US launches WTO case against EU moratorium on genetically modified organisms (GMOs), May 2003

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Series Details 19.5.03
Publication Date 19/05/2003
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On 13 May 2003 the US Trade Representative Robert Zoellick and Agriculture Secretary Ann Veneman announced that the United States, supported by Argentina, Canada, and Egypt, was filing a World Trade Organization (WTO) case against the EU over its five year moratorium on approving agricultural biotechnology, or GMO, products. Nine other countries have joined as third parties in support of the case: Australia, Chile, Colombia, El Salvador, Honduras, Mexico, New Zealand, Peru and Uruguay. (See US Trade Representative Biotechnology website for links to the official press releases and further background information).

Background

The introduction of genetically modified (GM) crops is a highly controversial technology with their effect on human health, in particular the long-term risks, and their environmental impact being hotly debated issues.

In Europe, a recent string of highly publicized food safety crises have heightened public concerns about food and made consumers particularly wary of GM foods. In October 1998 these consumer fears about the long term effects on health of GM technology led to the EU stopping approval of new GMOs that would be placed on the market - the de facto moratorium. A group of six Member States (France, Denmark, Italy, Greece, Austria and Luxembourg) declared that they would vote against any GMO marketing application until further rules were put into place ensuring firstly that GM products can be traced back to their source, and secondly that all GMO-derived products are labelled.

US farmers and the biotechnology industry have grown increasingly frustrated with the EU ban. It has been estimated that US exports totaling $300m are being lost each year. These concerns were exacerbated in 2002 when a number of African countries refused to accept shipments of American food aid on the grounds that they may contain GM crops.

In its response to the May 2003 US announcement, "European Commission regrets US decision to file WTO case on GMOs as misguided and unnecessary", the European Commission regretted the move as "legally unwarranted, economically unfounded and politically unhelpful".

EU Trade Commissioner Pascal Lamy said: "The EU's regulatory system for GMO's authorisation is in line with WTO rules: it is clear, transparent and non-discriminatory. There is therefore no issue that the WTO needs to examine".

David Byrne, EU Commissioner for Health and Consumer Protection, recalled that it is the lack of consumer demand for genetically modified (GM) products that accounts for the low sales of GMOs in the EU market. "Unless consumers see that the authorisation process is up to date and takes into account all legitimate concerns, consumers will continue to remain skeptical of GM products".

EU Commissioner for the Environment Margot Wallström added: "This US move is unhelpful. It can only make an already difficult debate in Europe more difficult. But in the meantime, the Commission strongly believes that we in Europe should move ahead with completing our legislation on traceability and labelling and on food and feed, currently before the European Parliament. We should not be deflected or distracted from pursuing the right policy for the EU".

Reactions

As might be expected, the biotechnology industries are broadly in support of the US position while the environmental and consumer groups have been more supportive of the EU approach.

Supporting the US position

In a press release urging the rapid resolution of EU Moratorium and WTO complaint, The European Association for Bioindustries (EuropaBio) is broadly sympathetic to the US action, noting that:

while it would have been preferable to resolve this issue without WTO action, the EU biotech industry understands the frustration of the EU's trading partners with some Member States which continue to look for justifications not to permit the importation of safe products of GM technology ...

EuropaBio looks forward to an amicable resolution of the WTO consultation based on the willingness of the Commission, the Parliament, and the Member States to expedite finalisation of the EU legislative package and the approval of new products. The industry requires workable legislation which gives choice to all those in the food chain from grower to final consumer.

EuropaBio believes that both farmers and consumers should have the right to choose what crops they want to grow and which products they want to buy. The de facto moratorium by some Member States reduces the choices of other Member States who wish to use this technology. Governments need to implement legislation effectively so as not to disadvantage European farmers.

The National Corn Growers Association of America is critical of the European stance:

Unfortunately the Europeans have brought this on themselves while at the same time spreading fear and hysteria throughout the world based on the political agenda of extreme environmental groups. Biotechnology is an integral part of feeding the world in the future and to raising the standard of living in developing countries.

CropLife America, a body representing the developers, manufacturers, and distributors of plant science solutions for agriculture and pest management in the United States, said that the EU biotech moratorium challenge is "justified and long overdue".

