[Gen-Streitfall] Fw: US seeks a Billion Pounds from Europe over GM ban

[Martin Sundermann]

GM WATCH daily
http://www.gmwatch.org
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*US seeks GBP1bn from Europe over GM ban
*Farming ministers get caught in the maize
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http://www.guardian.co.uk/gmdebate/Story/0,2763,1204094,00.html
US seeks GBP1bn from Europe over GM ban
Paul Brown, environment correspondent
Tuesday April 27, 2004
The Guardian

The US has demanded that the EU abandon its ban on the growing of
genetically modified crops and pay at least $1.8bn (GBP1bn) in compensation
for loss of exports over the past six years.

The challenge is outlined in papers filed to the World Trade Organisation
that have been seen by the Guardian.

The WTO is now facing the biggest case in its history, one that could spark
a damaging trade war between the US and Europe and split the international
community.

Although the US announced it intended launching the case last year, many
believed it was bluffing and trying to bully the EU into giving way on the
issue of unfettered trade in GM.

But the papers, which were sent to the WTO last week, accuse the EU of
imposing a moratorium on GM products in 1998 without any scientific evidence
and in defiance of WTO free trade rules. The EU has until the end of May to
reply before a WTO panel meets in June to adjudicate.

If it finds in favour of the US, the body will decide what trade sanctions
can be imposed to   force Europe to fall in line. The US has said it has
lost $300m a year as a result of lost maize imports and would expect
sanctions against the EU to help recoup the sums.

The affair has worldwide significance because if the US can force the EU
into submission, then no country will be able to keep GM out without facing
trade sanctions. But there is strong consumer resistance to GM in Europe and
several countries have introduced rules banning imports of individual GMs,
either for growing or in food.

These countries, Austria, France, Luxembourg, Germany, Italy and Greece, are
all cited by the US in the case presented to the WTO.

In its submission it says that none of these bans can be legal. This is
probably the strongest part of the US case because the trade rules allow
countries to ban products on health or environmental grounds but they need
to provide evidence.

The papers say that the EU "can present no scientific basis for a
moratorium" and that the "product specific bans ... are not based on science
and are thus inconsistent" with Europe's obligations under WTO agreements.

Britain has sought to avoid these trade sanctions by supporting the
introduction of GMs at every opportunity and saying it is treating the
growing of crops on a case-by-case basis. This led the government this year
to ban the growing of GM oilseed rape and sugar beet on environmental
grounds but to permit the growing of GM maize under strict conditions.

The case brought to the WTO will not be affected by the meeting of EU
agriculture ministers yesterday which ended with a likely lifting of a ban
on one specific variety of GM maize.

In its defence to the American action, the EU can argue that the effective
moratorium of five years in making any decision on the future of crops was
to allow time for crop trials to test the effect on the European
environment.

WTO officials are aware that imposing draconian penalties on Europe for
adhering to the overwhelming wishes of its people is likely to make it even
more unpopular.

On the other hand, the US is determined to press the case and even if this
fails it is set to bring a second case to prevent GM foods being labelled
and traceability of crops being mandatory.

Both these elements became EU law this month and are likely to form a second
case to the WTO as a "restraint" of trade if victory is not total in round
one.

The looming WTO sanctions place increasing pressure on ministers to show
willing by allowing some crops but do not remove the objections to the EU
stance from across the Atlantic.

One of the key issues will be the attitude of the wider world. According to
the US, Australia, China, Chile, Colombia, El Salvador, Honduras, New
Zealand, Norway, Thailand and Uruguay have an interest in the case. But
exactly what these countries will say to the WTO is unclear.

Sue Mayer of Genewatch said: "This is politically a nightmare for the WTO.
Does it accept that the EU has the right to listen to the will of its
peoples and be very cautious about the way it introduces GM - including
spending five years completely overhauling its regulatory processes, or does
it give into a technical argument from the US that rides roughshod over the
wishes of millions of Europeans?

"It is anyone's guess what the consequences might be."
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Farming ministers get caught in the maize
Ian Black in Brussels
Tuesday April 27, 2004
The Guardian

Europe may soon be stocking its first genetically modified food in six
years, ending a moratorium that has kept new biotech crops and products out
of the EU since 1998.

Canned maize is likely to be approved for sale within weeks because of the
failure yesterday of EU governments to resolve the controversial issue.

The inability of agriculture ministers to overcome their deadlock at talks
in Luxembourg means the European commission now has the authority to decide
what to do, and the indications are that it will approve the sale of a
variety of maize.

Britain has called for the ban to be lifted and has been supported by Italy,
the Netherlands, Ireland, Sweden and Finland and opposed by France,
Portugal, Austria, Luxembourg, Greece and Denmark. Spain, Belgium and
Germany abstained.

There were angry warnings yesterday about potential damage to the
environment and human health.

Eric Gall of Greenpeace warned: "Today's decision is a slap in the face for
European consumers and we are not going to let it stay hushed up behind
closed doors.

"Our governments are being asked to wave through a highly controversial GMO
under pressure from the European commission and biotech firms supported by
the US government."

The development will be welcomed by the US, which has challenged EU biotech
policy at the WTO, fuelling wider transatlantic tensions.

The BT11 corn variety, manufactured by the Swiss firm Syngenta, has been
genetically modified to be insect and herbicide resistant.

The commission's proposal to authorise it concerns only consumption of the
corn - sold in the US as sweetcorn and popcorn - and not its cultivation.

But it is the first of 34 applications to start working its way through a
new approval process since governments enacted strict labelling and
traceability rules for products with GM ingredients last year.

Biotech industries insist GM food makes for cheaper and greener farming.
Opinion polls show 70% of the European public do not want it, while 94% want
to be able to choose whether or not they eat it.

Anti-GM activists demonstrated outside the council of ministers building in
Luxembourg.

Geert Ritsma from Friends of the Earth said: "There is clearly no scientific
or political consensus on the safety of this genetically modified maize.

"The commission now has a choice. It can force the GM maize into the
European market, knowing that there are unanswered questions about its
safety, or it can reject it outright.

"It is time that they put the safety of the public before the commercial
concerns of the biotechnology industry.