED CORN VARIETIES FOR PLANTING IN ITALY ON 
PRECAUTIONARY GROUNDS, AND WARN STRONGLY AGAINST ANY SIMILAR 
MEASURES THAT THE GOI MIGHT TAKE ON THE IMPORT OF SEEDS FOR 
PLANTING (AN IDEA WHICH ALEMANNO MAY BE CONSIDERING). 
 
8. (C) DESPITE URSO,S PERSONAL PRO-BIOTECH STANCE, HE ISSUED 
A PUBLIC STATEMENT JANUARY 10 CRITICIZING THE U.S. THREAT TO 
INITIATE A WTO CASE AS EXCESSIVE AND COUNTERPRODUCTIVE, AND 
PRAISING THE EU'S EFFORTS TO INSURE THAT CONSUMERS ARE INFORMED 
ABOUT FOOD CONTAINING GMOS.  URSO FURTHER CRITICIZED AS MISTAKEN ANY LINKING OF THE EU,S POSITION WITH THE DECISION BY SOME AFRICAN 
COUNTRIES TO REFUSE BIOTECH FOOD AID.  IN A FOLLOW-UP PUBLIC 
STATEMENT FEBRUARY 5, URSO FAVORABLY NOTED REPORTS THAT THE 
U.S. WOULD POSTPONE INITIATION OF A WTO CASE AS POTENTIALLY 
A POSITIVE SIGN, NOTING THAT A U.S. POSITION THAT DID NOT 
OPENLY CONFRONT THE EU, BUT RATHER SOUGHT RESOLUTION THROUGH 
DIALOGUE, IS THE NECESSARY WAY OF SUCCEEDING IN REACHING, 
AS SOON AS POSSIBLE, AN AGREEMENT ON GMOS. 
 
INTELLECTUAL PROPERTY RIGHTS 
---------------------------- 
 
9. COPYRIGHT:  SINCE THE 2000 COPYRIGHT LAW WAS ENACTED, WE 
HAVE SEEN A REAL IMPROVEMENT IN LAW ENFORCEMENT EFFORTS TO 
FIGHT COPYRIGHT PIRACY.  THE JUDICIARY, HOWEVER, HAS SHOWN A 
RELUCTANCE TO PROSECUTE AND SENTENCE LAWBREAKERS.  SIAE (THE 
ITALIAN COPYRIGHT COLLECTION ENTITY) CONTINUES TO FOCUS ITS 
EFFORTS ON COLLECTING HIGHER "STICKER" FEES ON LEGITIMATE 
COPYRIGHTED GOODS, WHILE LEAVING ANTI-PIRACY EFFORTS TO 
INDUSTRY AND LAW ENFORCEMENT AGENCIES. 
 
10. TRADEMARK/PATENT:  THE MINISTER OF PRODUCTIVE ACTIVITIES, 
ANTONIO MARZANO, WHOSE MANDATE ALSO INCLUDES URSO'S MINISTRY 
OF FOREIGN TRADE AND THE ITALIAN PATENT AND TRADEMARK OFFICE 
(IPTO), HAS BEGUN SERIOUS EFFORTS TO REFORM THE IPTO. 
COMMERCE U/S JAMES ROGAN AND THE U.S. PATENT AND TRADEMARK 
OFFICE (USPTO) HAVE PROVIDED EXTENSIVE GUIDANCE AND TECHNICAL 
ASSISTANCE TO THIS ONGOING EFFORT.  USTR ZOELLICK MIGHT TAKE 
THE OPPORTUNITY TO APPLAUD THE IPTO REFORM EFFORTS AND 
ITALIAN LAW ENFORCEMENT AGENCY EFFORTS TO FIGHT PIRACY.  AT 
THE SAME TIME, WE SHOULD NOTE THAT WE REMAIN LESS THAN 
SATISFIED BY SIAE'S INADEQUATE ANTI-PIRACY EFFORTS AND BY THE 
ANEMIC RESPONSE BY THE ITALIAN JUDICIARY. 
 
BIOGRAPHICAL NOTE 
----------------- 
 
11. (C) APART FROM HIS ROLE AS THE LEAD GOI OFFICIAL ON 
TRADE, URSO IS A RISING STAR IN ITALIAN POLITICS.  HE IS A 
MEMBER OF ALIANZA NAZIONALE (AN), THE SECOND PARTY WITHIN PM 
BERLUSCONI,S RULING COALITION.  URSO IS A CLOSE POLITICAL 
ALLY, PROTEGE AND ADVISOR OF DEPUTY PRIME MINISTER GIANFRANCO 
FINI, AND ALSO HAS LONG-STANDING TIES TO FELLOW AN MEMBER 
AGRICULTURE MINISTER GIOVANNI ALEMANNO (NOTWITHSTANDING THEIR 
CONTRASTING VIEWS ON AGRICULTURAL BIOTECH).  HE IS A FRIEND 
OF CONGRESSMAN BILL YOUNG, CHAIRMAN OF THE HOUSE 
 
ACTION STR-00 
 
INFO  LOG-00   NP-00    AID-00   CEA-01   CIAE-00  COME-00  CTME-00 
      DODE-00  SRPP-00  DS-00    EAP-00   EB-00    EUR-00   EXIM-01 
      E-00     VC-00    FRB-00   H-01     TEDE-00  INR-00   IO-00 
      ITC-01   JUSE-00  LAB-01   LOC-01   L-00     VCE-00   MED-07 
      AC-01    DCP-01   NSAE-00  NSCE-00  OES-00   OIC-02   OMB-01 
      DHS-00   OPIC-01  PA-00    PM-00    PRS-00   ACE-00   P-00 
      SCT-00   SP-00    SSO-00   SS-00    TRSE-00  T-00     USIE-00 
      PMB-00   DSCC-00  PRM-00   DRL-01   G-00     NFAT-00  SAS-00 

O 071818Z FEB 03 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC IMMEDIATE 8151 
INFO EU MEMBER STATES COLLECTIVE 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
USMISSION GENEVA 
USEU BRUSSELS 3103