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----- Original Message ----- 
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Sent: Wednesday, August 29, 2001 9:24 PM
Subject: [mobilize-globally] U.S. Challenges EU's Biotech Food Standards


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----- Original Message -----
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Subject: [Fwd: U.S. Challenges EU's Biotech Food Standards]


-------- Original Message --------
Subject: U.S. Challenges EU's Biotech Food Standards
Date: Mon, 27 Aug 2001 23:00:03 PDT
From: The Campaign <[EMAIL PROTECTED]>
To: [EMAIL PROTECTED]

News Update From The Campaign to Label Genetically
Engineered Foods
----------------------------------------------------------------------

Dear Health Freedom Fighters,

Sunday's Washington Post featured a front page story (posted
below)
titled "U.S. Challenges EU's Biotech Food Standards."

As The Campaign has reported in the past, a trade war
appears to be
developing between the United States and the European Union
over
genetically engineered foods.

The Washington Post article does a good job of discussing
this growing
controversy. However, we will also provide you with some
background
information to help you better understand these
developments.

BACKGROUND INFORMATION

In May 1998, the European Union (EU), which consists of 15
countries in
Europe, passed regulations that require mandatory labeling
of soy and
corn products. (The EU countries are: Austria, Belgium,
Denmark,
Finland, France, Germany, Greece, Italy, Ireland, Luxemburg,

Netherlands, Portugal, Spain, Sweden, and the United
Kingdom.)

The EU also enacted a moratorium in 1998 to stop any new
genetically
engineered foods (or new varieties of GE soy or corn) from
entering
these European countries.

In an attempt to remove the EU moratorium, strict new
labeling
regulations on genetically engineered foods were recently
proposed by
the 20-member European Commission. Before being implemented,
the
proposed labeling regulations will have to be approved by
the European
Parliament and the 15 member countries.

If approved, the new regulations will require labels on all
foods that
contain, or are derived from, genetically engineered
ingredients.

After the 1998 labeling requirements were passed into law,
the entire
food industry in the EU soon decided to quit using
genetically
engineered ingredients in their products. In a matter of
months,
genetically engineered foods in the EU countries were
virtually
eliminated.

The United States seemed to accept the loss of the EU market
without a
lot of opposition during the Clinton administration. But in
the past
couple years the international opposition to genetically
engineered
foods has grown.

Australia, New Zealand, Japan, South Korea, Thailand, and
recently
China, have all agreed to label genetically engineered
foods. U.S.
officials and the biotech industry are concerned that with
labels
consumers will reject these products as they did in Europe.

The acreage of genetically engineered crops planted by U.S.
farmers has
continued to grow, but the international market for these
foods has been
reduced dramatically. So a crisis is developing for
America's
agricultural biotech industry. The loss of revenues could
cost U.S.
companies $4 billion a year.

It now appears the Bush administration has decided to
aggressively fight
the international opposition to genetically engineered
foods. There have
been numerous reports of U.S. government officials telling
EU officials
that their new proposed labeling requirements may be
violating World
Trade Organization requirements.

On August 9th, U.S. Secretary of Agriculture Ann M. Veneman
and U.S.
Trade Representative Robert B. Zoellick, along with 24 U.S.
trade
organizations, sent a letter to Secretary of State Colin L.
Powell
complaining about the new proposed EU regulations for
labeling biotech
foods.

It is worth noting that Secretary of Agriculture Veneman
used to serve
on the board of directors of Calgene, a biotech company
owned by
Monsanto. Calgene was the company that brought the first
genetically
engineered crop to market, the Flavr Savr tomato.

Posted below are three articles that provide a great deal of
insight
into the international battle over genetically engineered
foods.

The first article is the Washington Post front page story.
The second
article is from Associated Press titled "EU Defends Proposed
Biotech
Law." It includes comments from a EU commission spokesperson
responding
to the Washington Post article.

The third article is from the British newspaper The Guardian
and is
titled "Global GM market starts to wilt." This special
report provides
some unique information about the world's view on
genetically engineered
crops.

These articles are somewhat long, but I think you will find
this to be
interesting and informative reading material.

