<http://www.washingtonpost.com/wp-dyn/content/article/2006/02/07/AR2006020701184.html>

WTO Ruling Backs Biotech Crops
European Ban, Challenged by U.S and Allies, Violates Trade
Regulations, Panel Says

By Justin Gillis and Paul Blustein
Washington Post Staff Writers
Wednesday, February 8, 2006; D01

The World Trade Organization ruled yesterday that a six-year European
ban on genetically engineered crops violates international trade
rules, according to U.S. sources familiar with the ruling.

The widely expected ruling, though it will not be final until later
this year, appeared to be a symbolic victory for farmers and
agricultural companies in the United States, Canada and Argentina. The
three countries had challenged Europe's anti-biotechnology stance in
the world trade body in Geneva.

The sources, who spoke on the condition of anonymity because the
finding is preliminary and confidential, said a panel at the trade
body issued its decision late yesterday, ruling in favor of the three
countries on a large majority of the 25 crops under dispute in the
case while issuing mixed rulings on a few crops. The panel also ruled
in favor of the three countries in challenging national bans on
specific biotech crops issued by Austria, France, Germany, Greece,
Italy and Luxembourg.

The ruling was welcomed by pro-biotechnology groups in the United
States, which had urged the Bush administration to file the case in
2003. Farm groups and biotech advocates are hoping the ruling will
soften European resistance to the crops and, even more important to
them, slow the spread of anti-biotech sentiment around the world.

"The decision was never really in doubt, but its global impact could
be huge," Gregory Conko, an analyst at the Competitive Enterprise
Institute in Washington, said in a written statement. "With the voice
of the world community now clearly on the record, we hope the
Europeans will quickly dismantle their bans and let science-based
policy and consumer freedom prevail."

How much practical effect the trade ruling will have remains to be
seen, though, as resistance to gene-altered crops remains high among
European consumers. Most European grocery chains refuse to stock
products made with genetically engineered ingredients. If European
manufacturers did produce foods with such ingredients, they would have
to be specially labeled, a policy that the United States condemns but
hasn't yet challenged in the trade body.

Past U.S. attempts to push biotech crops have provoked intense
backlash by European consumers, and some anti-biotech groups predicted
that the same thing would happen again as they assailed yesterday's
ruling and the trade case that led to it. Lori Wallach, director of
Global Trade Watch in Washington, part of a network of consumer groups
founded by Ralph Nader, denounced the WTO panel's application of
"retrograde rules" in an attempt "to force Frankenfoods on the rest of
the world regardless of what consumers and their elected
representatives say."

Biotech crops first came to market in the United States in the
mid-1990s. The large majority of those developed so far have been
commercial failures, but a few developed by Monsanto Co., Syngenta AG
and other big agricultural firms have been runaway successes. They
include gene-altered varieties of corn, soybeans, cotton and canola.
Genes from other species have been inserted into these crops to allow
them to better resist weeds and insects. Some of the crops, notably
cotton, require substantially less chemical treatment and are seen by
their backers as having environmental benefits.

An overwhelming body of scientific opinion -- including regulators at
the European Food Safety Authority and scientific institutes in most
European countries -- holds that the crops are safe to eat and pose
only minor environmental risks. But European consumers were burned by
food-safety scandals in the 1990s involving dioxin-laced chickens,
beef capable of causing a fatal brain disease, and other disasters in
which they were initially assured that the foods were safe. Their
trust in the opinion of European, much less American, scientists on
such matters is low.

Controversy over the U.S.-led movement toward planting biotech crops
exploded in Europe in 1998. Several crops had been approved by then
and the United States still sells tons of such crops to Europe every
year, but the European Union stalled new approvals for six years, from
1998 to 2004. Six countries issued national bans even on crops that
had already received Europe-wide approval.

It was those actions that the United States and its allies challenged,
citing WTO rules that say new products must be considered
expeditiously and can be banned only on sound scientific grounds.

European regulators contend that even if the rules the United States
challenged amounted to an illegal moratorium, the European ban was
effectively lifted by a stringent new regulatory framework that took
effect in 2004. The trade panel "has recognized that the alleged
moratorium has ceased to exist," a European Commission official said
last night. "Our sense is, it's a mixed bag. In some respects, the
panel is upholding our positions."

The United States acknowledges that Europe, under the 2004 rules,
appears to have lifted its moratorium, at least technically, and is
now moving forward in considering biotech crops. But the United States
contends that the process is still too slow and the regulatory
standards are unreasonable given that the crops, which Europeans refer
to as genetically modified organisms, or GMOs, pose few risks.

"The U.S. appears not to like the E.U. authorization regime, which it
considers to be too stringent, simply because it takes longer to
approve a GMO in Europe than in the U.S.." the European Union said in
a briefing document. "The U.S. appears to believe that GMOs that are
considered to be safe in the U.S. should be de facto deemed to be safe
for the rest of the world."

In practice, Spain is the only European country growing any
significant amounts of biotech crops. Virtually no foods containing
such ingredients appear on European grocery shelves, and some
applications to allow such crops have been pending in Europe for a
decade.

"When you have products that are still languishing from the mid-1990s,
obviously we think there's a problem that has to be addressed," a U.S.
trade official said late yesterday.

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