Supporting the European Union

Environmental and consumer groups in Europe and the United States have responded forcefully, condemning the US decision and defending Europe's position.

Friends of the Earth GMO campaign coordinator Geert Ritsema, said:

"Friends of the Earth will step up its GM campaign to fight this outrageous challenge to Europe's right to say no to GMOs."

Similarly critical reactions from MEPs in the Greens/EFA Group in the European Parliament are contained in a press release:

Hiltrud Breyer, a Green Party MEP from Germany said that

This move represents a major miscalculation by the US administration. Even if the WTO decides that the EU moratorium is illegal, this action will not convince European consumers who, in their vast majority, still reject GM food,

While Jill Evans, a Plaid Cymru MEP from Wales felt that

Ultimately, this case might show that something is wrong with both GMOs and the WTO

"The Bush Administration's challenge in the WTO is a challenge to every consumer's basic right to know and to be assured of safety", says Rhoda Karpatkin, president emeritus of Consumers Union, a US consumer organisation.

Background to EU action on GMOs

The main legislation under which experimental releases and placing on the market of GMOs were authorised in the Community was Directive 90/220/EEC. However, it was accepted that this regulatory regime was incomplete to address the challenges posed by the modern technology of genetic modification.

This Directive was repealed by the new, updated Directive 2001/18/EC on the deliberate release of genetically modified organisms. This new Directive, which came into force in October 2002, puts in place an approval process on a case by case assessment of the risks to human health and the environment before any GMO or product consisting of or containing GMOs, such as maize, tomatoes, or microorganisms can be released into the environment or placed on the market.

According to the Commission (press release of 13.05.03) the entry into force of these improved rules on approval procedures has enabled biotech companies to submit revised applications for approval of their innovative products. Recently two cotton seed oils for food use have been placed on the market in the EU following authorisation. A number of new applications for marketing of GMOs are at an advanced stage of examination and may therefore be granted over the next months in line with EU legislation. (A list of eighteen current notifications under Directive 2001/18/EC are listed in Annex 3 of Questions and answers on the regulation of GMOs in the EU.)

Products derived from GMOs, such as paste or ketchup from a GMO tomato are not covered by this horizontal Directive but by vertical, sectoral legislation, for example the Regulation on Novel Foods and Novel Food Ingredients of 27 January 1997(Regulation (EC) 258/97). Directive 90/219/EEC, as amended by Council Directive 98/81/EC on the contained use of genetically modified micro-organisms (GMMs), regulates the contained use of GMMs for research and industrial purposes.

[Further detailed information is available in a Commission Factsheet produced in March 2003: Questions and answers on the regulation of GMOs in the EU]

Further proposals

The above Directive 2001/18/EC and two proposals for Regulations, both of which are currently before the European Parliament, are expected to pave the way for a resumption of GM authorisations in the European Union.

The package consists of:

  • a proposal for a Regulation on traceability and labelling of GMOs and products produced from GMOs (COM (2001) 182 final, 25 July 2001
  • a proposal for a Regulation on GM food and feed (COM (2001) 425 final, 25 July 2001)

The proposals aim to put into place a stringent regulatory framework and to close existing legal gaps. They set up a harmonised community system to trace GMOs, introduce the labelling of GM feed, reinforce the current labelling rules on GM food and establish a streamlined authorisation procedure for GMOs in food and feed and their deliberate release into the environment.

The intention is that with the labelling of all GM food and feed products consumers and farmers will be able to decide if they want to buy food or feed produced from a GMO, or not.

Future developments

The EU maintains that, once it has adopted the rules on labelling and traceability, it may well be able to lift the de facto moratorium on GMOs by the end of the year - before the WTO case is decided.

Coming so soon after the problems experienced between the US and Europe in the build-up to war in Iraq, US/EU relations will be further strained. In addition, even if the United States win the case in the WTO, it will be consumer public opinion that decides whether to accept GM food or not. (For further comment and analysis see Financial Times articles 14 and 15.05.03 listed below). As Caroline Lucas a Green UK MEP declares:

"The US is trying, yet again, to impose its unpopular policies on Europe when it has yet to rebuild the bridges it tore down in the run-up to the war in Iraq. This could be the last straw."

