http://euobserver.com/index.phtml?selected_topic=9&action=view&article_id=3251




US maintains pressure on EU over new GM laws

In the latest bout of trade disputes between the United States and the
European Union, the Bush administration officials are putting pressure on the
EU to abandon new restrictions on genetically modified (GM) foods, which were
proposed by the European Commission last month. Senior US officials have
repeatedly said that Brussels anti-GMO policy is discriminating against
American products and is in violation of World Trade Organisation (WTO)
requirements. They argue that the new rules are likely to cost US companies
$4bn and could disrupt efforts to start a new round of global trade talks
later this year.

The new EU laws, which must be approved by both the European Parliament and
the Council of Ministers before they can take effect, require that all
products containing genetically modified organisms are properly labelled as
such. At the moment, retailers in the EU must label a food consisting of or
containing GMOs, but currently some food ingredients are exempted from the
provisions (for example, refined soya or maize oil). The Commission has also
proposed tightening up the laws for tracing products from production through
to distribution, putting obligations on business operators to transmit and
retain information at each stage of the production process.

Washington is worried that the new rules will be unwieldy and will result in
a mountain of paperwork. At the moment, the US does not generally separate
modified and conventional crops, and many US businesses will have to
instigate far-reaching changes on the way they manufacture food if they are
to conform to the new legislation. America is also concerned that the EU's
proposals could prompt developing countries to introduce similar controls and
significantly limit the reach of the technology.

Undersecretary of State Alan Larson, the State Department's senior diplomat
assigned to economic issues, described the new EU restrictions as "a very
serious problem." Mr Larson is planning on lobbying EU governments to amend
the regulations before they take effect. He stressed the importance of
resolving the issue quickly so that it does not affect the start of the new
global trade talks planned for later this year.

The attitude towards GM crops is very different on either side of the
Atlantic. In the US, no labelling of GM foods is mandated and the stuff is
everywhere. According to Jeffrey Barach, a vice-president of the National
Food Processor's Association in Washington, two thirds of all food processed
in US contain GMO's. In fact, the combined countries of America, Canada and
Argentina account for 99 per cent of the world's GM crop plantings. By
contrast, the feeling towards GM crops in Europe is one of apprehension, even
though there is no conclusive proof that their existence is harmful to the
environment or to health. Just 0.3 per cent of the world's GM crops come from
the EU.

EU Commissioners Margot Wallstr�m, responsible for the environment, and David
Byrne, responsible for health and consumer protection, have welcomed the new
Commission proposals. "Citizens should have the right to choose whether what
they serve for dinner GMOs or not," said Ms Wallstr�m. However, Pascal Lamy,
commissioner for trade, added his voice to the dispute by arguing against
labelling.

The White House has made it clear that it will maintain pressure on the
European Union to relax legislation on GM imports, and has not ruled out the
possibility of a legal case before the WTO, which could result in a
potentially embarrassing and costly judgement for the EU.

Meanwhile, in France, anti-GM protestors have destroyed two fields of GM
crops, highlighting the adversity to the technology in Europe. The protests
were lead by radical farmers' leader Jose Bove, who came to fame after he
attacked a McDonald's restaurant in his home town of Millau in protest at US
trade restrictions.

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