Brussels, 27/08/2001 (Agence Europe) - The setting in place of an effective Community system for the tracing and labelling of genetically modified organisms (GMOs), as proposed one month ago by the Commission, is necessary if European consumer confidence is to be restored with regard to products containing GMOs and, consequently, to promote trade in this kind of product. This in substance is the line of defence taken by the European Commission as it confronts Washington's demands that the EU should abandon the "restrictions" envisaged on genetically modified food.
In its edition of Monday 27 August, The International Herald Tribune reports that the US administration is putting pressure on the EU for the Commission to withdraw the obligation contained in its legislative proposal of 25 July to label all products containing GMOs, which could cost American companies $4 billion annually and compromise the launching of a new round in WTO multilateral trade talks planned for this autumn. The United States considers that the implementation of the European project would be discriminatory against American products and would run counter to the requirements of the WTO. Although it has not revealed the kind of measures that it plans to take against Europe, the Bush Administration specifies that the EU draft legislation would be detrimental to the American products compared to the European products. Under Secretary of State Alan Larson, responsible for economic affairs, mainly declared that the regulation concocted in Brussels would impose the labelling of American oil made of genetically modified soya although it would not cover European wines and cheeses based on enzymes from biotechnology. The substance of the problem is that the American crop handling system does not, in general, make any distinction between the traditional and "modified" crops - hence the considerable surcharge for the US economy if it were to bend to the new European regulation. With regard to these surcharges, the US administration recalls that 75% of soya and over 25% of maize comes from genetically modified seeds. This new transatlantic dispute could therefore exceed in magnitude that over bananas - a problem now resolved - or even that of hormone-treated beef and veal. The United States does not rule out bringing the matter before the WTO, but Mr Larson considers that, for now, it is a matter of putting pressure on European governments so that they amend the proposals under incrimination that have still to go before the European Parliament and the Council. The implementation of the Community system is not scheduled until 2003.
In response to these declarations on Monday, a European Commission spokesman pointed out that an official complaint had been filed in this connection and that "constructive dialogue with the United States has been under way for several months". Ms Gminder added that the Union representatives had clearly explained to the American side the need for sound legislation in order to restore consumer confidence. "We have the possibility of making this legislation accepted with our trading partners", she concluded.
We recall that, on 25 July this year, the Commission presented a proposal for a Community system for the tracing and labelling of GMOs and regulation of the marketing and the labelling of products intended for human or animal consumption, as well as GMO derived products (see EUROPE of 27 July 2001, page 5).