US embassy cable - 03ROME2150

CONFIDENTIAL  ROME 02150 
 
SIPDIS 
 
STATE PASS USTR FOR AMB. ZOELLICK, AMB. JOHNSON, NOVELLI 
STATE PASS DEPARTMENT OF AGRICULTURE FOR SECY. VENEMAN, 
PENN, HEGWOOD 
STATE FOR E - U/S LARSON, EB - A/S WAYNE, EUR - PDAS RIES, 
MORFORD, HENNESSEY-NILAND 
WHITE HOUSE FOR NSC/NEC 
GENEVA FOR USTR 
 
E.O. 12958: DECL: 05/15/2013 
TAGS: ETRD, EAGR, TBIO, IT, EUN 
SUBJECT: EU BIOTECH: ITALIAN REACTION TO U.S. ANNOUNCEMENT 
OF WTO BIOTECH CASE 
 
REF: A. STATE 124277 
 
B. STATE 125512 
 
CLASSIFIED BY: ECONOMIC MINISTER COUNSELOR SCOTT KILNER FOR REASONS 1.5 
(B) AND (D) 
 
1. (C) SUMMARY: ITALIAN GOVERNMENT REACTION TO THE MAY 13 USG 
ANNOUNCEMENT REQUESTING WTO CONSULTATIONS ON THE EU,S 
MORATORIUM ON BIOTECH APPROVALS HAS BEEN RESTRAINED. FOREIGN 
TRADE VICE MINISTER URSO SUGGESTED THAT RESOLUTION OF THE 
BIOTECH CASE MIGHT BE POSSIBLE THROUGH LINKAGE WITH OTHER 
DISPUTES, ALTHOUGH HE DID NOT FORESEE PROGRESS DURING THE 
SIXTY DAY CONSULTATIONS PERIOD.  AGRICULTURAL MINISTER 
ALEMANNO, THE MOST OUTSPOKEN GOI OPPONENT TO BIOTECH, SO FAR 
HAS DECLINED TO COMMENT ON THE U.S. ACTION.  THE MINISTRY OF 
ENVIRONMENT IS LIKELY TO DISENGAGE FROM EFFORTS TO IMPLEMENT 
EU DIRECTIVE 01/018 WHILE THE WTO CASE IS PENDING, AND THE 
MINISTER OF HEALTH, THOUGH PERSONALLY PRO-BIOTECH, WILL 
CONTINUE TO DEFER TO ALEMANNO ON THE ISSUE.  ITALIAN PRESS 
REACTION HAS ALSO BEEN RATHER RESERVED. EMBASSY ROME AND 
CONSULATES FLORENCE, MILAN AND NAPLES ARE WORKING TOGETHER TO 
IMPLEMENT A ROBUST PUBLIC DIPLOMACY PROGRAM TO SUPPORT USG 
BIOTECH POLICY IN LIGHT OF THE WTO CASE.  END SUMMARY. 
 
FOREIGN TRADE MINISTRY 
---------------------- 
 
2. (C) ECMIN INITIATED A MAY 14 MEETING WITH FOREIGN TRADE 
VICE MINISTER ADOLFO URSO BY NOTING THAT, AFTER FIVE YEARS, 
U.S. PATIENCE WITH THE CONTINUED EU MORATORIUM ON BIOTECH 
APPROVALS HAD FINALLY RUN OUT. DESPITE REPEATED EU ASSURANCES 
OVER THE YEARS, A SOLUTION STILL DOES NOT APPEAR IMMINENT. 
IN ADDITION TO OUR CONCERNS THAT U.S. EXPORTS ARE BEING 
EXCLUDED ILLEGALLY FROM THE EU MARKET, THE U.S. WORRIES 
INCREASINGLY THAT THE EU MORATORIUM IS STIGMATIZING BIOTECH 
PRODUCTS IN THE DEVELOPING WORLD. THE U.S. DECISION TO 
INITIATE A CASE, IN PART, IS A MEANS TO STEM THE SPREAD OF 
UNWARRANTED CONCERNS ABOUT BIOTECH PRODUCTS TO COUNTRIES THAT 
WOULD BENEFIT FROM THEIR INTRODUCTION.  ECMIN ADDED THAT OUR 
DECISION TO PURSUE THIS CASE DID NOT IN ANY WAY LESSEN OUR 
COMMITMENT TO WORK COOPERATIVELY WITH THE EU ON OTHER FRONTS, 
PARTICULARLY THE DOHA WTO NEGOTIATIONS. 
 
