This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 03 BRASILIA 000271 
 
SIPDIS 
 
STATE FOR EB/DMALAC, OES/HLEE AND WHA/BSC 
STATE PASS EPA FOR JANDERSEN 
STATE PASS FOOD AND DRUG ADMINISTRATION FOR RLAKE 
STATE PASS USTR FOR SCRONIN 
USDA FOR U/S JB PENN 
USDA FAS FOR ADMINISTRATOR ETERPSTRA 
USDA APHIS FOR ADMINISTRATOR BACORD AND BRS/JTURNER 
USDA ARS FOR ACTING ADMINISTRATOR EKNIPLING 
USDA FAS FOR OA/BSIMMONS 
USDOC FOR 4322/ITA/MAC/WH/OLAC/WBASTIAN/TSHIELDS 
USAID FOR J/LEWIS 
 
E.O. 12958: N/A 
TAGS: EAGR ECON ETRD TBIO PGOV SENV BR IPR
SUBJECT: STATUS UPDATE ON BRAZIL'S BIOTECHNOLOGY REGULATIONS 
 
Refs: A) STATE 16321,  B) 2003 STATE 263456 
 
¶1.  Post provides the following in response to ref B request. 
 
SUMMARY 
------- 
 
¶2.  Biotechnology in Brazil is regulated by the 1995 Biosafety 
Law 8.974 that established a government commission (CTNBio) to 
approve genetically modified organisms (GMOs).  While the 1995 
GMO Biosafety Law remains on the books, regulation of the 
biotechnology sector in Brazil has remained essentially frozen 
because of a 1998 court case that is still pending in a federal 
court in Brasilia filed by environmental NGOs against the use 
of Monsanto's Roundup Ready soybean variety.  This complicated 
case addresses not only the requirement to conduct 
environmental impact studies on GMO products, but also the 
constitutional authority of CTNBio to approve biotech products. 
 
¶3.  In the absence of a definitive court ruling in that case or 
the passage of the new Biosafety Law, President Lula after 
taking office on January 1, 2003 issued two Presidential 
Decrees (both later adopted into law by Congress) that 
respectively legalized the 2002-03 and 2003-04 biotech soybean 
crops.  On October 31, 2003, President Lula sent to Congress a 
draft of the long-awaited Biosecurity Law that will provide a 
long-term regulatory regime for the biotech sector.  The text 
of the bill from the Presidency envisions a complicated 
mechanism for approval of biotech products by a national 
biosafety council attached to the Presidency that would 
consider political and economic, as well as scientific factors. 
On February 5, 2004, the bill was approved with certain 
revisions by the Chamber of Deputies and proceeded to the 
Senate where it is expected to be debated for several weeks. 
Assessments of the bill as passed vary considerably.  Post 
provides the following information in the interim and will 
continue to follow and report on the progress of biotech 
legislation in Brazil.  End summary. 
 
Relevant Laws and Regulation 
-------------------------- 
 
¶4.  Law 8.974 of 1995 - GMO Biosafety Law - Determines the 
standards for using genetic engineering techniques and the 
release of genetically-modified organisms into the 
environment; 
 
Provisional Measure 2191-9 of 2001 - Modifies and creates 
provisions to Law 8.974/95; 
 
Decree 1.752 of 1995 - Regulates Law 8.974/95; 
 
Law 10.165 of 2000 - Classifies all GMO activities as 
potentially harmful to the environment, for taxing purposes; 
 
CONAMA Resolution 305 of 2002 - Provides for Licensing and 
Environmental Impact Study and Report (EIA/RIMA) to GMO 
enterprises; 
 
Law 7.802 of 1989 - Pesticide Law - Determines registration 
of biocide products with federal agencies. Given this 
requirement, any biocide GMOs, such as the BT Corn, shall be 
registered as pesticides; 
 
Decree 4.680 of 2003 - Regulates Labeling of GMO Food and Food 
Ingredients. 
 
Specific Rules for Genetically Modified Soybean 
--------------------------------------------- -- 
 
¶5.  Law 10.688 of June 13, 2003 (Provisional Measure 113) - 
Determines the standards for marketing the soybean produced 
in the 2003 harvest and creates labeling requirements; 
Law 10.814 of December 15, 2003 (Provisional Measure 131) - 
Determines the standards for planting and marketing 
genetically modified soybean produced in the 2004 harvest. 
Makes GM soybean planting and marketing subject to the 
signature, by the producer, of a TCRAC document (statement 
of commitment, responsibility and conduct); 
 
Decree 4.846 of September 25, 2003 - Regulates Law 10.814 
concerning the TCRAC document; 
 
Law 10.688 (MP 113) of 2003, authorizing the marketing of 
soybean produced in the 2003 harvest, clearly containing 
transgenic material, and Law 10.814 (MP 131) of 2003, 
authorizing producers that had withheld grain from the 
previous harvest to grow transgenic soybean in 2004 as long 
as a Statement of Commitment is signed, are of exceptional 
and non-final character concerning the authorization of GMO 
commercial production in the country. According to Law 
10.814 of 2003, soybean planting for 2005 shall comply with 
the legislation in force at that time.  By converting MP 131 
into Law 10.814 of 2003, a provision was created authorizing 
registration of GM seeds in the National Register of 
Cultivars of the Ministry of Agriculture (MAPA). Another 
provision gave amnesty to soybean producers that had failed 
to comply with the Biosafety Law in the previous harvests. 
 
