-Caveat Lector-

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Date: Wed, 19 Dec 2001 09:31:31 -0800 (PST)
From: Cheri <[EMAIL PROTECTED]>
Reply-To: [EMAIL PROTECTED]
To: paranoidtimes <[EMAIL PROTECTED]>,
     living <[EMAIL PROTECTED]>
Subject: [ParanoidTimes] US steps up pressure on Brussels over modified crops

INTERNATIONAL ECONOMY: US steps up pressure on
Brussels over modified crops: Bush administration
warns that continued EU moratorium may escalate trade
dispute, write Edward Alden and Michael Mann

Financial Times, Dec 18, 2001
By EDWARD ALDEN and MICHAEL MANN

The Bush administration is stepping up pressure on the
European Commission to approve imports of a dozen
crops made with genetically- modified organisms,
warning that a continuation of the moratorium could
escalate into a serious trade dis-pute.

Robert Zoellick, US trade representative, will raise
the issue today in meetings with senior EU officials
including David Byrne, health commissioner.

While the US remains extremely reluctant to launch a
dispute settlement case at the World Trade
Organisation, there is a growing belief in the
government and the US agricultural industry that it
may be the only way to end the de facto ban.

"The bottom line is the Europeans have to show they
have a workable system in place," said a US industry
official. "Otherwise it's a technical barrier to
trade" that violates WTO rules.

Any escalation in US pressure, however, risks
triggering a backlash among European governments and
consumers. With European public trust in food safety
at a low ebb, no new GM crops have been approved by
the EU for more than three years.

Applications from biotechnology companies to sell 12
new varieties of genetically-modified crops have
remained in limbo despite being declared safe by EU
scientific advisers.

The US has become increasingly impatient since earlier
this year when many EU member states said they would
not agree to lift the ban until the EU implemented new
labelling and traceability rules.

It will take at least two years before EU governments
and the European parliament can approve those rules,
while the Bush administration has protested that the
proposals are discriminatory and unworkable.

"I think there is frustration and it's growing," said
a senior US official. "We have tried to separate the
approval issue from the traceability and labelling
issue, but obviously the Europeans aren't doing that."

Alan Larson, US undersecretary of state, warned in
Brussels last week prior to meetings with EU officials
that it was "urgent for the EU to find a way to move
forward with the approval process".

While US pressure is increasing, Bush administration
officials are acutely aware that a WTO case could
result in a pyrrhic victory that the EU would refuse
to enforce.

"We don't want another hormone situation on our hands,
or to look like we're shoving GMOs down their
throats," the US official said. "On the other hand we
can't admit that we can't do anything."

The Commission itself is in an awkward position. In
principle, it has a legal duty to approve the products
stuck in the system if member governments fail to act,
and many in the Commission want to see the approvals
go forward. But it also fears a public relations
disaster if it chooses to override the wishes of
elected EU governments on such an emotive issue.

"We've done everything we can. We've put proposals on
the table as we were asked to do," said a senior
Commission official. "Forcing things through isn't the
approach we feel will unblock things. We're engaged in
a confidence-building exercise and consumers wouldn't
understand. In the long-run, it would just slow down
the process of winning people's confidence."

Asked whether the threat of a WTO panel would force
the Commission to change its mind, the official said:
"No one thinks it's a good idea to force products
through against the wishes of member states, but I
can't prejudge what we'd do if someone was smashing us
up against the wall."

Copyright: The Financial Times Limited 1995-1998

http://globalarchive.ft.com/globalarchive/articles.html?print=true&id=011218001083

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