GMO UPDATE: WTO, EU, ARGENTINA, BRAZIL

WTO Biotech Ruling Delayed Until January 2006

The WTO dispute panel adjudicating the case brought by the US, Canada and Argentina against the EU's alleged de facto moratorium on the approval of new genetically modified organisms (GMOs) has once again pushed back the date for issuing its preliminary ruling, this time to January 2006. Panel Chair Christian Haberli informed the parties to the dispute on 3 October that the panel would be unable to meet the 10 October deadline that it had announced in July (see BRIDGES Weekly, 3 August 2005). This means that the much-awaited ruling will not be released before the Hong Kong Ministerial Conference in December. Trade sources speculate that the ruling might have been delayed due to concerns that its findings could adversely affect negotiations in Hong Kong, especially given that civil society reactions are expected to be substantial.

The controversial case springs from the complainants' allegation that the EU's failure to approve any GMO between 1998 and 2004 constitutes a de facto moratorium that, along with marketing and import bans within the EU, is not scientifically justified and thus contrary to WTO rules. Some see the dispute as a test case for how the WTO will deal with precautionary decision-making. The panel was originally expected to present its report in September 2004.

EU court rules against Austrian regional ban on GMOs

The EU Court of First Instance on 5 October ruled against a 2003 draft law passed by the parliament of Upper Austria that aimed to prohibit the cultivation of GM crops in the region. The Austrian province's Genetechnology Prohibition Law was based on a precautionary approach, with the argument that genetically modified crops could potentially damage ecosystems. However, the second highest court in the EU argued that general considerations of precaution, as put forward by the Austrian region, constituted no proper scientific evidence "by their general nature". In addition, the court argued that the failure of the government to demonstrate even the presence of GMOs in the regions, let alone the existence of a significant problem caused by GMOs, weighed against them. Along with similar bans in 163 other regions across the EU, the measure was based upon a 2001 EU law that allows for national or regional bans on a product authorised across the EU if new scientific evidence was provided to justify the measure. However, the European Food Safety Authority (EFSA) declared Upper Austria's move illegal under EU internal market rules soon after Austria notified the measure in March 2003, which means that the law remains in draft form. While the European Commission welcomed the ruling, Friends of the Earth Europe called for European law to reflect the wishes of the majority of European citizens, which they suggested could be achieved through a new European law allowing regions to ban genetically modified crops.

Argentina meets with European Commission over Monsanto lawsuits

At a meeting with European Commission officials on 6 October, Argentine Agriculture Secretary Miguel Campos argued that Monsanto's claims to royalties on Argentinean soybean exports to EU countries were unfounded. Monsanto has been filing lawsuits in European courts since June 2005, alleging that they deserve to collect royalties on Argentinean exports of soybean to EU countries in which the company has patent protection for its Roundup Ready soybean. Monsanto does not collect royalties on the sale of soybeans that contain the Roundup Ready (RR) gene in Argentina owing to a disagreement regarding Monsanto's rights over the technology in the country (see BRIDGES Trade BioRes, 22 July 2005). Campos argued that since Monsanto's patent protection in Europe extends strictly to soybean seeds and not to the grain, meal or oil actually produced by them, Monsanto could not lay claim to royalties for processed Argentinean soy products that arrive at EU borders. Monsanto, on the other hand, argued that as long as the RR gene can be detected, they have the right to collect royalties. Monsanto spokesman Federico Ovejero noted, however, that "while we are still moving forward with the lawsuits, our preference is to reach a consensus agreement locally in Argentina". Argentina exported around 10 million tons of soybeans, soy oil and soy meal to EU countries last year.

Brazilian biotech conference calls for open debate on GMOs

Participants in the fourth Brazilian Congress on Biosafety and the fourth Latin-American Symposium on Transgenic Products held from 26 to 29 September agreed to strengthen cooperation amongst Latin American countries in the fields of biosecurity, biosafety regulations and public communication and perception. The meeting, which was organised by the National Biosecurity Association (ANBio) -- a non-profit scientific society providing information and capacity building on biosafety in Brazil -- in Porto Alegre, Brazil, issued a manifesto that called for the support of scientific autonomy in biotechnology research while taking into account ethical principles in the use of biotechnology as an alternative to solve the health, agriculture and environmental problems of Brazil. The manifesto also called on the Brazilian government to issue regulations to implement its new Biosafety Law (see BRIDGES Trade BioRes, 1 April 2005) and to ensure that the debate on biotech products is open, frank and supported by solid scientific data. The manifesto also said that the regulation must promote the international competitiveness of Brazil in the field of biotechnology, while guaranteeing the preservation of the country's biodiversity for future generations. Innovations in biotechnology have led to the development of insulin, vaccines and other health necessities, they pointed out, and also have potential for agriculture. GM crops that allow for more intensive production, they suggested, could halt the rate of deforestation and reduce pesticide use.

ICTSD Reporting; "WTO Postpones Ruling on EU Restrictions On GMOs Until After Hong Kong Ministerial," WTO REPORTER, 5 October 2005; " European Court overrules ban on GM crops," FOEE, 5 October 2005; "Regions not allowed to ban GMOs, court rules," EU OBSERVER, 5 October 2005; "Monsanto strikes royalty deal for transgenic soybean seeds," VALOR ECONOMICO, 3 October 2005; "Brazil biosafety congress yields manifesto," CROPBIOTECH UPDATE, 7 October 2005; "Brazil's Monsanto RR soy patent questioned in Brazil ," MARKET WATCH, 26 September 2005; "Monsanto responds to news reports questioning patent situation on Roundup Ready soybeans in Brazil," MONSANTO, 27 September 2005; "Argentina's Ag Sec to discuss Monsanto with US Ag Sec," DOWJONES, 12 October 2005; "Argentina Ag secretary says Monsanto EU patent claims wrong," BUSINESS ONLINE, 10 October 2005.