Subject: [globalnews] EU Caving in to US on GM Food
(From Le Monde Diplomatique)

The United States wants the European Union to lift its 1998 moratorium on
the import of new genetically modified organisms. This is one-sided free
trading - as at the same time the US is adopting protectionist measures to
help its steel industry. The EC, far from resisting, is doing its
undemocratic best to help the US.
by SUSAN GEORGE *

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The United States declaration of unlimited war on terrorism was not the only
outcome of the 11 September attacks. Appealing to patriotism also enabled
President Bush to squeeze a bill through the House of Representatives, by
only 216 votes to 215, giving him trade promotion (formerly called fast
track) authority. If the Senate follows suit, the executive will be entitled
to negotiate international trade agreements without interference from
Congress, which will have no power of amendment. Congress will have to
accept or reject the texts as they stand, and outright rejection is
unlikely. Without such authority, it is argued, US negotiators lack
credibility, as their partners will fear negotiated agreements may be
vitiated by Congressional amendments.

With Congress still to take its final decision, the ministerial conference
of the World Trade Organisation (WTO), held last November in Doha, Qatar,
was another slap in the face for the opponents of neo-liberal globalisation
and a success for the business lobby. It launched a new round of
comprehensive negotiations, called the Doha Development Round, to take over
from the Millennium Round that failed in Seattle in December 1999. Of the
areas it covered, the environment is probably the most sensitive in the
immediate future.

Mention of the environment in the final declaration of the Doha conference
was mainly due to pressure from the European Union, backed by Japan, Norway
and Switzerland. India was strongly opposed to it, followed by most of the
developing countries and the US. But the cost of securing a mention of the
environment was very high. This was because of the inclusion of an important
rider making the results of future negotiations on compatibility between WTO
rules and multilateral environmental agreements binding only on countries
that have already signed MEAs - which is reason enough for all countries to
follow the example of the US and not sign, or renege. It was also because,
totally contradicting the stated aims, there is a risk of the WTO gaining
the upper hand over MEAs. And that is just what big businesses, especially
biotech firms, hope for.

Pascal Lamy, the European commissioner for trade, shares this perspective.
Before the signing of the Doha declaration, he wrote to his friend Robert
Zoellick, the US trade representative: "You have informed me of your
government's deep concern that Europe might use the negotiations decided on
in Doha to justify illegitimate barriers to trade, particularly trade in
biotechnological products and application of the commercial clauses of
present or future multilateral agreements on biosecurity. As the European
Commission's negotiator, I am writing to assure you that will not be the
case. I can also assure you I shall not use the negotiations to change the
balance of rights and obligations within the WTO with regard to the
precautionary principle" (1).

The last sentence speaks volumes. It means that there is no question of the
EU calling for the precautionary principle to be strengthened, no question
of the EU demanding that the burden of proof in biosecurity be reversed. So
any country or group of countries not wishing to import a given product
(like the EU and hormone-treated beef) will continue to be required to prove
that the product is dangerous. And the exporter will still be exempt from
any obligation to prove it is harmless. This was no doubt the return
demanded by Washington for its agreement to mention the environment in the
declaration.

The EU's capitulation on this issue may soon impact genetically modified
organisms (GMOs). Lamy's consideration for the US is not entirely
reciprocated. Barely a month after Doha, Zoellick announced that the Bush
administration was considering filing a complaint about Europe's alleged
delays in authorising imports of new GMOs, and its directives about
traceability and labelling.

The EU has effectively maintained a moratorium on the import of new GMOs
since 1998. In fact, the measures on traceability and labelling put to the
EU council and the European parliament last July, not yet implemented, are
the commission's chosen method of opening the door to new imports. By
enabling Europe's consumers to choose between products that do or do not
contain GMOs, the EU is attempting to make its policy acceptable. But the US
remains adamant: it is not prepared to countenance a moratorium or rules on
traceability and labelling. GMOs are harmless. End of story (2).

At present France is the mainstay of the anti-GMO blocking minority in the
EU environment council. It is supported by Denmark (but that country could
change its approach with the new rightwing government), Greece, Austria,
Italy and Luxembourg. This minority is shaky, and against a powerful
opponent. On 6 November, just before the Doha conference, 64 of the most
influential American agricultural groups and organisations (including
Cargill, Monsanto, the Farm Bureau Federation and the Grocery Manufacturers
of America), representing billions of dollars in exports, wrote to the
secretaries of commerce and agriculture, and to Ambassador Zoellick.
Denouncing the precautionary principle and the "illegitimate measures and
other technical barriers to trade" applied by the EU, they demanded the
government no longer allow the WTO agreements on sanitary and phytosanitary
measures and on technical barriers to trade to be flouted.


