Voluntary Report - public distribution

**Date:** 7/27/2005

**GAIN Report Number:** SP5023

PO0000

**Spain**

**Trade Policy Monitoring**

**Biotechnology Coexistence Update**

**2005**

**Approved by:**

![](media/image1.wmf)Stephen Hammond

U.S. Embassy

**Prepared by:**

Stephen Hammond

**Report Highlights:**

After eight years of incident-free biotechnology self-regulation
(coexistence), Spanish farmers will now experience Government-regulated
coexistence. This politically necessary approach will not improve the
spotless record of \"security\" in biotechnology seed use, nor dissuade
its cultivation in corn borer infected regions of Spain. It will mean
unnecessary expense for everyone from the national and autonomous
regional governments to the farmers planting biotechnology seeds, and
will not likely placate any of the activists regardless of their
\"activist\" positions. (CM4SH8)

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Madrid \[SP1\]

\[SP\]

The Government of Spain surprised almost everyone on Tuesday, July 19,
2005, by calling a news conference to announce a coexistence decree. In
the press conference, key representatives of the ministries of
agriculture and the environment presented the details, which track
closely with those we outlined in SP4028, and suggested that their
coexistence decree should be a model for the rest of Europe.

It is our understanding that the Royal Decree (Decree) will be finalized
along the lines currently presented by the end of calendar year 2005,
and will be operational for corn planting in 2006. As additional
biotechnology events are approved for planting, we expect Spanish
farmers to embrace them, in spite of the additional governmentally
sponsored burdens imposed by the Decree.

In addition to the elements we noted in SP4028, the Decree provides the
following additional detail:

**National and Autonomous Regional Governments:**

• Competent authorities from the ministries of agriculture and
environment, and the autonomous regional governments will work jointly
to elaborate an annual "National Supervision Plan" encompassing all
facets of coexistence, paying special attention to organic production,
the level of adventitious material resulting from the biotechnology
crops grown under the presently-proposed Decree, and to the labeling of
biotechnology crops.

**National Government Ministries:**

• The National ministries of agriculture and the environment will
elaborate a yearly report based on the information provided by the
autonomous regional governments. The report will focus on problems
between farmers planting biotechnology and traditional,
traditional/organic crops, the biotechnology adventitious levels in
traditional, traditional/organic crops, and farmer adherence to the
coexistence requirements. Once finalized, the Government will send the
report to the EC and the national biodiversity committee. The first
report will also address the economic effects of coexistence, and will
look at all possible means of compensating for the additional costs;
and,

• The ministry of agriculture will organize educational programs and
additional recommendations for biotechnology use by local farmers.

**Autonomous Regional Governments (ARGs)**

• ARGs will be permitted to regulate the dates that traditional,
traditional/organic, and biotechnology seeds are planted to avoid cross
contamination during pollination as an alternative to the implementation
of the 50-meter minimum distance requirement; and

• ARGs will be required to inspect biotechnology crops: during the
growing season to verify the information submitted by the farmer and
seed company; and, at harvest time to assure the proper use of grain
harvesters and the separation of biotechnology and non-biotechnology
crops through the point of first sale, including proper storage,
transport, and labeling of biotechnology crops. They must accumulate all
of this information, along with additional information to be made
available by the farmer, into a registry for each parcel of
biotechnology production, which must be sent to the ministry of
agriculture before March 1, of each year. In turn, the ministry of
agriculture must provide the information to the ministry of environment
where it will then be added to a national registry of biotechnology
crops.

**Farmers:**

• Farmers must establish 50 meters (up from 25 meters noted in SP4028)
as a minimum buffer between biotechnology, and traditional and/or
traditional/organic crops;

• Producers can use grain harvesters from field-to-field when the
production technique is the same, but must harvest 2,000 square meters
of traditional corn and label it biotechnology corn where the harvester
had been dedicated to the harvest of biotechnology corn and where it
will then be used in the harvest of traditional corn; and,

• Farmers could eventually face a fine of up to 300,000 Euros for
non-compliance of biotechnology provisions, which will be added to the
current seed law.

**Seed Companies:**

• Seed companies and/or any other biotechnology seed provider must
notify in writing all of the details of seed sales according to the
requirements of EC 1830/2003; and,

• These companies could also face a fine of up to 300,000 Euros for
non-compliance of biotechnology provisions, which will be added to the
current seed law.

**Local Responses:**

• The Spanish seed producers association recognized the work of the
governmental ministries in coming together on the proposed Decree.
However, the association warns that the Government is discriminating
against biotechnology and is requiring so much of biotechnology crop
producers that they may decide not to produce under the proposed Decree.

• Biotechnology seed company representatives believe the Government has
gone too far, proposing a Decree that will over regulate an industry
that has had tremendous success with self-regulation.

• The association of agriculture and livestock producers of Castilla y
Leon and Galicia reprimanded the Government for not allowing interested
organizations to see and debate the proposed Decree before making it
public. In addition, they say that the 50-meter buffer zone is
insufficient, and that the Decree fails to establish proper
responsibility for biotechnology contamination.

• The Antama Foundation, which promotes the use of biotechnology in
Spain, gave the Decree a positive review.

• Green Peace labeled the Decree a "disservice to Spanish
citizens\...the minimum distance of 50 meters is absurd, since the
pollen of transgenic corn can reach distances of up to 900 meters...the
Decree shouldn't be limited to establishing a minimum distance...instead
should establish sanctions on those that contaminate neighboring crops,
as well as provide compensation for those that are affected."