VZCZCXYZ0005
PP RUEHWEB

DE RUEHHK #0186/01 0290741
ZNR UUUUU ZZH
P 290741Z JAN 08
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC 4018
INFO RUEHRC/USDA FAS WASHDC PRIORITY 1396
RUEHBJ/AMEMBASSY BEIJING PRIORITY 1856
RUEHUL/AMEMBASSY SEOUL PRIORITY 3244
RUEHKO/AMEMBASSY TOKYO PRIORITY 4857
RUEHGZ/AMCONSUL GUANGZHOU PRIORITY 1045
RUEHIN/AIT TAIPEI PRIORITY 4817

UNCLAS HONG KONG 000186 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/CM 
STATE FOR EEB/TPP/ABT/BTT FINN 
USDA FOR FAS/OSTA/MHENNEY/AROBERTS/ARUDE 
USDA FOR FAS/OCRA/ABRANSON 
BEIJING FOR FAS AND ECON 
TOKYO FOR FAS 
SEOUL FOR FAS 
AIT FOR FAS/HALLMAN, ECON/OCONNOR 
 
E.O. 12958:  N/A 
TAGS: EAGR ECON ETRD TBIO KPAO HK
SUBJECT:  FUNDING REQUEST FOR FY2008 BIOTECHNOLOGY OUTREACH AND 
CAPACITY BUILDING IN HONG KONG 
 
Ref: 07 STATE 160639 
 
¶1. This is an action request. See paragraphs 2 and 9. 
 
¶2. Summary and Action Request: Hong Kong is on the brink of 
initiating the formal process for establishing mandatory labeling 
for biotech foods.  This step could seriously undermine sales to 
this 8th-largest market for U.S. value-added agricultural products, 
which amounted to about USD$710 million in 2007.  Consulate General 
Hong Kong requests resources in the amount of $20,000 for outreach 
and capacity building activities, including work with educators and 
institutions as outlined in para 9.  Mandatory biotech labeling is a 
high-priority issue for FAS posts throughout the region and 
coordination with other posts is welcome.  End summary and action 
request. 
 
¶3. If Hong Kong initiates mandatory labeling for biotech foods, U.S. 
products will be severely impacted because of the cost of labeling, 
if exporters choose to continue to sell to this market.  Retailers 
fear negative consumer reaction and a reduction in consumer choice 
for food products in Hong Kong.  The Hong Kong Government (HKG) 
released a set of guidelines on voluntary labeling for biotech foods 
in July 2006.  While the HKG has not publicly announced its decision 
to implement a mandatory labeling scheme, pressure from some 
legislators has led officials to state they will formally introduce 
mandatory GM labeling in the coming year.  Presently, Hong Kong does 
not have any specific regulation regarding biotech foods.  Given the 
lack of public concern over GM foods, post believes that by taking a 
proactive approach to educate HKG officials, legislators, and media 
on the science-based principles and consumer benefits of 
biotechnology, post would be successful in keeping biotech labeling 
voluntary.  Post believes work in this area would have influential 
spillover effects in both Taiwan and the PRC.  Mandatory biotech 
labeling is a high priority issue for FAS posts throughout the 
region, and coordination with other posts is welcome and likely. 
Consulate General Hong Kong requests resources in the amount of 
$20,000 to carry out outreach and capacity building activities, 
including work with educators and institutions as outlined in para 
¶9. 
 
BACKGROUND 
 
Biotechnology Trade and Production 
---------------------------------- 
¶4. U.S. exports of agricultural and food products to Hong Kong 
totaled approximately $1.26 billion in 2007, ranking it as the 
15th-largest U.S. export market.  Of the $1.26 billion of exports, 
$710 million were consumer-oriented products and nearly $13 million 
were made up of corn and soybeans.  If a mandatory biotech labeling 
law goes into effect, most of these products would be affected.  The 
voluntary guidelines that were introduced in 2006 have not 
negatively affected U.S. exports to Hong Kong.  The HKG currently 
makes no distinction between conventional and biotech foods; all are 
subject to the same food safety regulation. 
 
¶5. Farming in Hong Kong is an insignificant industry with very 
limited future prospects.  Hong Kong itself does not commercially 
produce any biotechnology crops, nor does it conduct field trials. 
Except for research on biotech rice at the Chinese University of 
Hong Kong, all field trials are conducted in Mainland China.  In 
2003, the HKG announced a program for voluntary labeling for 
pre-packaged food and mandatory pre-market safety assessment 
requirements for all food products.  While the HKG has not set a 
date for the implementation of the mandatory pre-market safety 
assessment, it released the guidelines for voluntary labeling of 
biotech foods in order to answer the public call concerning 
consumers' right to make an informed choice on these products. 
 
¶6. The guidelines for the voluntary labeling program were formulated 
by a working group established under the Hong Kong Center for Food 
Safety.  Its members come from various sectors including 
manufacturing, wholesale, retail, consumer groups and government 
departments.  These guidelines are advisory in nature and do not 
have any legal weight.  Adoption is entirely voluntary and not 
binding.  As such, U.S. food exports should not be affected if they 
choose not to have any biotech labeling.  Since Hong Kong does not 
maintain a list of approved biotechnology crops, biotech crops can 
 
be imported into Hong Kong as conventional crops and are subject to 
the same legislation. 
 