US patience wearing out


The American agricultural producers' lobby, backed in Washington by the
government machinery, claims the EU moratorium has cost $300m in lost
profits on maize alone. It is pushing harder because of the alluring
prospect of an American monopoly in all GMO agricultural products.
Discouraged by protest movements, the big European biotech firms have
abandoned agriculture for pharmaceuticals (3). Speaking in January to a
British farming conference in Oxford, US agricultural secretary Ann Veneman
claimed that US exports were always based on sound science: "Unfortunately
in Europe there is now a competing concept called the precautionary
principle, which seems to rest on the premise of the mere existence of
theoretical risk. [It] could easily block some of the most promising new
agricultural products, especially those based on biotechnology." Her
under-secretary of state, Alan Larson, appointed economic adviser to Colin
Powell, went further. A week later in Brussels, he warned that America's
"patience was wearing out".

The pressure to take the GMO issue to the WTO is mounting. Invoking the
earlier judgment against France for its refusal to import British beef
during the mad-cow crisis, Larson has proposed the commission refer France
and the other countries in the blocking minority to the Court of Justice in
Luxembourg: "We have all our options open. This is an issue that presidents,
premiers and chancellors must understand is very important to us. Sometimes,
if there's behaviour that's both inappropriate and illegal, you've got to
confront it. That's the only way you're going to change it" (4).

In January Zoellick sent 14 pages of instructions to US ambassadors
throughout the world setting out the arguments to be used in the event of
shilly-shallying by WTO member governments, especially the Fifteen. The EU's
proposed measures on the traceability and labelling of GMOs, he claims, "are
not workable or enforceable, would be very expensive to implement, and would
not achieve the stated objectives. [They would] unduly impair trade [and
apply] to products that have already been approved for use" - approved by
the American authorities, that is. "How will the EU ensure that the
authorisation is based on science and not on politics" (5)? This nightmare
scenario - which is how the US seems to view democratic decision-making -
can be avoided if the US plays its cards right. And the European Commission
is there to help it to do so.

On a visit to Washington last October, David Byrne, commissioner for health
and consumer protection, anticipated the moratorium would be lifted at the
European Council in Barcelona in March. Lamy, on a later trip to the US
capital, was more realistic. Swift action on the approval of new GMOs was
impossible in the current political climate, he said. The situation would be
more propitious "later this year". After the French and German elections?

Tony Van der Haegen, minister-counsellor for agriculture, fisheries and
consumer affairs in the European Commission's delegation to the US, seems
also to see himself as counsellor to the Americans. He is certainly prepared
to let them know what he thinks of his own employer. Van der Haegen has
described the EU procedure for taking decisions on the import of new GMOs as
an untenable position. This top EU official added that if the US were to
file a complaint with the WTO, we would lose. But it is not enough for Van
der Haegen to point out the weaknesses in the position he is supposed to
defend: he has also explained that the Americans would be ill-advised to
file a complaint on traceability and labelling with the WTO, because, if it
lost, "it would further undermine confidence in the WTO among the US
Congress and the public, and if it won, the EU would never be able to comply
for political reasons. The ensuing dispute would be worse than the beef
hormone case"(6).

The Bush administration is fine-tuning its GMO strategy on the strength of
this well-informed advice, bearing in mind elections in France and Germany.
It does not want a politically explosive WTO case to become an election
issue that could fuel the campaigns of anti-biotech forces within the green
parties (7). But it is determined to get its own way in the end


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* Vice-President of Attac France. Author of Remettre l'OMC � sa place, Mille
et Une Nuits, Paris, 2001, and, with Martin Wolf, Pour ou contre la
mondialisation lib�rale, Grasset, Paris, 2002

(1) Letter from Lamy to Zoellick, Doha, 14 November 2001, quoted in Inside
U.S. Trade, Arlington, vol 19, no 4, 23 November 2001.

(2) The products targeted by these proposals include chicory, maize, soya,
tomatoes, soya oil, corn oil and rapeseed oil, corn syrups and starches,
additives, and animal feed, but not products derived from animals fed on
GMOs.

(3) See Le Monde, 20-21 January 2002.

(4) Quoted in Chris Rugaber, "EU leaders summit in March may decide on
lifting of GMO moratorium, officials say", International Trade Reporter,
Washington, vol 19, no 2, 10 January 2002.

(5) Zoellick's instructions to US ambassadors can be found on the Inside
U.S. Trade website under the headline "US criticizes EU biotech rules at
WTO", document source USTR, document dated January 2002.

(6) Quoted in Chris Rugaber, "US to analyze EU biotech rules, plans WTO
submission", International Environment Reporter, Washington, vol 24, no 25,
5 December 2001.

(7) See "US pushes EU to restart biotech approvals, loosen regulations",
Inside U.S. Trade, vol 19, no 51, 21 December 2001.



Translated by Barry Smerin ...............................................

Be the change
you want to see in the world.
-- Mahatma Gandhi



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