GM food row between U.S., Canada, Argentina and the EU goes to WTO dispute settlement body

Food & Drink Weekly, Sept 8, 2003

A highly contentious transatlantic battle over trade in genetically modified foods has now been dumped into the laps of a handful of international trade law experts after the World Trade Organization's Dispute Settlement Body (DSB) agreed August 29 to establish a panel to rule on claims from the United States, Canada, and Argentina that the European Union is violating global trade rules by restricting the marketing of biotech products.

Although the WTO would clearly prefer the dispute--and the subsequent attention it is already drawing from the organization's critics in the environmental community--to be tackled elsewhere, the trade body was given no choice in the matter after the three complainant countries made their second request for panels at the DSB meeting following the EU's blocking of their first requests on Aug. 18.

Under WTO rules, a second request for a panel must be accepted by the DSB unless all members in attendance, including the complainants, block the request. The three countries will now begin discussions with the EU on the appointment of the three legal experts who will sit on the panel; if no agreement is reached within 20 days, WTO Director-General Supachai Panitchpakdi may be asked to step in and appoint the panelists for them. The three had made requests for separate panels, but they agreed that a single, three member panel, would hear their arguments. As a general rule, a panel is required to circulate its ruling within six months of the appointment of the panelists, although the panel can request extra time (normally up to a maximum of nine months) if more time is needed.

The EU dismisses claims that a de-facto moratorium is in place, noting that 18 GMOs have already received market authorization under previous EU approval legislation and that 20 applications are currently in the pipeline under the existing legislation. Among the products still awaiting approval are Monsanto Roundup Ready corn and cotton, Pioneer Bt com, and Bayer Liberty Link soybeans, all widely used in the United States, Canada and Argentina.

U.S. officials and Canadian officials insisted that the two countries are not challenging the EU's right to protect human health and the environment through its authorization procedures for GMOs. "This dispute is not about levels of protection or risk," Canada told the DSB meeting. "This dispute is about the EU's failure to apply its own approval procedures for pending biotech product applications and about bans imposed by EU member states on products that have already been approved as safe by the EU."

The United States added that the EU measures, which are not based on science, are hindering the worldwide development and application of agricultural biotechnology. "In a world where hunger and starvation remain a tragic reality for many throughout the developing world, it is essential to take advantage of the benefits of biotechnology in terms of raising farmer productivity, reducing hunger, and improving the environment," the United States added.