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EU Vows to Fight US Over GMO Issue

January 10, 2003

Dow Jones Newswire

EU Vows to Fight if US Sues at WTO Over GMOs

by Matthew Newman

BRUSSELS -- The European Union Friday vowed a vigorous defense against any possible U.S. suit at the World Trade Organization challenging the E.U.'s four-year moratorium on importing genetically modified crops.

"We would fight a WTO case and we believe we would win it," said Arancha Gonzalez, an E.U. spokeswoman.

On Thursday, U.S. Trade Representative Robert Zoellick slammed the E.U. moratorium, calling it "immoral" and a "complete violation of WTO" rules.

Some U.S. officials are concerned about raising tensions with Europe and Zoellick said Washington still hasn't decided to file a WTO case. A high-profile trade dispute could backfire by strengthening anti-U.S. sentiment in Europe against GM crops and complicating U.S. diplomacy on a possible Iraq war.

The E.U. also fears an escalation. "We don't think a WTO case will move the case forward. Rather, it will freeze the process of lifting the moratorium," Gonzalez said.

The E.U. passed tough new GM labeling and traceability rules last December and the E.U. parliament will vote on them this spring. If they are approved, European fears about the potential risks of such products will be eased and could lead to a lifting of the moratorium. Some E.U. countries, including France and Italy, have refused to issue new approvals until strict GM labels are in place.

Zoellick's anger with the E.U. attitude was sparked by a row over food aid to Africa. Last fall, famine-stricken Zambia refused U.S. food aid that included genetically-modified corn. Zoellick now accuses several European countries of making economic aid to developing countries contingent on whether they bar GM crops.

The Europeans rejected the charge. "It's a bit far fetched to link the GM debate with hunger in Africa," Gonzalez said. The U.S. gave African countries an unfair choice between importing GM seeds that could contaminate their domestic crops or face starvation, she said.

A possible solution is to provide milled grain, which avoids any fears of contamination into environment, Gonzalez said.

Drought-stricken Malawi, Lesotho, Mozambique, Swaziland and Zimbabwe say they will only accept the grain provided it is milled to prevent it from being planted, while Zambia has imposed an outright ban.

The U.S. has said milling doubles the cost of the grain, meaning less food for fewer people.

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