Fwd: European Union bans imported US corn feed

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News Update From The Campaign

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Dear News Update Subscribers,

 

A biotech contamination scandal we reported on nearly one month ago

continues to grow and now threatens to be " an enormous economic loss " to the

United States.

 

Swiss biotechnology company Syngenta has admitted that between 2001 and 2004

hundreds of tons of genetically engineered Bt10 corn never approved for

human consumption were shipped to the United States.

 

While the U.S. is attempting to downplay the potential danger of this

unapproved corn, the European Union (EU) apparently does not share that

level of confidence.

 

On Friday the EU voted to ban all imports of corn feed from the U.S. unless

the shipments are accompanied with an analytical report from an accredited

lab that guarantees the contents do not include any Bt10 corn.

 

While Syngenta is going to pay a $375,000 fine to the United States for

their error, the EU ban could cost the U.S. up to $450 million a year in

lost revenues from export shipments of corn gluten feed.

 

Posted below are three articles. The first one is from Associated Press

titled " E.U. Votes Ban on U.S. Corn Gluten. "

 

The other two articles are from the German web site SPIEGEL ONLINE. The

second article posted below is titled " Stalking Genetically Modified Corn. "

It provides some good insights into U.S. efforts to stop the EU ban.

 

The third article is an interview with the German Consumer Protection

Minister titled " Unbelievable Sloppiness! " I found this interview to be

particularly interesting.

 

This latest scandal and economic lost should cause more U.S. farmers to

question the logic of growing genetically engineered crops.

 

Craig Winters

President

The Campaign

PO Box 55699

Seattle, WA 98155

Tel: 425-771-4049

E-mail: label

Web Site: http://www.thecampaign.org

 

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E.U. Votes Ban on U.S. Corn Gluten

 

By Raf Casert Associated Press Saturday, April 16, 2005

 

BRUSSELS, April 15 -- European Union nations voted Friday to ban U.S.

shipments of suspect corn gluten animal feed unless they are assured that

the imports are free of unauthorized genetically modified corn.

 

The vote could affect millions of dollars' worth of corn gluten exports. The

dispute centers on a batch of Bt10 genetically modified corn that Swiss

agrochemicals company Syngenta AG inadvertently sold in the United States

and exported to Europe without approval.

 

" This is a targeted measure which is necessary to uphold E.U. law, maintain

consumer confidence and ensure that the unauthorized GMO Bt10 cannot enter

the E.U. Imports of maize products which are certified as free of Bt10 will

be able to continue, " said E.U. Health and Consumer Protection Commissioner

Markos Kyprianou.

 

The ban will effectively shut out all imports of U.S. corn gluten, since

there is currently no effective way of testing for Bt10, which has not been

approved by U.S. or European regulators. E.U. spokesman Philip Tod said

Syngenta was working to develop and validate such a test, but they could not

say when it would be ready for use.

 

Michael Mack, chief operating officer of Syngenta Seeds, said it would

quickly have a workable test for the E.U.

 

" We will make operational within a matter of days a valid test method to

detect for Bt10, " Mack said. Such a test would still need further approval

from E.U. authorities. It was not immediately clear how long such approval

would take.

 

U.S. shipments of corn gluten feed to the E.U. totaled 347 million euros

($450 million) last year.

 

The United States said the ban was exaggerated.

 

" We view the E.U.'s decision to impose a certification requirement on U.S.

corn gluten due to the possible, low-level presence of Bt10 corn to be an

overreaction, " said Edward Kemp, spokesman for the U.S. mission to the E.U.

 

" U.S. regulatory authorities have determined there are no hazards to health,

safety or the environment related to Bt10, " Kemp said. " There is no reason

to expect any negative impact from the small amounts of Bt10 corn that may

have entered the E.U. "

 

The ban is to come into force early next week, pending approval by the

E.U.'s head office.

 

Environmental campaigners welcomed the move. " Europe now has a de facto ban

on the import of many U.S. animal feeds, " said Friends of the Earth

spokesman Adrian Bebb.

 

However, Greenpeace said stricter controls are needed to prevent more cases

of unauthorized biotech imports.

 

" Europe is currently helpless to defend itself from contamination by GMOs

that are suspected to harm human health and the environment, " said Christoph

Then, genetic engineering expert for the group.

 

" As long as E.U. authorities have no means to test imports for all the GMOs

being released in the U.S. and elsewhere, it must say 'no entry' to the E.U.

for any food, feed or seeds that are at risk of contamination, " he said.

 

The E.U. said it is in continuous contact with U.S. authorities on the

issue, but its decision to ban suspect corn gluten imports further strains

trans-Atlantic trade relations.

 

Syngenta said last week it has reached a settlement with the U.S. government

over the inadvertent sale to farmers of Bt10.

 

The company said in a written statement that under the settlement reached

with U.S. authorities, it would pay a fine of $375,000 and teach its

employees the importance of complying with all rules.

