Cablegate: Draft Ecuadorian Health Law Requires Approval and Labeling

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TO RUEHC/SECSTATE WASHDC IMMEDIATE 5612
INFO RUEHBO/AMEMBASSY BOGOTA 6139
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RUEHLP/AMEMBASSY LA PAZ NOV LIMA 1122
RUEHGL/AMCONSUL GUAYAQUIL 1384

UNCLAS QUITO 002698

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR WHA/AND AND EB/TPP/ABT
USTR FOR BENNETT HARMAN
USDA/FAS/OA/BIOTECH

E.O. 12958: N/A
TAGS: ETRD EAGR PGOV EC
SUBJECT: Draft Ecuadorian Health Law Requires Approval and Labeling
of Biotech Food

1. (SBU) Summary. The Ecuadorian Congress approved a new Health
Code that requires that competent authorities approve foods
containing genetically modified organisms as innocuous and safe.
Similar provisions in an April law, since set aside as
unenforceable, led to a temporary freeze in imported corn and
soybean meal/oil. The Ecuadorian animal feed and oil industries,
which rely heavily on imported corn and soybean products, including
those from the United States, will lobby the Palacio administration
to partially veto the GMO provisions of the legislation. Embassy
plans to urge administration officials to work with industry and
Congress to develop alternative provisions that will not disrupt
trade, and requests Washington guidance. End summary.

2. (U) Action request: please see para. 8.

3. (U) On October 31, the Ecuadorian Congress approved a new Health
Code. While the new Health Code includes a number of important and
positive provisions to update Ecuador's antiquated health code, it
also includes provisions requiring the approval and labeling of food
that includes genetically modified organisms. The code also
requires that donated food which includes GMOs be approved as safe.
(See para. 9 for draft text of the relevant articles.)

4. (U) Representatives of major importers and processors of
agricultural products, notably the animal feed and vegetable oil
industries, met with Embassy officials on November 1 to express
their concern that the law, as drafted, would halt the importation
of corn and soybean products from the U.S. (In 2005, the U.S.
supplied 267,000 MT of corn, 64% of Ecuador's corn imports. In
2005, the U.S. supplied 31,000 MT of soybean meal, 8% of Ecuador's
2005 imports, although in prior years the U.S. provided a greater
share of Ecuador's soybean meal imports. The U.S. has also provided
soybean meal and oil as part of our food assistance program.)

5. (U) The industry representatives cited problems with the Food
and Nutrition Security Law that was approved in April with similar
provisions, even though Ecuador did not and still does not have a
regulatory framework to certify whether GMO products are safe, nor
institutions that have the technical capacity to do so. At that
time, the Ministry of Agriculture refused to issue import licenses,
and the food processing industry was unable to import corn or soy
products. The GMO provisions of the Food Safety Law were eventually
suspended by the Attorney General on a technical basis since the law
incorrectly identified the names of the regulatory authorities, and
the Ministry of Agriculture again issued import licenses. (However,
the GMO provisions of the Health Code do not identify any regulatory
agencies by name, so the new provisions could not be suspended for
the same reason.)

6. (SBU) The industry representatives plan to lobby the Palacio
administration to partially veto the GMO provisions, but had not
agreed on alternative language that they would like the
administration to use. Embassy plans to reinforce industry lobbying
by meeting with senior GOE officials to express concern that, based
on prior experience with the Food and Nutrition Security Law, the
GMO provisions of the Health Code could disrupt trade, and encourage
the GOE to work with industry and congress to develop alternative
language that would not disrupt trade.

7. (U) We understand from congressional experts that it will take
congressional staff approximately 15 days to compile the changes
made to the draft law and therefore will submit it to the President
on approximately November 14. After receiving the legislation, the
President has 10 calendar days (to approximately November 24, or two
days before the second round presidential election) to approve,
totally veto, or partially veto the legislation. Neither of the two
presidential finalists has commented on the code, which has slipped
into law without much political debate or media coverage.

8. (SBU) Action request: Embassy Quito would welcome Washington
guidance on a USG response to the GMO provisions in the draft Health
Code. However, given the short time frame before the draft
legislation will be passed to the Palacio administration, we are
seeking appointments with GOE officials, and pending guidance from
Washington, will make the general points about not disrupting trade
as outlined in paragraph 6.

9. (U) The articles pertaining to GMOs in the draft Health Code are
as follows, although final wording and numbering may change as
congressional staff compiles the changes made to the Health Code
(informal Embassy translation):

Art. 149. The development, treatment, elaboration, production,

application, manipulation, use, storage, transportation,
distribution, importation, commercialization, and retail of food for
human consumption that is or contains genetically modified products,
will take place when it is demonstrated before the competent
authority, based on technical and scientifically advanced studies,
the products' innocuousness and safety for consumers and the
environment.

To comply with this purpose, the national sanitary authority must
coordinate with corresponding public and private technical
organisms.

Art. 150. The donation of foods that contain genetically modified
products, as well as their utilization, use and handling in plans
and programs and plans for food assistance (note: translated as
written in the draft law), will be accepted if through advanced
technical and scientific procedures it is demonstrated their
innocuousness and safety before the national sanitary authority.

To comply with this purpose, the national sanitary authority will
act in conformity with the universal principals in public health
material and that which is established in the second sentence of the
preceding article.

Art. 151. The containers of the products that contain genetically
modified food, be they domestic or imported, must obligatorily
include, in a visible and comprehensible form on their labels, the
indication of this condition, in addition to other requirements with
which they must comply in keeping with applicable legislation.

Art. 152. The national sanitary authority, in coordination with the
competent organism, will establish and implement an integrated
national system to guarantee the innocuousness of foods.

Jewell

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