By being asked to rule in such a sensitive trade conflict between two economic superpowers, the authority of the WTO will be put under strain. The organisation has already been criticised for past decisions in trade disputes, on the grounds of encroaching on national sovereignty.

Further information within European Sources Online

European Sources Online: Financial Times
29.08.02: Bid to break deadlock over genetically modified food
14.10.02: Genetic code
15.10.02: US shifts tactics in GMO clash with EU
18.10.02: EU ban stays on new GM crops
31.10.02: GM food industry gears up campaign
12.11.02: Warning on GMO rules delay
22.11.02: Backing for EU biofood report
28.11.02: EU seeks pact on GMO labelling rules
01.12.02: Commission seeks consensus on GM labels
11.12.02: US may challenge genetically modified food rules
18.12.02: Seeds of conflict
10.01.03: US ready to declare GM food war
04.02.03: Brussels tells EU to end delays on modified crops
06.03.03: Europe's organic farmers will have to shoulder the economic burden of genetically modified crops being grown alongside conventional varieties
06.03.03: White House under fire for biotech foods policy
11.04.03: Brussels warns 12 countries on modified food
14.05.03: Crop ban opponents launch case against EU
14.05.03: Sowing discord: after Iraq, the US and Europe head for a showdown over genetically modified crops: comment and analysis
14.05.03: The trans-Atlantic train collision (editorial)
14.05.03: Scientists disagree, but farmers' harvests grow
15.05.03: A trade battle that will cost America dear
17.05.03: US reheats the GM food debate
19.05.03: Washington's patience at an end as it pushes for the EU to lift the biotech moratorium
 
European Sources Online: European Voice
31.01.02: What the EU is doing about 'Frankenstein' food
05.12.02: Pan-EU network launched to check GMO levels in food
12.12.02: Controls agreed for GMOs
16.01.03: US blames Europe's GMO ban for 'letting people starve in Africa'
23.01.03: 'If US stops lying about us, we'll stop telling the truth about them'
30.01.03: Africans bring their biotech message to Brussels
06.03.03: "Keep organic crops GM clean", Brussels told
30.04.03: Greens accuse Commission of snubbing them at GM hearing
15.05.03: US challenge to GM approvals ban under fire from Commission
 
European Sources Online: In Focus
12.10.01: Genetically modified organisms: Replacement of Directive 90/220, and new proposals on the traceability and labelling of food containing GMOs
26.06.02: GMOs: EU ratifies the Cartagena Protocol on biosafety, June 2002
04.07.02: European Parliament votes on GMOs, July 2002
15.10.02: GMOs: EU agriculture ministers fail to reach an agreement on GM food and feed, October 2002
 
European Sources Online: Topic Guides
The European Union and the United States
Food safety

Information from the EU institutions
(long-term access cannot be guaranteed)

European Commission: DG Agriculture
Genetic resources and GMOs
 
European Commission: DG Environment
Biotechnology
 
European Commission: DG Health and Consumer Protection
Food safety: from the farm to the fork: Genetically modified organisms (GMOs)
Questions and answers on the release of GMOs in the EU [pdf] March 2003
Community legislation in force
  Authorisation
  Labelling
  Ongoing legislative initiatives
  List of authorised GMOs [pdf]
 
European Commission: DG for Press and Communication: RAPID: Press releases
04.03.03: Questions and answers on the regulation of GMOs in the EU
13.05.03: European Commission regrets US decision to file WTO case on GMOs as misguided and unnecessary
 
European Commission: DG Trade
Trade in agriculture
  EU world trade and WTO
  WTO dispute settlement
 
European Commission: EurLex
Directive 2001/18/EC of the European Parliament and Council
  Regulation on Novel Foods and Novel Food Ingredients of 27 January 1997(Regulation (EC) 258/97).
Directive 90/219/EEC, as amended by Council Directive 98/81/EC on the contained use of genetically modified micro-organisms
 
European Commission: PreLex
Follow the progress of the current legislative proposals:
  Proposal for a Regulation on traceability and labelling of GMOs and products produced from GMOs (COM (2001) 182 final)
  Proposal for a Regulation on GM food and feed (COM (2001) 425 final)
 
European Commission: Joint Research Centre
Institute for Health and Consumer Protection
  Biotechnology and GMOs Unit
  Biotechnology and GMOs information website
  European Network of GMO laboratories
 