3. (C) URSO, WHO REITERATED HIS PERSONAL PRO-BIOTECH VIEWS, 
SAID THAT THE U.S. DECISION SEEMED TO BE A STEP BACK IN 
U.S.-EU TRADE RELATIONS, GIVEN RECENT POSITIVE STATEMENTS BY 
USTR ZOELLICK AND EU TRADE COMMISSIONER LAMY ON ADVANCING THE 
DOHA AGENDA.  HE DISMISSED THE POSSIBILITY THAT ANY SOLUTION 
COULD BE FOUND DURING THE INITIAL SIXTY-DAY CONSULTATION 
PERIOD, GIVEN THE COMPLEXITIES INVOLVED IN HAVING ALL 15 
MEMBER STATES TAKE POSITIVE ACTION.  YET URSO THEN PROCEEDED 
TO ADVANCE HIS OWN COMPLICATED IDEA -- THAT THE RANGE OF 
U.S.-EU TRADE DISPUTES (STEEL, FSC, BIOTECH, GEOGRAPHICAL 
INDICATORS, AND EVEN OUR COMPETING WTO AGRICULTURAL 
PROPOSALS) SHOULD BE LINKED IN ORDER TO FACILITATE THEIR 
SIMULTANEOUS RESOLUTION.  HE SUGGESTED THAT EACH ISSUE COULD 
BE NEGOTIATED SEPARATELY BUT IN PARALLEL, WITH THE CLEAR 
UNDERSTANDING THAT TRADEOFFS WOULD BE NECESSARY. (COMMENT: 
THIS IS A FAMILIAR THEME WITH GOI TRADE OFFICIALS, WHO HAVE 
FREQUENTLY SUGGESTED THAT EU GIVE ON BIOTECH MIGHT BE 
POSSIBLE IF THE U.S. SOFTENED ITS STAND OPPOSING THE EU,S 
CALL FOR GREATER PROTECTION WITHIN THE WTO OF GEOGRAPHICAL 
INDICATORS FOR FOODSTUFFS.  END COMMENT.) 
 
4. (C) ECMIN RESPONDED TO URSO,S SUGGESTION BY STATING THE 
U.S. POSITION THAT THESE ARE SEPARATE DISPUTES THAT SHOULD BE 
RESOLVED INDIVIDUALLY, EACH ON ITS OWN MERITS.  WE DID NOT 
WANT U.S.-EU BILATERAL DISPUTES TO INTERFERE WITH PROGRESS 
BEING MADE IN THE DOHA ROUND TALKS.  ITALY HAD THE RIGHT TO 
PROPOSE SUCH AN IDEA (URSO SUGGESTED THE JUNE 25 U.S.-EU 
SUMMIT, OR THE MARGINS THEREOF, COULD BE AN APPROPRIATE 
VENUE), BUT RESOLUTION OF THE BIOTECH CASE WOULD NEED TO 
INVOLVE ALL THE RELEVANT PLAYERS (INCLUDING THE COMMISSION, 
THE OTHER EU MEMBER STATES, AND THE WTO CASE CO-COMPLAINANTS 
CANADA, ARGENTINA AND EGYPT).  URSO NEVERTHELESS PERSISTED, 
SAYING HE WOULD DISCUSS THE IDEA OF A "GRAND BARGAIN" WITH 
PRIME MINISTER BERLUSCONI, AND PERHAPS AFTERWARD WITH LAMY 
AND WTO DIRECTOR-GENERAL SUPACHAI. (WE UNDERSTAND BOTH MAY 
VISIT ROME THE WEEK OF MAY 19.) 
 
ADDITIONAL GOI REACTION 
----------------------- 
 
5. (SBU) ECONOFF PROVIDED REFTEL MATERIAL ON THE WTO CASE TO 
CLAUDIO SPINEDI, SENIOR ADVISOR TO MFA DIRECTOR GENERAL FOR 
ECONOMIC COOPERATION GIANDOMENICO MAGLIANO.  SPINEDI TOLD US 
THAT THE GOI SHARES OUR CONCERN THAT THE ADVENT OF A WTO CASE 
NOT HAVE A NEGATIVE EFFECT ON THE DOHA NEGOTIATIONS.  HE 
FURTHER NOTED THAT THE GOI HAS REFRAINED FROM PRESSURING 
DEVELOPING COUNTRIES ON BIOTECH ISSUES (UNTIL RECENTLY 
SPINEDI WAS AN OFFICE DIRECTOR IN THE MFA, DEVELOPMENT 
ASSISTANCE BUREAU). WE ALSO LEFT RETEL MATERIAL WITH MASSIMO 
GAIANI, OFFICE DIRECTO FOR EU ENLARGEMENT AND THIRD COUNTRY 
RELATIONS, EUROPEAN INTEGRATION DIRETORATE. 
 
