Biotech Crops Backed by WTO Ruling

News Date February 13, 2006

        The World Trade Organization (WTO) ruled last week that a European moratorium on genetically engineered crops--put in place in 1998--violates international trade rules. The ruling is set to go into effect later this year.
        The WTO ruling is in favor of the United States, Canada and Argentina's position on a large majority of the 25 crops under dispute, while it also issued a mixed ruling on a few crops. Scientific opinion in the United States and most countries worldwide, including regulators at the European Food Safety Authority, concurs that biotech crops that are currently on the market are safe to eat and pose minor environmental risks. The ruling appears to validate this position.
        The actual effect of the ruling, however, remains unknown. Reluctance to purchase food made from genetically engineered crops appears to remain high among European consumers. Some grocery store chains in Europe do not stock products containing genetically engineered ingredients, based on the belief that European consumers do not want food products made with genetically engineered ingredients. In addition, European consumers have traditionally reacted negatively to attempts by US firms to push for acceptance of genetically engineered crops.
        This situation may not be easy to overcome. The Europeans have had several food-safety scares over the past several years that have significantly diminished their trust of regulators and scientists--incidents from BSE in cattle and vCJD in humans, foot-and-mouth disease and dioxin contaminated chickens--and, while none of these events have anything to do with biotechnology, all have made European consumers weary of authoritarian decisions made on the behalf of consumers.
        Another hurdle also seems to exist within the European market. Foods produced for the European market that contain genetically engineered ingredients would have to be labeled as such. The United States government and U.S. biotechnology industry do not support this policy, but it hasn't been challenged in the WTO--at least not yet.
        This ruling is welcomed by the biotech industry. And it certainly is a symbolic victory for U.S., Canadian, and Argentinean farmers and agricultural companies. If this ruling leads to a softening of the anti-biotechnology sentiment in Europe, it will also be a significant benefit to the long-term horizon of agricultural biotechnology. (Contact: Bob Ehart or Jennifer Yezak)