European Food Safety Authority
Home page
 
European Parliament: Greens/EFA
13.05.03: US to file WTO case against Europe's GMO moratorium: Greens/EFA condemn US-led assault on EU' regulation of GMOs
 
Information from United States organisations
(long-term access cannot be guaranteed)
 
Biotechnology Industry Association
US files WTO case against EU: WTO Background Information
 
CATO Institute
Ronald Bailey, The Looming Trade War Over Plant Biotechnology [pdf] Trade Policy Analysis No. 18, August 1, 2002
 
Croplife America
13.05.03: Croplife America says EU biotech moratorium challenge is "justified and long overdue"
 
Pew Initiative on Food Biotechnology
U.S. vs. E.U.: An Examination of the Trade Issues Surrounding Genetically Modified Food [pdf] 2002
 
National Corn Growers Association (of America)
Home page
Biotechnology
15.05.03: NCGA disappointed - but not surprised - at European reaction to WTO case
 
United States: Department of Agriculture
13.05.03: US and Cooperating countries file WTO Case Against EU Moratorium on Biotech Foods and Crops
 
United States: Office of the Trade Representative/Department of Agriculture
Biotechnology
Announcement (13.05.03)
  U.S. and Cooperating Countries File WTO Case Against EU Moratorium on Biotech Foods and Crops - EU's Illegal, Non-Science based Moratorium Harmful to Agriculture and the Developing World [pdf]
  Webcast of press conference
  Transcript of press conference
  US consultation request to European Commission [pdf]
Factsheets
  Why we need to act now: the effect of Europe's policies are spreading
  The EU ban on agricultural biotech products is illegal
  Biotech products are safe and healthy
  Biotech products can spur productivity
  Biotech products benefit the environment
  Choice: let consumers decide
Background
  Five years of US patience, five years of European delays
  More information on the US Biotech Regulatory System
  Procedure and timeline for a WTO case

Further information can be seen in these external links
(long-term access cannot be guaranteed)

Ascribe Newswire
14.05.03: US consumer group condemns announcement of WTO challenge on modified foods
 
Australia: The World Today
Row breaks out over trade in GM crops
 
BBC News Online
25.06.99: EU clamps down on GM foods
17.10.02: EU tightens GM food law
12.02.03: The role of the World Trade Organisation
13.05.03: US launches GM trade war
 
BEUC
Home page
Campaign for food safety
 
Consumers Union
13.05.03: Consumers union criticizes Bush WTO challenge on bioengineered food
 
Environmental News Network
14.05.03: US seeks to end E.U. biotech moratorium
 
Europabio (European Association for Bioindustries)
Home page
13.05.03: Europabio urges Rapid Resolution of EU Moratorium and WTO complaint
 
Foodnavigator.com
14.05.03: US biotech WTO move knocked by EU
 
Friends of the Earth Europe
European GMO Campaign
13.05.03: Moment of truth over GM as US files WTO complaint
GMOs - Co-existence or contamination? Conference 28th May 2003
 
Genewatch
The GM debate
 
Greenpeace
13.05.03: USA launches trade war with Europe over GM foods
 
United Kingdom: Department for Environment, Food and Rural Affairs
15.05.03: Press release: Margaret Beckett disappointed at challenge to EU on trade in GM food and crops
GM crops website
 
United Kingdom: House of Lords: Select Committee on European
EC Regulation of genetic modification in agriculture 2nd report session 1998/9. 2 vols
 
Monsanto UK
Home page
Latest news
13.05.03: Europabio urges Rapid Resolution of EU Moratorium and WTO complaint
 
Nuffield Council on Bioethics
Genetically modified crops: the ethical and social issues
 
Organic Consumers Association
Home page
13.05.03: Bush administration again threatens EU on GMO ban (from Wall Street Journal)
 
United Nations Environment Programme
GMOs
 
World Trade Organisation
Home page

Subsequent information can be found in European Sources Online by an 'Advanced Search' and choosing 12.8.a from the Subject list.

Rohan Bolton
European Sources Online Researcher
Compiled: 19 May 2003

The United States has filed a case at the World Trade Organisation against the EU over its five year moratorium on approving GM products.

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