WTO BIOTECH RULING: DEADLINE SET FOR COMPLIANCE

The EU has agreed with the US, Argentina and Canada on a 21 November deadline for compliance with the WTO dispute ruling in the high-profile case on the EU's approval process for genetically modified organisms (GMOs).

Under the ruling, made public on 29 September 2006, the application of EU-wide and national moratoria on the approval of new biotech products at the time the case was filed were doomed illegal under WTO law (see Bridges Trade BioRes, 6 October 2006 http://www.ictsd.org/biores/06-10-06/story1.htm).

The compliance deadline, announced by the four parties on 26 June, is fixed twelve months after the panel ruling was formally adopted by WTO members. The panel requested the EU to bring the moratoria in line with the provisions of the Sanitary and Phytosanitary Agreement (SPS) Agreement "if, and to the extent that" these measures have "not already ceased to exist." It did not question the right of countries to introduce strict biosafety laws, nor the right of an EU member state to ban a biotech product. The EC decided not to appeal the ruling (see Bridges Trade BioRes, 1 December 2006 http://www.ictsd.org/biores/06-12-01/story4.htm).

Documents obtained by Friends of the Earth suggest that the US is putting pressure on the EU to lift national bans on the marketing and import of specific biotech products that have already been approved at the EU-wide level, accelerate the approval process of new biotech products by the European Food Safety Authority, and speed up approval of GMOs of commercial interest to the US.

According to a trade official, the interest of the four parties is to find practical solutions for biotech products with economic potential. Meanwhile, EU national governments continue to be deadlocked over biotech product imports.

Product by product solutions

According to the documents obtained by Friends of the Earth, the products under "negotiation" are of particular economic interest to the US. They include maize, cotton, sugar beet, and maize seeds. The documents also reveal that the European Commission agreed to draw the attention of the European Food Safety Authority to "economically important" biotech products, and "is determined to lifting national bans."

In a speech in Brussels on 14 June, EU Trade Commissioner Peter Mandelson warned that as the global market for GM products grows, EU application of its risk-management systems will come under greater international scrutiny. He warned that "if we fail to implement our own rules, or implement them inconsistently, we can - and probably will - be challenged," referring to EU member states that are refusing to lift their GMO bans. He also said that Europe should modify its defensive attitude towards trade in biotech foods and seeds. Mandelson argued that genetically modified foods have played an important role in agricultural productivity in the past and will be essential to provide sufficient food and feed stocks for a growing population in the developing world and for adapting agriculture to climate change.

Mandelson also argued that it was an economic risk for Europe to fall behind the global economy in approving safe biotechnology. He declared that "isolation from international trade in agricultural biotech products that have passed credible safety standards simply may not be a viable option for the EU, and we have to understand this reality."

The objective of the four parties is not to escalate the conflict, official sources said. However, if Brussels does not comply with the WTO ruling by November 21, it is up to the US, Canada and Argentina to decide what to do. Options include the establishment of a compliance panel or the extension of the time for compliance.

EU deadlock over biotech products

In related news, the EU's national governments failed on 25 June to agree to allow imports of a genetically modified strain of corn. While the European Food Safety Authority declared in April that this corn, know as Herculex RV and developed by Dow Chemicals Co. and E.I. DuPont De Nemours & Co, is safe for the EU market, some governments and environmental groups said that the strain could be hazardous for human and animal health. Friends of the Earth Europe said that "this is a clear signal that member states have put safety and the environment before US trade interests and that the concerns of EU citizens can prevail over formidable lobbying from biotech companies."

The fact that the national government did not agree will delay the import of the GM corn. However, it will eventually be allowed into the EU market. If EU national agricultural ministers cannot make a decision within the next few months, the European Commission has the right to approve the strain for import for a period of 10 years.

In further news, the Greek government announced on June 26 that it was extending its national ban on a genetically modified corn seed know as MON810 for two years. Produced by leading US biotech company Monsanto, MON810 corn was designed to resist a European pest that attacks corn stalks and thrives in warmer climate, and has been approved for sale in the EU market since 1998. However, some EU countries are concerned that the protein contained in its seed could be harmful to human and animal health.

Austria and Hungary also maintain national bans on the use and import of MON810 corn. This national ban was cited by the US, Canada and Argentina in the WTO dispute targeting the EU's national moratoria on the approval of new biotech products. In December 2006 EU member states rejected a European Commission proposal requiring Austria to lift its ban (see Bridges Trade BioRes, 19 January 2007, http://www.ictsd.org/biores/07-01-19/inbrief.htm#4).

ICTSD Reporting; "US Still Bullying EU to Market GMOs", FRIENDS OF THE EARTH, Press Release, 30 May 2007; "New Documents Reveal US Pressure for More GMOs in Europe", FRIENDS OF THE EARTH EUROPE, Media Briefing, 30 May 2007; "More EU States Wary on GMO Maize, Debate Hots Up", PLANET ARK, 6 June 2007; "EU Stands Up to US Pressure - Unfazed by Genetically Modified 'Herculex'", FRIENDS OF THE EARTH EUROPE, 25 June 2007; "EU Govts Deadlocked over Genetically Modified Corn Imports", DOW JONES NEWSWIRES, 26 June 2007; "EU Receives Deadline of Nov. 21 To Comply With WTO GMO Ruling", BNA INTERNATIONAL TRADE REPORTER, 28 June 2007.