6. (SBU) RAFFAEL DE LUTIO, DIPLOMATIC AVISOR TO MINISTER OF 
AGRICULTURE ALEMANNO, TOLD AMINCOUNSELOR THAT THERE WAS "NO 
REACTION" AT THEMINISTRY OF AGRICULTURE TO THE U.S. 
ANNOUNCEMENT  RATHER, MINISTER ALEMANNO WAS VERY CONCERNED 
B AND FOCUSED ON THE APRIL 25 STAKEHOLDERS MEETING N 
BRUSSELS THAT DISCUSSED CO-EXISTENCE.  ACCORDIN TO DE LUTIO, 
THE ITALIAN DELEGATION CAME AWAY FROM THAT MEETING 
PESSIMISTIC THAT BIOTECH CROPS COULD BE GROWN WITHOUT 
"CONTAMINATING HIGH QUALITY PRODUCTS". 
 
7. (C) MINISTRY OF ENVIRONMENT DIRECTOR GENERAL CORRADO CLINI 
TOLD ESTOFF THAT THE WTO CASE WAS NOW A EUROPEAN COMMISSION 
PROBLEM.  HE DOUBTED THAT THE ITALIAN PRESIDENCY, ESPECIALLY 
GIVEN THE BERLUSCONI-PRODI STRAINS, WOULD BE INCLINED TO PLAY 
AN ACTIVE ROLE.  HE FORESAW THAT THE GOVERNMENT,S INTERNAL 
PAPER ON THE IMPLEMENTATION OF EU DIRECTIVE 01/018 IN ITALY 
WOULD NOW STALL, AND THAT THE ENVIRONMENT MINISTRY,S PLAN TO 
MANAGE CONCILIATION OF THE COMMISSION AND EUROPEAN PARLIAMENT 
VERSIONS OF TRACEABILITY AND LABELING WOULD BE PUT ASIDE. HE 
MENTIONED A MAY 28 MEETING BETWEEN MINISTER OF ENVIRONMENT 
MATTEOLI AND COMMISSIONER WALLSTROM TO DISCUSS ITALIAN 
PRESIDENCY GOALS, AND ENCOURAGED CONTACT BEFOREHAND BETWEEN 
U/S LARSON AND PM DIPLOMATIC ADVISOR GIOVANNI CASTELLANETA IF 
THE USG WANTED ANY ITALIAN LEADERSHIP TO COME FROM THE MAY 28 
MEETING.  THINKING MORE EXPANSIVELY, CLINI SUGGESTED PM 
BERLUSCONI MIGHT BEST BE POSITIVELY ENERGIZED ON BIOTECH 
THROUGH COMMUNICATION FROM UK PM BLAIR. 
 
8. (SBU) VITTORIO SILANO, HEAD OF INTERNATIONAL AFFAIRS AT 
THE MINISTRY OF HEALTH, TOLD US THAT WHILE MINISTER OF HEALTH 
SIRCHIA WAS FULLY SUPPORTIVE OF BIOTECHNOLOGY IN SCIENTIFIC 
TERMS, THE MINISTER HAD DISENGAGED HIMSELF FROM THE DOMESTIC 
POLITICAL DEBATE BECAUSE OF MINAG  ALEMANNO,S STRONG 
"LEADERSHIP" ON THE ISSUE.  SILANO SAID HE WOULD IMMEDIATELY 
BRING THE BACKGROUND PAPERS SUPPORTING THE U.S. DECISION TO 
THE MINISTER, BUT LEFT LITTLE HOPE THAT THE MINISTER MIGHT 
ENGAGE. 

