EU rules on GMOs to ignite trade war

US food manufacturers this week spoke out against new European rules on the labelling and traceability of GMOs, describing the legislation as "a brick wall blocking international trade".​

Cutting straight to the quick, John R. Cady, president and CEO of the National Food Processors Association (NFPA) claimed that the new traceability requirements "are so complex and detailed that they equate to the process for handling nuclear waste".​

Europe's Council of Ministers this week formally adopted the two European Commission proposals on genetically modified organisms which establish a tough new system to trace and label GMOs and to regulate the placing on the market and labelling of food and feed products derived from GMOs.

The controversial rules - overwhelmingly welcomed by European consumer associations and environmental groups - aim to address consumer concerns in europe over the environmental and health effects of GMOs.

Products containing more than 0.9 per cent GMO material will be clearly labelled. In addition, in a bid to tighten up traceability the food industry must - when using or handling GM products - transmit and retain information at each stage of the placing on the market.

Speaking this week, Health and Consumer Protection Commissioner David Byrne asserted: "Europe will now have a comprehensive and transparent system of authorisation and labelling that can only enhance business and consumer confidence."​

But the NFPA is not in agreement. According to the trade group, the draconian rules will be seen by consumers as a 'warning label'. The requirements ensure that these products are unlikely to enter the European market, thereby actually denying consumer access to the products of agricultural biotechnology, said Cady.

The voice of the $500 billion US food processing industry made no bones about warning Europe of the repercussions linked to the new legislation.

"This is a bad decision by the EU,"​ continued Crady. Adding that the NFPA will work with the US trade representative to ensure the World Trade Organisation "understands the problem these new requirements will pose, and request the WTO to take appropriate action to resolve this issue."​

US companies such as Monsanto and DuPont have a lot riding on European acceptance of GM products having invested billions in agricultural biotechnology. US soy exports to the EU have declined dramatically over the past five years.

In May this year the US filed a case with the WTO against the EU 'over its illegal five-year moratorium on approving agricultural biotech products'. Europe has blocked all new GM crops since 1998, but the rules on labelling and traceability cleared this week by the Council are largely recognised as a step towards lifting the moratorium. Far from appeasing US farmers and industry trade bodies, it would seem that Europe is in for a lengthy trade battle over GMOs.