Craig Winters
Executive Director
The Campaign to Label Genetically Engineered Foods

The Campaign
PO Box 55699
Seattle, WA 98155
Tel: 425-771-4049
Fax: 603-825-5841
E-mail: mailto:[EMAIL PROTECTED]
Web Site: http://www.thecampaign.org

Mission Statement: "To create a national grassroots consumer
campaign
for the purpose of lobbying Congress and the President to
pass
legislation that will require the labeling of genetically
engineered
foods in the United States."

***************************************************************

U.S. Challenges EU's Biotech Food Standards

By Alan Sipress and Marc Kaufman
Washington Post Staff Writers

Sunday, August 26, 2001; Page A01

Senior Bush administration officials are pressuring the
European Union
to abandon new restrictions on genetically modified foods
that they say
could cost U.S. companies $4 billion a year and disrupt
efforts to
launch a new round of global trade talks.

U.S. officials have repeatedly told their European
counterparts that the
regulations, which received preliminary approval last month,

discriminate against U.S. products in violation of World
Trade
Organization requirements, raising the prospect of a major
and
emotionally charged trade dispute.

The European Commission's decision to require the labeling
of
genetically engineered products reflects a European anxiety
about food
safety that is far more profound than in the United States,
the world
leader in agricultural biotechnology. This is a divide that
threatens to
further aggravate U.S. relations with Europe, already roiled
by
differences over global warming, arms control and other
trade issues.

Undersecretary of State Alan P. Larson, the State
Department's senior
diplomat assigned to economic issues, called the new
restrictions "trade
disruptive and discriminatory." He said, "It's obviously a
very serious
problem that affects a very important trade and one that's
of vital
interest to a very important constituency in the United
States, which
supports free trade."

Though U.S. officials have declined publicly to detail what
type of
punitive action the Bush administration might take against
Europe, U.S.
officials say the regulations are inconsistent with the
terms of the WTO
because they treat U.S. products less favorably than
European ones.

For instance, Larson said the European regulations would
require that
American crushed soybean oil bear a label, while European
cheeses and
wine made with biotech enzymes would not be covered. "There
are
potential WTO concerns about how it is structured now,"
Larson said.

U.S. officials have left open the possibility of bringing a
legal case
before the WTO, which, after lengthy litigation, could
eventually impose
a politically embarrassing judgment and stiff economic
penalties on
Europe. But Larson said the administration's immediate focus
is on
lobbying European governments to amend the regulations
before they take
effect. He added that the United States and Europe need to
resolve the
issue quickly so it does not become a "distraction" that
interferes with
their shared interest in launching new global trade talks as
planned
later this year.

Officials said that economic losses in the United States --
where 75
percent of soybeans and more than 25 percent of corn comes
from
genetically modified seeds -- could far exceed other
transatlantic trade
battles, such as those over bananas and growth hormones in
beef.
Resolution of the long-running banana dispute earlier this
year removed
a major irritant in American-European relations.

The dispute could also harden public opinion about
biotechnology and its
ability to transfer beneficial genes from one species into
another.
Proponents want it to be seen as a force for progress and
global
improvement, but it could become a symbol of divisiveness if
it set off
a bitter trade dispute.

The European Commission's new standards, among the most
far-reaching in
the world, call for all products made from engineered
material to bear a
label saying they contain "genetically modified organisms."
They also
require producers to document the source of all their
ingredients. Since
the U.S. crop-handling system generally does not separate
modified and
conventional crops, the new requirements could be unwieldy
and costly
for U.S. businesses.

European limitations on biotech crops already ban most U.S.
corn for
food products, estimated by U.S. officials as a $300 million
annual
loss. The new requirements, which must be approved by the
European
Parliament and Council of Ministers before taking effect by
2003, could
also make it difficult to export corn for animal feed and
soybeans.

Larson said in an interview that he has raised U.S. concerns
with
"everyone that comes through this door, every trade
minister,
agriculture minister, economy minister from Europe,"
including those
representing about eight European countries. He said a
similar message
has also been delivered by Agriculture Secretary Ann M.
Veneman and U.S.
Trade Representative Robert B. Zoellick.

President Bush, who comes from a large farm state and counts
on the
agriculture industry for political support, raised the issue
personally
with European leaders last month at the Group of Eight
meeting of
industrialized countries in Italy, according to a senior
administration
official.