Bill 2401/2003 
-------------- 
¶6.  Designed to replace Law 8.974 of 1995 and permanently 
regulate GMO activity in the country, including the 
competency of several government agencies, the President 
forwarded bill 2401/2003 to the Congress in October.  Under 
this bill, CTNBio is preserved as a joint committee to 
evaluate GMO-related issues. However, its technical opinion 
will be binding only when negative. In case of a positive 
opinion, voting is analyzed (or reviewed) by registration 
and inspection agencies from MAPA, MS and MMA, within the 
scope of their competencies. CTNBio would have 26 members, 
of which 10 scientists and 16 Government and civil society 
representatives, a restructuring that gives greater weight 
to non-scientists. 
 
¶7.  The bill creates the National Biosafety Council (CNBS), 
linked to the Presidency of the Republic, with the 
responsibility of setting the principles and guidelines for 
implementing biotech policies as well as making the final 
decision on approvals of authorization requests concerning 
GMOs, including marketing and research.  This bill already 
has 278 proposed amendments and will undergo significant 
modifications, especially concerning the competencies and 
composition of CTNBio and CNBS.  Congress passed the bill 
with modifications on February 5, 2004, and the bill 
proceeded to the Senate for further debate. 
 
Monitoring and Enforcement under the 1995 BioSafety Law 
--------------------------------------------- ---------- 
 
¶8.  The regulatory process in place for approving products 
of agricultural biotechnology for import or sale is laid out 
in the 1995 Biosafety Law (Law 8974 of January 1995) and the 
follow-on Presidential Decrees 1752 of 1995 and 2191-9 of 
¶2001.  Together, these created a regulatory framework and 
established CTNBio ("National Technical Commission for 
Biosafety"), granting it wide authority to evaluate, 
approve, and regulate GMOs based on scientific criteria for 
consumer and environmental safety.  CTNBio is attached to 
the Ministry of Science and Technology.  There is no blanket 
legal prohibition on the use, importation or sale of GMOs in 
Brazil, but no approvals are currently being issued due to 
the pending court case, with the exception of animal feed 
products. 
¶9.  Under the 1995 law, those wishing to import or sell 
biotech products must receive approval from CTNBio and 
authorization to market from one of three regulatory 
agencies under the Ministry of Health, Agriculture or 
Environment depending on the nature of the product. 
Monsanto's Roundup Ready Soy was the first biotech product 
to receive CTNBio approval in 1998, and the subsequent court 
case and injunction effectively halted further biotech 
projects in Brazil. Thus, monitoring and enforcement has 
never been exercised, as the mandate of the competent 
authorities (CTNBio) has not been secured.  In the interim, 
only a few Embrapa biotech research projects have been 
approved through the Ministry of Environment. The Ministry 
of Agriculture has granted limited approval for biotech 
products for use as animal feed, such as corn from Argentina 
for poultry producers in the northeast of Brazil.  However, 
entry of these products has always been obtained through 
court injunction. 
 
¶10.  No testing system for biotech content of shipments of 
agricultural products existed under the 1995 law.  The GoB 
is not seriously contemplating a traceability system at this 
time. 
 
Labeling requirements 
--------------------- 
 
¶11.  Executive Order Number 4,680 applies to all biotech 
products to be marketed in Brazil and establishes, as per 
article 2, a one-percent limit tolerance level for genetically 
modified organisms in bulk products, foods and by-products for 
human or animal consumption.  It also allows the CTNBio the 
prerogative to change the percentage referred in article 2 on a 
case-by-case basis.  The order states that the lack of 
compliance will entail the penalties foreseen in the Code of 
Consumer Defense and other applicable rules. 
 
¶12.  For packaged products or those sold in bulk or in natura 
(raw), the following wording must appear on the front of the 
label in conjunction with the approved GMO logo (a large black 
"T" inside of a yellow triangle):  "(name of product) 
transgenic", containing (name of the ingredient or ingredients 
transgenic (s)"or "product produced with (name of product) 
transgenic".  The order also requires that the consumer be 
informed of the specie of the donor gene in the place reserved 
for the identification of the ingredients.  All of the label 
biotech information on the label must also appear on the 
invoice so that it can follow the product or ingredient in all 
steps of the productive chain. 
 
¶13.  The food and ingredients produced from animals fed with 
feed containing transgenic ingredients must have labels printed 
on the front panel with the following wording:  "(name of 
animal") fed with feed containing transgenic ingredients" or 
"(name of ingredient) produced from animal fed with feed 
containing transgenic ingredient." 
 
¶14.  Food and food ingredients that do not contain or are not 
produced from genetically modified organisms will have earned 
the right to use the labeling "(name of product or ingredient) 
free of transgenic" once there are similar transgenic products 
on the Brazilian market. 
 
¶15.  There are special provisions for products produced from 
soybeans harvested from the 2003 crop.  The labeling 
requirements go into effect on February 26, 2004. 
 
HRINAK