EU loses GM foods ruling

The WTO has ruled that the EU broke international trade rules by stopping imports of genetically modified foods.  The preliminary judgment by a World Trade Organization panel concluded that the European Union had an effective ban on biotech foods for six years from 1998, said the officials.

The report sided with a legal complaint brought by the United States, Canada and Argentina over an EU moratorium on approval of new biotech foods, the officials said. The panel ruled that individual bans in six EU member states — Austria, France, Germany, Greece, Italy and Luxembourg — violated international trade rules.

The news was immediately welcomed by US farmers and the biotechnology industry, but castigated by environmental and consumer groups who charged the ruling was a blatant example of international trade rules running roughshod over democratic decisions aimed at protecting consumer health and safety.

The US, along with Canada and Argentina, launched the case in 2003 hoping that a favourable ruling by the WTO would prevent European-style restrictions on GM foods from spreading to Africa, China and other parts of the world. “One of the reasons we brought this case was because of the chilling effect the EU moratorium has had on the adoption of biotechnology,” the official said.

The immediate practical effect of the ruling is unclear. The European Commission halted the approval of new GM varieties in 1998, but began limited approvals again in May 2004, after the US launched the WTO case. Nearly two dozen applications remain in the pipeline.