Kimball Nil of the American Soybean Association said the
food industry
is pleased by the tough talk. "The Bush administration met
with EU
commissioners and very clearly laid down a marker that many
of us felt
was missing before," he said.

But European officials chafe at the pressure, saying the
administration
is trying to impose U.S. acceptance of biotech food on a
European public
that does not believe these products are safe despite
scientists'
claims. The spread of mad cow disease and other health
crises have
fueled public concern about food safety, and prominent
officials,
including Britain's Prince Charles, have been highly
critical about
biotechnology in crops.

"We are seeing an illustration of American unilateralism,"
said Tony Van
der haegen, a European Commission representative in
Washington. "There
are basic psychological differences between American
consumers and those
in Europe, where [genetically modified products] are not
accepted."

Requiring food labels is a way of offering choice to
consumers and
restoring their confidence in food, Van der haegen said. He
added that
the United States has exaggerated the potential loss to U.S.
companies,
putting the figure instead at $2.8 billion a year.

On a policy level, U.S. regulators have embraced the
position that
engineered and traditional crops are essentially equivalent,
and so
should be treated the same. There is some public -- and
congressional --
pressure to require labeling of modified foods in the United
States, but
promoters of biotechnology have fought tenaciously, and
successfully, to
resist the efforts. They argue that labels would unfairly
stigmatize the
products.

The European Union has not approved any new engineered crops
for almost
three years, and it has been under great pressure from the
United States
to begin the review process again. The new regulations allow
for biotech
crop reviews to resume, but only with the requirements that
U.S.
officials find objectionable.

In an Aug. 9 letter to Secretary of State Colin L. Powell,
Veneman and
Zoellick, 24 U.S. trade organizations said the proposed EU
guidelines on
biotechnology in agriculture are "commercially unworkable,
inconsistent
with WTO obligations and would result in billions of dollars
of lost
U.S. exports." The letter, signed by groups ranging from the
Grocery
Manufacturers of America to the American Soybean Association
and the
North American Export Grain Association, said the measure
would cause a
"serious trade impediment" by requiring labeling and tracing
of modified
foods, but not of European wines and cheeses.

The European regulations would not apply to the latter items
because the
requirements distinguish between food made from genetically
modified
material such as seeds and those produced with the
assistance of
modified material such as enzymes.

Larson wrote back this week that "I share many of your
apprehensions
regarding the proposals," and said he was working to "ensure
that any
measures [implemented by the EU] are not onerous, costly or
trade-disruptive."

Mark Mansour, a Washington attorney who represents large
food companies
and has been consulted by administration officials, has
written an
analysis urging the administration to file a case with the
WTO as soon
as possible. Mansour also recommends that the United States
withdraw
support for the international Biosafety Protocol negotiated
in Montreal,
a Clinton-era agreement that accepted some of the European
concerns
about genetically modified foods.

As the regulations now move to the European Parliament,
legislators may
tighten the restrictions further. Environmental groups are
urging them
to remove a provision that waives the labeling requirement
if the
percentage of genetically modified material in a food item
is less than
1 percent of the overall product. "The U.S. is trying to
force-feed
modified foods to the rest of the world, and it just isn't
going to
work," said Charles Margulis of Greenpeace, which has led
the
anti-biotech campaign in Europe.

U.S. troubles over biotechnology and international trade are
not limited
to the European Union. The governments of Saudi Arabia and
Sri Lanka
have proposed bans on importing genetically modified foods,
and Mexican
legislators are also discussing tough labeling laws. Larson
said the
United States is concerned that the EU biotech guidelines
could become a
model for developing countries and significantly limit the
reach of the
technology.

Advocates of biotechnology say it can be especially helpful
to poor
farmers by increasing their yields, protecting against pests
and
viruses, and allowing them to grow crops in depleted soil.
But critics
say poor farmers will never see those potential benefits
because the
technology is owned by private, multinational companies
interested
primarily in selling seeds for a profit to commercial
growers.

***************************************************************

EU Defends Proposed Biotech Law

By PAUL GEITNER
.c The Associated Press

BRUSSELS, Belgium (AP) - The European Union's head office
expressed
faith in its proposed law on genetically modified products
despite a
report that the United States might challenge it at the
World Trade
Organization.

EU Commission spokeswoman Beate Gminder said the rules
proposed last
month were ``absolutely necessary to foster consumer
confidence'' in
biotech foods, ``and therefore also trade in those
products.''

