U.S. pushes ahead with EU GM case; still forcing Frankenfoods on Europe

[Guest guest]

> U.S. pushes ahead with EU GM case

>

> Friday, August 8, 2003 Posted: 4:49 AM EDT (0849 GMT)

>

> WASHINGTON (AP) -- The Bush administration has requested formation of a

> World Trade Organization dispute panel as the United States pressed ahead

> with a case against the European Union over genetically modified food.

>

> The formal request for a WTO hearing panel had been expected after the

> United States and its partners in the dispute -- Canada and Argentina --

> had been unable in June to narrow their differences with the EU over a

> European moratorium on importation of genetically modified crops.

>

> U.S. Trade Representative Robert Zoellick said the administration had no

> choice but to proceed with a WTO case in an effort to force the 15-nation

> European Union to accept genetically modified crops produced in the United

> States and other countries.

>

> " This trade barrier harms farmers and consumers around the world by

denying

> them the benefits of productive, nutritious and environmentally friendly

> biotech products, " Zoellick said in a statement Thursday.

>

> The EU imposed the moratorium because of concerns about food safety, which

> the United States contends are not supported by various scientific studies

> showing that genetically modified food poses no risks to humans.

>

> The EU recently moved to implement a system that would allow consumers to

> buy genetically modified food that had been clearly labeled. However, U.S.

> farm groups object that the labeling will be cumbersome to implement and

is

> not needed since the food is safe.

>

> Biotech crops, including corn and soybeans genetically modified to resist

> insects or disease, have been widely grown in the United States for years.

> U.S. farmers say the EU moratorium has cost them $300 million in lost

sales

> annually of bioengineered corn.

>

> The United States first gave notice that it planned to bring a WTO case

> against the EU in May. But under WTO rules, any country filing a trade

> complaint must first engage in informal consultations before making a

> request for a WTO panel to hear the dispute. The request for formation of

a

> panel triggers a process in which both sides will file briefs and hold

oral

> arguments before the WTO panel rules on the issue.

>

> Since the losing side has the right to appeal, the entire process usually

> takes about 18 months. If the Bush administration prevails, the EU would

> either have to allow imports of the modified crops or pay compensation to

> the United States. Barring either of those options, the United States and

> the other countries would be allowed to impose trade sanctions equal to

the

> amount of sales lost because of the moratorium.

>

> " We have been extremely patient with the Europeans for almost five years, "

> Agriculture Secretary Ann Veneman said Thursday. " We have had exhaustive

> discussions with the Europeans and it is now time to let the dispute

> settlement process work. "

>

> The battle over genetically modified crops is just one of several

> high-profile trade disputes currently roiling U.S.-EU relations. Congress

> is currently struggling to revamp a $4 billion tax break received by

> thousands of U.S. companies after the EU won a WTO case that found the tax

> relief represented an illegal export subsidy.

>

> http://www.cnn.com/2003/US/08/08/us.europe.gm.ap/index.html

>