EU UNDER PRESSURE ON GM REGULATIONS

The US, Argentina and Canada asked WTO Director-General Supachai Panitchpakdi on 23 February to appoint panellists to rule on their WTO complaint against the EC. The co-complainants have challenged the EC five year de-facto moratorium on genetically modified organisms (GMOs) (see BRIDGES Trade BioRes, 25 August 2003). Under WTO rules, the Director has 10 days, or until 4 March, to select the panellists. According to a US official, the US delayed asking Supachai to make appointments within 20 days of the date the panel was established in August 2003 in an attempt to reach an agreement with the EC on panel selection. The co-complainants argued that this moratorium on the approval of biotech products since October 1998 violates various provisions under the WTO's Agreement on Sanitary and Phytosanitary Measures, the Agreement on Agriculture and the Agreement on Technical Barriers to Trade. They argue that the prohibition or blocking of importation and marketing of GM products is not legally or scientifically justified, asserting that GMO varieties in question are perfectly safe. The EC has countered by saying that market authorisation has been granted to 18 GMOs, with 20 applications pending approval, including Monsanto's Roundup Ready corn and cotton.

In related news, China recently granted safety permits to Monsanto for the importation of bioengineered farm products. These permits, valid for three to five years for five crops including soybeans, corn and cotton, were granted in order for China to replenish grain stocks after years of harvest declines. Although China has remained cautious on the commercial planting of bioengineered crops for human consumption, billions of dollars have already been invested into research and development of growing transgenic cotton. In a statement, the Chinese ministry said it was considering applications from four other foreign companies: DuPont, Dow Chemical unit Dow AgroSciences, Syngenta and Germany's Bayer AG.

"Boost for Transgenic Foods as China Widens Imports," ENN, 25 February 2004, "US, Partners Step up Pressure on EU, Seek Selection of WTO Panel in GMO Row" WTO REPORTER, 25 February 2004.

TALKS ON IMPROVING PLURILATERAL GPA ONGOING

A series of informal meetings among members of the plurilateral WTO Government Procurement Agreement (GPA) took place last week. Discussions focused on forthcoming negotiations aiming at the simplification and improvement of the GPA, at the reduction of remaining discriminatory practices, as well as at the extension of the coverage of the Agreement among parties. According to a trade delegate, members of the GPA will agree on modalities for negotiations at their next formal meeting, scheduled for 23 April. The delegate indicated that additional WTO Members, including developing country Members, would join the 28-member Agreement. Bulgaria, Estonia, Jordan, the Kyrgyz Republic, Latvia, Panama, and Chinese Taipei are in the process of negotiating their accession to the Agreement.

The Agreement has a built-in negotiating agenda, calling on the parties to undertake further negotiations no later than the end of the third year from the date of its entry into force (1 January 1996), "with a view to improving the Agreement and achieving the greatest possible extension of its coverage among all Parties and eliminating any remaining discriminatory measures and practices". Formal and informal consultations have taken place among Member states on the issue. Negotiations are slated to be completed by 1 January 2005. One objective of the negotiations is to make the Agreement more accessible to non-parties, in order to allow its membership to expand.

ICTSD reporting.