The National Corn Growers Association (NCGA) called today's European Parliament vote against biotech crops disappointing and a step in the wrong direction. The new law establishes strict labeling laws on food derived from biotechnology and stringent traceability regulations.

"The new legislation passed by the European Parliament will only further hinder agricultural trade between the United States and Europe," said NCGA President Fred Yoder. "The vote today does not give us confidence that the European Union (EU) is serious about trade nor that the de facto moratorium on biotechnology will be lifted anytime soon."

Yoder said the new mandatory labeling law will be too costly for growers and only further prohibit exportation of biotech crops to European countries.

The legislation passed today, was first introduced in 2001 and is the result of demands by EU member states fearful of biotechnology. The legislation calls for strict rules for both the labeling of food products for the end consumer and for the traceability of genetically modified organizations (GMOs) for food and feed. The regulations require labeling of products that contain 0.9 percent or more of GMOs adopted in the EU and 0.5 percent for unapproved varieties.

While the labeling and traceability legislation meets one of the critical demands of member states in order to lift the de facto ban on products derived from biotechnology, it is unclear whether those countries will do so. NCGA has pushed for years to abolish the moratorium and was pleased this past May when the Bush administration filed a case in the World Trade Organization (WTO) challenging the legality of the EU's actions.

"Biotechnology is an integral part of feeding the world in the future and raising the standard of living in developing countries," continued Yoder. "We will continue to push toward that end."

It is estimated the ban has cost growers $300 million per year in trade exports.