She also noted that the Commission's proposed directive is
now going to
the European Parliament and national governments in the
Council of
Ministers, where ``it will certainly see extensive questions
...
including trade-related aspects.''

In an interview published Sunday in the Washington Post,
U.S.
Undersecretary of State Alan Larson said the Bush
administration was
lobbying European governments to change the rules.

The newspaper said U.S. officials have left open the
possibility of a
case before the WTO against the EU rules, which they said
could cost
U.S. companies $4 billion a year.

Among the changes in the new proposals is a requirement that
records be
kept on genetically modified products ``from the farm to the

supermarket'' to facilitate traceability and accurate
labeling.

The United States, where 70 percent of the world's
genetically modified
crops are grown, currently does not require any labels for
products with
gene-altered ingredients. In addition, modified grains are
often mixed
with conventional crops during shipping.

Gminder said U.S. officials, including Larsen, were involved
in
consultations before the directive was approved.

``We think it's a very good law,'' she said.

The European Parliament instructed the Commission in
February to come up
with proposals that would allow for the lifting of a 1998
moratorium on
approving new GMOs in Europe - a ban imposed largely due to
public fears
in Europe over ``Frankenstein foods.''

While about 40 crop varieties are in use in North America,
the EU has
approved only 11. The EU accounts for less than 1 percent of
the 40
million metric tons of biotech crops grown annually.

AP-NY-08-27-01 1253EDT

***************************************************************

Global GM market starts to wilt
Static profits, tighter laws and consumer health doubts slow
growth of
disputed technology - except in US

Special report: GM food debate

John Vidal
Tuesday August 28, 2001
The Guardian

The global GM food bubble may have burst after almost 10
years of
exponential growth. Companies are investing less in research
than five
years ago, profits are static, countries are tightening up
labelling and
import laws, the promised new generation of crops which
could bring
health benefits is still years away, and no major new
markets are
expected to develop for some time.

Paradoxically, Guardian research has also found that the
acreage of GM
crops is still growing in the US and, at more than 109m
acres now across
the world, is 25 times what it was five years ago. The
industry,
moreover, has now convinced almost all governments and world
bodies to
back the bitterly disputed technology.

But Sergey Vasnetsov, Wall Street's leading chemical
industry analyst
with Lehman Brothers, says: "The outlook [for the GM food
industry] is
less certain than it was three years ago. The euphoria has
gone. Growth
has fallen significantly. The industry has overstated the
rate of
progress and underestimated the resistance of consumers.

"Acceptability will only come with new products but that
seems to be
something the industry cannot achieve. The crops that will
benefit
people [as opposed to farmers] are still three or four years
away. The
market is not expanding and research budgets are down 5-7%
on five years
ago. Conceptually, the value [of GM foods] has come down,"
says Mr
Vasnetsov.

Benedict Haerlin, Greenpeace International's GM analyst,
agrees: "The
wonder times are over. The promises have not materialised.
There are
still only four major crops being grown. The world market is
reducing in
terms of delivery.

Scathing


But the GM food companies are confident they can overcome
regulatory
hurdles and global opinion. World leader Monsanto, whose
seeds were
planted on more than 80m acres last year - but which has had
to slash
costs, cut back on research and fire almost 700 people - is
conducting
field trials in many developing countries and reported an
11% increase
on acreage. The global GM acreage is thought to be 17%
higher than in
2000. Most of the new plantings, however, have been in north
America.

Mr Vasnetsov is scathing of the claims made by the UN,
chemical
companies and scientists that GM crops will alleviate hunger
in
developing countries. "Let's stop pretending we face food
shortages.
There is hunger, but not food shortages. GM food is for the
rich world.
The money from GM is in developed countries. The battle is
in Europe,"
he says.

Greenpeace's Benedict Haerlin agrees. "No GM company is
going to produce
varieties for poor countries unless it sees a market," he
says.

US analysts fear that GM crops, after 10 years of plantings,
are still a
north American phenomenon, with the rest of the world
proving
increasingly cautious. The US now has 80% of all plantings,
followed by
Canada, Argentina and China. Ten other countries grow small
amounts.