PRESS REACTION AND PUBLIC DIPLOMACY OUTREACH 
-------------------------------------------- 
 
9. (U) INITIAL PRESS REACTION HAS BEEN SOMEWHAT RESERVED. 
MOST PRESS ACCOUNTS OF THE U.S. ANNOUNCEMENT STUCK TO THE 
ARGUMENTS PUT FORWARD BY THE USG, ALONG WITH SOME OF THE 
WIDELY-REPORTED EU REACTION BUT ALMOST NO GOI REACTION. 
ROME'S LEFT-LEANING DAILY LA REPUBBLICA HAD A TWO PAGE 
SPREAD, INCLUDING SOME COMMENTARY THAT ATTEMPTED TO LINK THE 
DISPUTE WITH SEEMINGLY UNRELATED ISSUES (U.S. REFUSAL TO JOIN 
THE INTERNATIONAL CRIMINAL COURT, EUROPEAN OPPOSITION TO THE 
DEATH PENALTY, ECHELON/PRIVACY, U.S. BOYCOTT OF FRENCH 
PRODUCTS RELATED TO IRAQ). LIKE OTHER PRESS REPORTS, ITS 
COVERAGE DID NOT INCLUDE ANY GOI REACTION -- MOREOVER, IT HAD 
NO COMMENTS FROM NGOS THAT HAVE IN THE PAST EXPRESSED VOCAL 
OPPOSITION TO BIOTECH FOOD. 
 
10. (U) PA ROME IS WORKING CLOSELY WITH RELEVANT EMBASSY 
OFFICES (ECON, FAS, SCIENCE) AND THE CONSULATES IN NAPLES, 
MILAN, AND FLORENCE TO DEVELOP A ROBUST PUBLIC DIPLOMACY 
PROGRAM TO SUPPORT USG BIOTECH POLICY IN THE LIGHT OF THE WTO 
CASE. WE HAVE TRANSLATED AND SENT THE USDA PRESS RELEASE ON 
THE WTO CASE TO ITALIAN MEDIA, AND HAVE PLACED IT ON THE 
EMBASSY WEBSITE ALONG WITH OTHER INFORMATION SUPPORTING USG 
BIOTECH POLICY. ON MAY 27-30 WE WILL PARTICIPATE WITH THREE 
U.S. SPEAKERS IN A MAJOR BIOTECHNOLOGY CONFERENCE ("FROM THE 
GREEN REVOLUTION TO THE GENE REVOLUTION") IN BOLOGNA, DURING 
WHICH WE WILL DISSEMINATE INFORMATION TO SUPPORT THE U.S. 
POSITION IN THE WTO CASE. WE ARE ALSO FUNDING A U.S. SPEAKER 
TO PARTICIPATE IN A JUNE 30 CONFERENCE IN MILAN ON "THE GREAT 
PROMISE OF BIOTECHNOLOGY." THE GOAL OF THIS CONFERENCE, 
SPONSORED BY THE AMERICAN CHAMBER OF COMMERCE AND CONGEN 
MILAN, IS TO PROVIDE A FORUM FOR ITALIAN BUSINESS AND 
ACADEMIC REPRESENTATIVES TO ENCOURAGE THE ITALIAN GOVERNMENT 
TO TAKE A LESS RESTRICTIVE STANCE TOWARD THE DEVELOPMENT OF 
AGRICULTURAL BIOTECHNOLOGY. WE WILL USE THE FORUM TO PROMOTE 
THE U.S. POSITION IN THE WTO CASE. IN ADDITION TO THESE 
PROGRAMS, WE ARE SENDING U.S. SPEAKERS TO NAPLES, TURIN, AND 
TRIESTE OVER THE NEXT THREE TO FOUR WEEKS IN ORDER TO EXPLAIN 
AND DEFEND U.S. BIOTECH POLICY. 
 
11. (U) IN THE DAYS AND WEEKS AHEAD WE WILL CONTINUE OUR 
PROACTIVE PUBLIC DIPLOMACY OUTREACH TO AUDIENCES THROUGHOUT 
ITALY TO INFORM THE PUBLIC ABOUT U.S. ARGUMENTS AND POLICIES 
FAVORING BIOTECHNOLOGY AND EXPLAINING THE U.S. POSITION IN 
THE WTO CASE. WE WILL MAKE USE OF VARIOUS RESOURCES (SPEAKER 
PROGRAMS, DIGITAL VIDEO CONFERENCES, MEDIA PLACEMENT, 
INFORMATION DISSEMINATION THROUGH OUR WEBSITE, TARGETED 
E-MAIL DISTRIBUTION OF RELEVANT TEXTS, AND INTERNATIONAL AND 
VOLUNTARY VISITOR PROGRAMS) TO PROMOTE USG POLICY AMONG KEY 
POLICYMAKERS AND OPINION LEADERS; AND WE WILL PLACE OP-EDS 
AND INTERVIEWS TO SUPPORT THE U.S. POSITION IN THE WTO CASE. 
SEMBLER 
 

2003ROME02150 - Classification: CONFIDENTIAL