Brussels, Belgium
May 13, 2003

EuropaBio notes that four countries the United States, Canada, Egypt and Argentina have filed a WTO case (2) over the European Union's (EU) moratorium on approving agricultural biotechnology products. Nine other countries have joined as third parties in support of the case: Australia, Chile, Colombia, El Salvador, Honduras, Mexico, New Zealand, Peru and Uruguay. While it would have been preferable to resolve this issue without WTO action, the EU biotech industry understands the frustration of the EU's trading partners with some Member States which continue to look for justifications not to permit the importation of safe products of GM technology.

The EU biotech industry is also frustrated with the delays in implementing EU rules however there is at least some progress being made. The regulatory framework dealing with GM technology in the EU was bolstered when Directive 2001/18 came into force in October of 2002, updating the regulatory process of authorising and monitoring of GMOs but it is inevitable that it will take some months before dossiers for approval are reviewed and voted on. The forthcoming legislation on food, feed, traceability and labelling is expected to be completed in a matter of months and specifically aims to meet the moratorium countries' requirements.

The EU biotechnology industry has worked constructively with the EU institutions to develop a transparent and workable regulatory system for the EU that can provide European citizens with confidence in approved products. The system provides transparent and strict rules for GM products for use in food, feed, and in agricultural production.

EuropaBio looks forward to an amicable resolution of the WTO consultation based on the willingness of the Commission, the Parliament, and the Member States to expedite finalisation of the EU legislative package and the approval of new products. The industry requires workable legislation which gives choice to all those in the food chain from grower to final consumer.

EuropaBio believes that both farmers and consumers should have the right to choose what crops they want to grow and which products they want to buy. The de facto moratorium by some Member States reduces the choices of other Member States who wish to use this technology. Governments need to
implement legislation effectively so as not to disadvantage European farmers. This technology is being used by more than 5 million farmers worldwide attesting to the technology's ability to respond to a need and repeat purchases show that the technology meets farmer expectations.

Furthermore, the failure to approve products in Europe for the last five years affects the development of this technology outside the EU, including in developing countries, and impacts on the choices that these countries are making as regards agricultural production and food security.

Plant biotechnology is one of the most important innovations in agriculture in recent years, it can help farmers remain competitive and provide the countryside with environmental benefits. If this technology is cut off from farmers it will put them at a disadvantage compared to other farmers in China, US, Canada, Argentina and many other parts of the world. Companies and public institutes need a positive and dynamic climate to encourage investment in the agricultural biotechnology sector, which will
help create growth and jobs, and reverse the downward trend in plant biotechnology research in Europe.

EuropaBio, the European Association for Bioindustries, has 35 corporate members operating worldwide and 21 national biotechnology associations representing some 1200 small and medium sized enterprises involved in research and development, testing, manufacturing and distribution of
biotechnology products.

Press release from the Office of the US Trade Representative,  United States Department of Agriculture