 

However, the E.U. has been annoyed that U.S. authorities allowed the export

of Bt10 to Europe after it was mixed up with an authorized biotech Syngenta

maize labeled Bt11.

 

About 1,000 tons of animal feed containing the corn are thought to have

entered the E.U. since 2001. The E.U.'s head office earlier had said some

food products, including flour and oil may also have been imported, but its

statement Friday said that, " according to current information from the U.S.

authorities and the European food industry, food products in the E.U. are

not affected. "

 

Nevertheless, the case has underscored European concerns about biotech

foods, coming shortly after the E.U. relaxed restrictions on genetically

modified organisms.

 

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Stalking Genetically Modified Corn

 

By Wolfgang Reuter

 

SPIEGEL ONLINE April 18, 2005, 03:11 PM

 

Since last Friday, the EU has banned the import of US corn feed. The new

embargo has further strained a trade relationship already tense over

genetically modified food, Airbus subsidies, and the weapons embargo against

China.

 

In a state of agitation, United States economics officer Robert Cekuta

invited his German counterpart, Rainer Wend, to a meeting at the embassy in

Berlin last week. It was an unusual move, but Cekuta was extremely worried.

The Germans, he complained to Wend -- who is the chairman of economics

committee in the German parliament, the Bundestag, and a trusted advisor to

Economics Minister Wolfgang Clement -- worked behind the scenes on a

European import ban on corn from the US. Cekuta explained to Wend that his

country now faces " an enormous economic loss, " and left no doubt that the

step could strain relations between the EU and the US enormously.

 

Towards the close of last week, other US diplomats also tried once more to

avoid the threatened embargo. According to a source at the Consumer

Protection Ministry, " they called regularly every half hour. " Even EU

authorities were in constant contact with US envoys in Brussels. But the

telephone and backroom diplomacy didn't help. On Friday, April 15, the

European Commission decided against the interests of the superpower -- and

put the ban on some imports of corn feed into effect.

 

From now on, the EU will require an analytical report from an accredited lab

for all corn imports from the US. The report must unequivocally guarantee

that the contents do not include any Bt10 corn, a genetically modified corn

variant from the Swiss company Syngenta. The plant has a gene that makes it

resistant to the antibiotic Ampicillin -- and it is not certified in either

the US or Europe. The fear is that if humans consume animals that have been

fed with the corn, they could develop immunities to antibiotics.

 

Between 2001 and 2004, Syngenta released about 700 tons of the illegal seeds

into the US market by mistake, enough to produce about 150,000 tons of corn.

In the US, the exact source of an agricultural product can't be traced. A

certificate from the producers stating that any given shipment doesn't

contain Bt10 is thus simply not possible.

 

Green environmental politicians, led by Consumer Protection Minister Renate

Kuenast, feel that this confirms their skepticism over genetic engineering

and are up in arms about what Kuenast calls the " unbelievable sloppiness " of

mixing genetically modified corn in with other variants (see interview

below).

 

Chief among the products hit by the quasi-embargo is corn gluten feed, of

which approximately 4 million tons are sent to the EU every year. The sales

loss might amount to nearly $350 million. Other countries, including Japan,

are now considering whether they will follow the draconian EU measures as

well.

 

In addition to the ban on feed, the US faces recalls, actions for liability

as well as enormous damage to the reputation of US corn. A similar accident

with Starlink brand genetic corn cost the US economy over a billion dollars

in 2001. The subsequent costs could be much higher this time, especially if

until-now lethargic US consumers begin to question the safety of genetically

modified varieties of grain.

 

The nonchalant behavior of the Americans infuriated the environmental

protection authorities in Brussels and Berlin more than anything else. The

US Department of Agriculture knew about the illegal Bt10-infused corn since

December 2004. Officials remained silent though, until the science magazine

Nature reported the incident at the end of March.

 

On the same day, Stan Cohen of the US Embassy informed EU authorities in

Brussels about the Bt10, where he played down the incident consciously. The

still upbeat Cohen wrote at the time that he hoped " the recent report of a

technical breach of US laws won't lead to a disturbance of US feed imports

to the EU. "

 

A Failed Compromise

 

The efforts of the Economics Ministry to reach a compromise on corn imports

fell apart last Thursday. The specialists from the various EU member-states

had already met on Wednesday and established the EU line, unanimously

pushing for the corn feed import ban. Even the office of German Chancellor

Gerhard Schroeder, despite all threats to the contrary, in the end stood

behind the ban.

 

Since the US produces approximately 300 million tons of corn annually, with

a sales value of over $30 billion, Washington is accordingly alarmed over

the ban. In the Economics Ministry in Berlin, high-ranking officials

therefore fear a new trade war with the US. Certainly, the current issues

between the two trade partners are already enough to put a lot of strain on

their relationship:

 

* The US wants to prevent the planned French subsidies of approximately €1

billion for the Airbus A350 aircraft. They have threatened proceedings

before the World Trade Organization.

