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Us demands wto finds eu gm ban illegal

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   http://quote.bloomberg.com/apps/news?pid=10000085&sid=apFLEKxFj5vo&refer=europe

http://quote.bloomberg.com/apps/news?pid=10000085&sid=apFLEKxFj5vo&refer=europe

U.S. Demands WTO Find EU Genetically Modified Food Ban Illegal
Aug. 18 (Bloomberg) -- The U.S., Canada and Argentina called on the World Trade Organization to outlaw a European Union ban on new gene-modified crop varieties that U.S. farmers say has cost them $1 billion in lost grain sales, the EU said.

The world's three biggest grain growers of gene-modified crops asked the Geneva-based trade arbiter to create a panel to rule on what the U.S. says is a continued ban by the EU on new approvals of genetically engineered seeds. The EU says new legislation aimed at lifting the five-year-old moratorium make the case irrelevant.

The European Commission, which supports gene-modified foods, says labeling and tracing rules approved last month will enable the six nations blocking approvals to drop their prohibition on new products. The EU has even threatened to take the six countries -- Germany, France, Italy, Austria, Luxembourg and Greece -- to court to press them to approve new biotech foods.

``Only a month ago, we updated our regulatory system on GMOs in line with the latest scientific and international developments,'' EU Health Commissioner David Byrne said in a statement issued in Brussels. ``Clear labeling and traceability rules are essential to help restore consumer confidence in GMOs in Europe.''

The 15-nation EU is blocking today's request, which the U.S., Canada and Argentina will have a chance to repeat on Aug. 29. Under WTO dispute rules, a government can only obstruct a first request for arbitration. On a second request, a panel is automatically set up to rule.

The three governments say EU legislation to end the ban isn't in effect and still faces obstacles in the six countries that said in 1998 they would block all new gene-modified crop registrations pending strict labeling and monitoring rules requiring food companies to trace products through the food chain.

At stake for the U.S. are markets for seeds produced by Monsanto Co., Syngenta AG, Novartis AG and other companies to help farmers grow crops altered to resist pest infestations and disease. The U.S. fears that other countries will use the EU's restriction to justify prohibitions on the crops.

BEUC, a European consumers' organization in Brussels, says it supports giving shoppers the choice whether to eat genetically modified food. About 60 percent of all packaged foods contain soybean-derived ingredients, and the main soybean suppliers are U.S. companies.

Last Updated: August 18, 2003 06:10 EDT


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