Overcoming Europe's five-year-old moratorium on new
commercial plantings
is crucial for the development of the crops. EU draft laws
announced
last month would allow imports with 1% contamination of
conventional
crops by GM organisms, but while allowing new GM crops to be
grown, they
could increase to up to three miles the buffer zone between
them and
conventional ones which could put most farmers off. The
companies are
expected to lobby to relax the limits.

US growers and government fear that their 30bn food export
industry is
being undermined as countries try to substitute their
exports for those
of the US. Despite the objections of the US government and
lobbyists,
many countries are now trying to turn the screw on US
agriculture by
increasing regulatory pressure.

Thailand, the world's largest rice exporter, is bringing in
strict laws
on labelling and traceability; Algeria, a large food
importer, may ban
completely their import, manufacture or sale; Japan, which
takes 20% of
all US food exports worth $11bn a year, has imposed tough
labelling
rules on 24 product categories and new Chinese laws may
delay GM maize
for several years. In Sri Lanka, the government has come
under intense
pressure from the World Trade Organisation and business not
to reimpose
a ban on imports and growing of the crops.

Wariness


The US government and farm organisations admit that GM has
severely hit
exports. Europe, Japan, Taiwan and South Korea have largely
switched to
buying non-GM maize and soya from Brazil and China rather
than the US.
The US department of agriculture recently lowered its maize
export
forecast by 50m bushels as a result of GM's unacceptability.

Meanwhile, legal uncertainties surrounding the testing of GM
crops are
leading some European biotech and seed companies to shift
their research
to north America. "We won't be carrying out any more field
trials in
Germany for this year," said seed company Norddeutsche
Pflanzenzucht
(NPZ).

The companies say farmers are happy with the performance and

profitability of the crops, but the global wariness has
prompted even
biotech supporters to question GM. A recent survey of the
14,000 members
of the American Corn Growers' Association suggested 78%
would abandon GM
to recover lost export markets.

While animosity to growing the crops may have peaked in
Europe, consumer
support is waning in the US. An ABC poll in June found 52%
saying GM
foods were "not safe to eat," and only 35% expressing total
confidence.
A year earlier, a Gallup poll found the reverse, with 51%
seeing no
health hazard.

The hoped-for "ethical" GM crops which have been promoted by
governments
and scientists are also reported to be years away from
markets.
Subsistence farmers will not be able to benefit from
Syngenta's
much-hyped "golden rice", modified to include vitamin A for
the benefit
of people in developing countries, for at least four years
because at
present it is only viable in temperate climates.

Monsanto is preparing to introduce GM wheat within two years
but US and
Canadian farmers, who dominate world exports, are cautious.
More than
200 Canadian groups, including the National Farmers' Union
and the
Canadian Wheat Board, want the test plantings to stop,
fearing GM wheat
will damage exports.

In the past month, the UN has claimed GM crops could
significantly help
developing countries, the EU has taken the first steps to
ending its
moratorium on new plantings, Britain has sanctioned 30 more
major trials
in readiness for commercial growing, and the New Zealand
government has
strongly backed the crops.

Testing times - 25,000 trials in 40 countries

--The genetic modification of plants involves transferring
DNA from a
plant, bacterium, or even an animal, into a different plant
species

--The four main GM crops are corn (maize), cotton, soya bean
and canola

--More than 109m acres of GM crops are grown worldwide

--The main planting areas are in the US, Canada, Argentina
and China

--Since 1985, when genetically engineered plants resistant
to insects,
viruses, and bacteria were first tested, 25,000 trials have
been carried
out in more than 40 countries

--In 1995 the EU approved the importation and use of
genetically
modified soya

--The UN development programme, and all major national
scientific
bodies, believe GM crops can benefit farmers and consumers

--This year more than 30 test sites have been wholly or
partly destroyed
in Britain

--Apart from all major crops, tests have been done on most
vegetables,
as well as trees and fish.

The four types of GM crops

--Bt crops: Protected against insect damage and reduce
pesticide use.
Plants produce a protein - toxic only to certain insects -
found in the
common soil bacterium bacillus thuringiensis, or Bt

--Herbicide tolerant: Allow farmers to control weeds without
harm to the
crop

--Disease-resistant: Armed against destructive viral plant
diseases with
a "vaccine"

--Nutritionally enhanced: Foods that could offer higher
levels of
nutrients and vitamins





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