 

* The US has already initiated proceedings against the rigid rules of the

EU concerning genetically modified food. Their complaint is currently at the

arbitral tribunal of the WTO.

 

* The Americans feel the current considerations to waive the weapons

embargo against China are a provocation.

 

The tensions all have a long history. Boeing head Harry Stonecipher

complained a few months ago during his visit to Germany that his company has

" now collected two years of data " proving that Airbus has violated the

subsidy agreement that the EU and the US signed in 1992. Stonecipher has

meanwhile been sacked, but the rumblings about the subsidies continue. And

Pfizer head Hank McKinnell, speaking during the World Economic Forum in

Davos in February, said this of Germany's price limits on medicine: " You

give preference to your own companies, " and he brought the issue up with

Federal Chancellor Gerhard Schroeder as well.

 

US Republican Senator Richard Lugar openly warned the Europeans a few weeks

ago about " dramatic consequences " should American soldiers ever be killed by

Chinese equipped with European weapons. In the worst case scenario, Congress

could ban the export of US high-tech equipment to the EU.

 

" The situation is markedly tense, " is how one government official described

the current state of affairs. " Everyone is waiting for what stage of

escalation is going to come next. "

 

Until the ban, the threats on both sides confined themselves to pithy

remarks. Escalation of commercial disputes has always been prevented so far

between the two trade partners, even if only at the last minute. But not

this time. " Though whether the Europeans did themselves a favor in adopting

this hard stance, " says Wend, " is extremely questionable, in view of the

already-strained relationship. "

 

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German Consumer Protection Minister: " Unbelievable Sloppiness! "

 

DER SPIEGEL 16/2005 April 18, 2005

 

Renate Kuenast, Germany's consumer protection minister, says Europe had no

choice but to ban genetically modified corn from the United States because

American farmers have no system in place for labeling GMOs and tracing them

back to their producers.

 

SPIEGEL: Ms. Kuenast, last Friday the European Union decided that no

genetically modified corn from the US can enter Europe anymore. What about

the ships that are anchoring in front of Rotterdam? Can they still be

unloaded?

 

Kuenast: No. Nobody will accept their cargo right now. It's about setting a

precedence. The action is the only possible way of dealing with an

unbelievable sloppiness -- the mixing of different genetically modified corn

families. The so-called Bt10 corn from the US, with its resistance against

the antibiotic Ampicillin is neither permitted in the US nor in Europe. The

EU has not banned all US corn imports. It is merely demanding proof that the

imported corn products do not include any Bt10.

 

SPIEGEL: ... which the Americans are unable to provide.

 

Kuenast: That's a problem. In the US, unlike Europe, genetically-modified

food isn't labelled and it can't be traced back to the producer. This

deficiency is a stumbling block in cases like this. There is a lack of

transparency.

 

SPIEGEL: US agricultural corporations are now threatening to sue for

billions in damages. Isn't the measure excessive?

 

Kuenast: The Europeans, and especially we Germans, have also learned out

lesson. Think of the BSE (mad cow disease) scandal or foot-and-mouth

disease. They cost farmers and the EU billions. And as a consequence we

introduced transparent rules both in Berlin and Brussels that are easy to

monitor. Ever since, consumer protection has had top priority.

 

SPIEGEL: But couldn't it be that you want to force the world to adopt your

rigid position on agricultural genetic engineering. According to estimates

of the German Economics Ministry, this position comes at the expense of both

know-how and jobs.

 

Kuenast: It's quite the contrary. Organic farming has already created

150,000 jobs in Germany alone. A study by Ernst & Young showed that there

are only 2,000 jobs in the sector of agricultural genetic engineering. And

our clear-cut requirements -- security, labeling, and traceability -- have

already created an economic advantage, especially in the export sector.

Throughout the world, consumers are weary of genetically modified products.

Producers know this. For many, abstaining from these products is already

paying off.

 

SPIEGEL: The US are going to fight the Brussels decision. What do you think

the outcome will be?

 

Kuenast: I do acknowledge that the decision is a challenge for the US. But I

do not believe that a solution lies in imposing further trade restrictions.

 

SPIEGEL: US diplomats have indirectly threatened in recent days and weeks

that there could be an escalating trade war.

 

Kuenast: I would not phrase it that way.

 

SPIEGEL: Then how would you phrase it?

 

Kuenast: The Americans were very committed on the issue. They wanted to

change our mind, but, as you can see, without success.

 

SPIEGEL: So you expect the US to follow Germany's fixation with the

environment?

 

Kuenast: Rubbish. To begin with, this is a European measure, not a German

one. And US corn exporters have to comply with EU rules just as European

exporters have to comply with US rules. But I do believe that America will

start discussing whether the current lax position on genetically modified

foods is still maintainable.

 

 

 

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