VZCZCXYZ0021
RR RUEHWEB

DE RUEHSL #0375/01 1310908
ZNR UUUUU ZZH
R 110908Z MAY 06
FM AMEMBASSY BRATISLAVA
TO SECSTATE WASHDC 9821

UNCLAS BRATISLAVA 000375 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAGR ECON ETRD SENV TBIO TSPL
SUBJECT: NEW GMO LAW LOOKS GOOD, SO FAR 
 
¶1. (U) Summary: Slovakia adopted new "co-existence" 
legislation for genetically modified organisms in April 2004, 
and is now in the process of drawing up regulations to 
enforce the new law.  The law will enable the Ministry of 
Agriculture to establish conditions for growing genetically 
modified crops, which would permit commercial planting in the 
near future.  Monsanto, which is currently testing its GM 
corn in Slovak test fields, hopes to be able to use this law 
as a springboard for commercial production of genetically 
modified crops in 2007.  Pioneer Hybrid, which is not yet in 
the test field stage, hopes to enter the local GM market 
shortly thereafter.  The new law is vaguely worded at many 
points, however, which leaves open the possibility that GOS 
regulators may issue guidelines that signifcantly restrict GM 
production.  In any case, the potential market for 
genetically modified agricultural production in Slovakia 
appears to be limited in the near future. 
 
The Law 
------- 
 
¶2. (U) On March 16, the National Assembly passed, by a margin 
of 86-18 with 23 abstentions, new co-existence legislation 
for genetically modified organisms.  The legislation was 
published in April, and officially takes effect on June 1. 
The new law updates the existing GM law of 2002, which 
established standards for assessing the safety of new GMO 
products but did not set up a regulatory framework for 
planting.  Without regulatory guidance under the 2002 law, 
planting GMOs had not been expressly illegal but was 
non-viable in practice.  The new law authorizes the 
Ministries of Agriculture (and, to a much lesser extent, 
Environment) to establish specific conditions for growing 
genetically modified plants, including isolation distances, 
liquidiation, cleaning standards, separate storage 
facilities, and other technical standards, using European 
Union recommendations as a benchmark.  On some of these 
issues, the legislation clearly outlines technical standards, 
but in most cases there is no binding guidance, leaving the 
Ministry of Agriculture considerable leeway to set up 
regulatory procedures.  Most major regulations are not 
expected to be finalized until after the June 17 elections, 
which makes it even more difficult to analyze the impact of 
the new law.  (Note: The ruling coalition parties and Smer, 
the leading opposing party, all supported the legislation. 
GMOs are not a campaign issue.) 
 
Reactions 
--------- 
 
¶3. (SBU) GM-producing seed and chemical companies support the 
new law in general, but express reservations about the 
implementation process.  Local Monsanto representative Milusa 
Kusendova expressed to Emboff concern about the co-existence 
language, which requires the Minister of Agriculture to 
inform the public of all sites where genetically modified 
crops are grown.  Ms. Kusendova believes this may be 
interpreted in such a way that the exact locations of 
agricultural fields will be publicly available, which may 
cause a security concern for farmers and the company.  This 
year Monsanto is planting its first test fields for its 
MON810 version of BT corn -- three total, 10 hectares apiece, 
two near the Hungarian border in Komarno, and one in Eastern 
Slovakia.  Ms. Kusendova has concerns about the Ministry of 
Agriculture regulators in general and would be more 
comfortable if Ministry of Environment Director of Biosafety 
Igor Ferencik had been given a greater role in the process. 
 
¶4. (SBU) Both Monsanto and Pioneer Hybrid also were concerned 
about the set aside distances that may be proposed by the 
Ministry of Agriculture.  They point to the Czech Republic's 
GM corn proposals -- 70 meter set asides from conventional 
crops, and 200 meter from organic -- as a cumbersome but 
reasonable compromise position.  They feel, however, that 
there is considerable risk that Slovakia will adopt rules 
comparable to Hungary's draft position of 400 meter set 
asides from all crops.  Set asides of that length would 
effectively make GM corn production impossible on most Slovak 
fields.  Each company rep perceives that influence from 
Slovakia's anti-GMO neighbors Austria and Hungary is quite 
strong.  Jozef Frco, the Pioneer representative, pointed out 
to Emboff that the Ministers of Agriculture and Environment 
are both members of the Hungarian party, SMK, and listen 
carefully to the opinions of their cousins to the south. 
 
¶5. (U) Public reaction from GM opponents has been relatively 
mute.  Greenpeace, with a rapidly growing membership in 
Slovakia, had been actively lobbying the government to 
disallow commercial planting, but was not especially visible 
in protest of the new law.  Apart from its basic 
philosophical objection to the new law, Greenpeace has 
criticized legislators for giving the Ministry of Agriculture 
too much leeway to establish set-aside distances without 
reasonable guidance and oversight -- a mirror image of the 
complaint made by Monsanto and Pioneer. 
 
¶6. (SBU) Farmers and processors remain either unconvinced or 
uncommitted.  Genetically modified crops have not yet been 
approved for human consumption in Slovakia, and, even if 
approved, food processors will remain wary of purchasing GM 
crops.  Amylum Boleraz, Slovakia's largest processor of corn 
with over 220,000 tons of annual production, stated in April 
that it will not purchase any GMO-corn because it does not 
want to threaten consumer confidence in its sugar, children's 
nutritional, and pharmaceutical products.  Farmers appear to 
be somewhat more open.  On May 4, Ambassador Vallee visited 
several prominent farmers and asked them their views on 
genetically modified organisms.  The general consensus was 
that they would be open to planting GM crops if they would 
indeed lead to lower pesticide usage and higher profit 
margins, and they believed that in the future they would be 
growing GM crops.  At the same time, they seemed more 
resigned to the concept than enthused about it, and in no 
hurry to make the switch anytime soon. 
 
 
Potential GM Market 
------------------ 
 
¶7. (U) Farmers have several reasons for withholding judgment, 
among them an uncertainty about the potential market for 
their product.  Since food processors will not be accepting 
GM crops anytime soon, the emerging biofuels industry appears 
to be the most logical place for much of Slovakia's 700,000 
hectares of grain production.  This is especially true since 
oil refiners are now required to include a 5% biofuel 
component in their fuels.  In response, two major biofuel 
plants are in construction, including a plant in the western 
town of Leopoldov, owned by the Slovnaft subsidiary Enviral. 
When it opens in 2007, the plant will become the largest 
consumer of grains in Slovakia, processing the equivalent of 
35% of Slovakia's corn crop.  The company has expressed that 
GM crops are appropriate for biofuel production, and few 
observers expect any regulatory roadblocks to producing GM 
crops for biofuels.  Slovnaft has already committed itself to 
securing 60% of production for its Leopoldov plant from 
Hungary, however, with a significant percentage also coming 
from the Czech Republic, leaving limited space open for local 
production. 
 
¶8. (U) The market appears small from the GM distributor's 
perspective as well.  Mr. Frco expressed doubt that food 
processors will be accepting GM anytime soon.  The majority 
of Slovakia's 240,000 hectares of corn production is used for 
human consumption, whereas the majority of Slovakia's overall 
grain production is used for animal feed, biofuels, and other 
uses.  This suggests that BT corn is not a particularly good 
fit for Slovakia's market needs at the moment.  Seen from the 
company's perspective, Slovakia is more important as a 
potentially positive model for GMO regulation in Europe than 
as a market for GMOs. 
 
VALLEE