VZCZCXYZ0000
OO RUEHWEB

DE RUEHQT #2698/01 3112224
ZNR UUUUU ZZH
O 072224Z NOV 06
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5612
INFO RUEHBO/AMEMBASSY BOGOTA 6139
RUEHCV/AMEMBASSY CARACAS 2141
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