EU may tread fine line on GMOs in WTO talks - aide October 22, 1999 U.S. rethinks approach to biotech food regulation WASHINGTON (Reuters) - Reuters [BR] via NewsEdge Corporation : The European Union will seek to ''clarify'' a key food safety agreement when dealing with the thorny issue of genetically modified (GM) crops in upcoming World Trade Organization talks, an EU aide said on Thursday. John Richardson, deputy head of the European Commission's delegation in Washington, said he doubted the EU would call for the outright reopening of the landmark food safety agreement that was part of the 1994 Uruguay Round trade pact. ``Reopening? I think we'd call it clarification,'' Richardson said in remarks to a trade group. ``The big issue is, do you build on exactly what's there or do you try to change what's there? And I say 'we keep what we have and we build on it and we clarify it'.'' The United States opposes reopening the Sanitary and Phytosanitary (SPS) Agreement, which requires food safety and animal and plant health rules to be based on science. The SPS pact provided the legal basis for the United States to successfully challenge the EU's 10-year-old ban on beef from cattle raised with artificial growth hormones. In that case, the WTO ruled in favor of the United States and Canada and later authorized both countries to levy punitive duties on about $125 million worth of European goods after the EU refused to drop its ban. Over the past two years, the United States has lost about $200 million of corn sales to Europe because of delays in the EU approval process for genetically modified crops. Because of EU consumer concerns that have paralyzed the EU approval process, six GM varieties that account for a fraction of U.S. corn production remain banned in Europe. That has had a chilling effect on all U.S. corn exports to the EU for fear that a small amount of an unapproved variety could show up in a cargo and be rejected by EU officials. US CRITICIZES CANADA GM PROPOSAL The United States has proposed four criteria for rules governing the approval of GM crops, but has not specified how it wants the issue raised in the WTO talks. Tim Galvin, administrator of the U.S. Agriculture Department's Foreign Agricultural Service, told the trade audience a Canadian proposal to form a WTO working group on GM food appeared too broad to achieve much progress. The United States will push for rules to require countries to establish a GM approval systems that are transparent, predictable, timely and science-based, Galvin said. As the talks progress, the United States may offer more detailed suggestions, such as how long countries can take to make a decision on GM approvals, he said. Recent remarks by new European Commission President Romano Prodi have raised U.S. hopes for progress on biotechnology food issues. In a speech widely read by U.S. agriculture and trade officials, Prodi suggested creation of an EU-wide independent food regulatory agency that would work similarly to U.S. Food and Drug Administration, Galvin said. That could help restore EU consumer confidence, which has been badly shaken by a series of food scandals in the 1990s, and increase acceptance of GM crops in Europe, he said. The United States welcomed Prodi's statement that the EU needs to better define what it means by the ``precautionary principle,'' a concept the EU has used to justify its ban on beef produced with artificial growth hormones. But even with an independent regulatory agency, the EU still might take a different view on GM crops than the United States, Richardson said. European consumers view scientists as ``naive'' about potential risks and expect their political institutions to err on the side of caution, he said. EU consumers will learn to accept GM food only if they see some benefit, such as lower prices or higher nutritional content, Richardson said. ``I suspect it may take some time. It may take a generation,'' he said. REUTERS@ [Copyright 1999, Reuters]