Canada backs U.S. in WTO case against EU GMO Ban; Bush administration cautious

Food & Drink Weekly, Jan 20, 2003

A senior Canadian trade official said January 15 that Canada shares the growing "frustration" of the United States with the European Union's de facto ban on imports of bioengineered food products, and that "all options" were on the table in terms of possible Canadian support for U.S. action in the World Trade Organization. Sergio Marchi, who is Canada's ambassador to the WTO, told reporters that Canada continues to raise "our very real concerns" over the ban with the EU. "For us," he said, "all options are very much on the table."

Marchi declined to say whether Canada would back the United States if it brings a case against the EU. But he said that Canada "appreciates" the concern expressed by U.S. Trade Representative Robert Zoellick over the ban in recent weeks. "[I]f it goes to a [WTO dispute settlement] panel," Marchi said, "we'll obviously respond accordingly...."

European Trade Commissioner Pascal Lamy responded to Zoellick's threat of WTO action by saying that the EU would "fight" the United States if it were to file a case at the WTO and win.

Marchi, who currently chairs the WTO General Council, said January 15 that Canada agrees with the United States that "we should let science do the talking, and not politics," with respect to the safety of bioengineered products, or genetically modified organisms (GMOs). He said that Canada, like the United States, has found no evidence to suggest that GMOs threaten human health, and that many people in the Canadian agriculture community believe that the EU import ban is merely an unjustified non-tariff trade barrier. "We haven't found any [evidence]," Marchi said. "We're not convinced the Europeans have found the evidence. And I think many -- certainly in our agriculture community -- are simply seeing this as another form of a non-tariff barrier which impedes the movement of these products."

However, Some observers believe the U.S. State Department is urging caution on this matter. For example, State Department spokesman Richard Boucher recently was asked to comment on Zoellick's remarks. Boucher specifically was asked whether there was any movement in the administration regarding launching a case against the EU. Boucher's response: "I don't know if we have any specific movement. Maybe that would be better reported out of the Trade Representative's office. But I would make clear our view, which is that the moratorium that the EU has had on biotechnology approvals.., for four years is effectively a ban."

Boucher also noted that the moratorium "significantly hurts our trade with Europe and we believe it violates agricultural trade rules." He said the United States would like the Europeans to end the moratorium now and to begin considering approvals. "In the absence of any such action, we must consider our options, and a WTO case against the EU is one option that's currently under serious discussion," said Boucher.