HK to Review Its Biotech Policy in 2008 
---------------------------------------- 
¶7. Government sources revealed that the HKG will review its policy 
on the labeling of biotech pre-packaged foods and drinks over the 
coming year.  While the government has not announced its decision to 
implement a mandatory labeling scheme, industry sources have 
expressed certainty that the HKG is moving in this direction. 
 
Post Efforts to Steer HKG to an Interim 
Voluntary Labeling Scheme 
---------------------------------------- 
¶8. In 2000, in view of the mounting pressure of establishing a 
mandatory labeling policy in Hong Kong, the American Consulate 
General, Agricultural Trade Office (ATO) Hong Kong organized a 
series of activities including a video conference and a range of 
workshops targeting different audience groups clarifying the myths 
of biotech foods.   Distinguished subject-matter speakers from the 
U.S. were invited to take part in the workshops and video 
conference.   Upon concluding the outreach activities, HKG announced 
an interim voluntary labeling policy.  It will review that policy 
this year, and thus, Post believes now is the best time to stage 
another round of education.  Meanwhile, the HKG is closely 
monitoring the development of implementation details of the 
Cartagena Protocol.  Therefore, it is desirable to alert the 
government to the possible adverse impact implementation of the 
Protocol will bring. 
 
Proposed Capacity Building and Outreach Programs 
--------------------------------------------- --- 
¶9. The proposed outreach programs are designed to provide 
stakeholders with facts of biotechnology using a science-based 
approach.  Stakeholders would include key HKG regulators and 
officials who will work on the review and proposed adoption of a 
mandatory labeling law for Hong Kong.  In addition public outreach 
would be extended to educators, trade/industry, and other government 
officials based in Hong Kong, as well as the press and media. 
 
¶A. Biotechnology Outreach & Capacity Building Workshop (one-day): 
$9,000; requested resources would cover the expenses for an 
agricultural biotech expert and spokesperson from the United States 
to travel to Hong Kong.  Aim of activity - to educate stakeholders 
about the science-based facts surrounding biotechnology, benefits it 
offers to farmers, manufacturers, and ultimately consumers.  The 
Workshop will also provide insight into other voluntary labeling 
schemes around the globe and the positive affect it has had on 
consumer choice.  Post would work to coordinate special press 
interviews with the visiting expert and possibly participants to 
ensure maximum exposure of the program. 
 
¶B. Hong Kong University Panel Discussion on the Benefits of 
Biotechnology (1/2 day): $1,000; requested funds would cover costs 
of materials, invitations and logistics for the discussion session; 
Aim of activity - To provide educators and the U.S. biotech expert 
will hold a panel discussion at Hong Kong University and China 
University in Hong Kong on the application of biotechnology, 
science-based regulations, and benefits/consumer choice.  Post will 
work with the University to coordinate press coverage of the event 
and provide press points on the benefits of biotechnology for food 
products. 
 
¶C. Hong Kong Government Regulatory Officials Training in the United 
States (1 person): $10,000;  Aim of activity - one HKG official 
would travel to the United States to meet with USDA regulatory 
officials and other agencies to better understand the U.S. 
approaches related to voluntary labeling, biotech regulatory policy 
and the positive impact on consumers as well as heath safety. 
Official would also attend a special "Short Course" on biotechnology 
at Michigan State University to learn about the science behind 
biotechnology, applications, benefits, as well as meet with industry 
leaders in this field. 
 
STAKEHOLDER POINTS OF VIEW 
 
HKG Stance on Cartagena Protocol on Biosafety 
 
--------------------------------------------- 
¶10. The Hong Kong Government's Environment Bureau takes the lead on 
the implementation of the Cartagena Protocol on Biosafety.  While it 
is a policy bureau, the technical responsibility lies with the 
Agriculture, Fisheries and Conservation Department (AFCD).  AFCD is 
primarily responsible to provide infrastructure support services to 
promote agricultural production and sustainable development of 
agriculture and fisheries in Hong Kong.  In 2002, AFCD created a 
division called Biodiversity Conservation Division.  Among other 
duties, its role is to prepare Hong Kong to implement the Cartagena 
Protocol.  Hong Kong at present is not a party of the Convention on 
Biological Diversity and the Cartagena Protocol on Biosafety.  The 
application of international agreements to the Hong Kong Special 
Administrative Region, in this case, is handled by the People's 
Republic of China. 
 
Green Groups and Consumer Organizations 
------------------------------------------ 
¶11. The green groups and consumer organizations are key parties in 
Hong Kong advocating mandatory labeling of biotech foods.  Their 
rationale is based on consumers' right to know.  The safety issue is 
not their major argument.  The request of green groups and consumer 
organizations has gained support of certain Legislative Council 
(Legco) members.  In January 2000, Legco adopted a motion to "draw 
on the experience of most member states of the European Union and 
expeditiously legislate for a labeling system" and to "conduct 
strict examinations and tests" on biotech foods.  On June 2003, 
Legco passed a motion calling on the government to expeditiously 
establish a "voluntary first, and then mandatory" approach to a 
labeling system for biotech foods. 
 
Food Industry/Trade 
------------------- 
¶12. In general, food industry groups are opposed to mandatory 
labeling of biotech foods on the grounds that it would limit the 
choices of consumers, reduce variety of food supplies to Hong Kong 
and add burden to consumers and the industry alike. 
 
¶13. Post responsible officer is Anita Katial at 
anita.katial@usda.gov. 
 
CUNNINGHAM