BioWorld International Correspondent

BRUSSELS, Belgium - The European Union's commissioner for trade policy last week vigorously rejected U.S. accusations that EU rules on biotechnology were an unfair impediment to biotechnology trade.

Pascal Lamy described as "unacceptable" the language used by U.S. trade representative Robert Zoellick, who on Jan. 10 alleged that the EU's ban on U.S. exports of genetically modified crops was similar to the obstructionism of the machine-wreckers of the industrial revolution, the Luddites.

Zoellick has threatened to take the EU to the World Trade Organization. He said the EU's continuing moratorium that has blocked the access of new GMO-based products for four years now is "a total violation of the WTO." U.S. farmers claim to have run up huge losses because of the ban, imposed due to European concerns over human safety and preservation of the environment. And now the U.S. also is complaining that European reservations over GM crops are leading to additional problems with humanitarian aid, with the EU exerting pressure to dissuade famine-stricken countries from accepting GM-derived food aid.

"I find it immoral that people in Africa are not being supplied with food to live because people have invented dangers about biotechnology," Zoellick said. "European anti-scientific policies are spreading to other corners of the world," he warned, a development he saw as "extremely disturbing."

Last week, Zoellick repeated his criticism of the moratorium during a meeting in Mauritius. "I believe that we've waited long enough, that this is anti-scientific, and that it is not only undermining the future of our agricultural trade, but also Africa's," he said.

On Thursday, the U.S. ambassador to the EU, Rockwell Schnabel, told a business meeting in Brussels, "We must find a way to resolve our divisions on this emerging science, for the sake not only of technological advance, but also for those around the world who could benefit from the products of biotechnology. We've made our views clear on the EU's moratorium on biotechnology approvals for four years."

But he made clear that there were more than trade issues involved, as he stepped up the tone of the U.S. criticism. "There are scientific and humanitarian issues at stake. The developing world cannot afford pseudo-science to take the place of real scientific findings on the benefits and risks of GMOs. The tide of consumer fear in Europe has unfortunately swamped constructive discussion on the subject."

Also this month U.S. Deputy Secretary of Agriculture Jim Moseley insisted that "biotechnology is one of the world's brightest hopes for addressing hunger, malnutrition, water scarcity and environmental degradation." Addressing U.S. cotton producers Jan. 7 in Nashville, Tenn., Moseley described the famine in southern Africa - and the refusal by some countries of U.S. food aid because it may contain grain derived from biotechnology - as a "flash point." Claiming that fears had been expressed by some African nations that the European Union would cut off purchases from Africa if the countries grow biotech crops, Moseley said, "We cannot let irrational public opposition in Europe prevent the rest of the world from accessing this technology."

The call has the backing of three leading senators, who have asked President Bush to initiate a WTO dispute settlement case against the EU moratorium. Sens. Tom Harkin and Chuck Grassley of Iowa and Max Baucus of Montana have written to the president warning that the recently adopted EU plan to expand mandatory labeling of products derived from biotechnology would harm U.S. agricultural exports. They also claimed that the EU's new traceability requirements for complete segregation of biotech and non-biotech products will be "virtually impossible" to comply with.

Commissioner Lamy has retorted that the EU will fight the accusations at the WTO if necessary. He insisted that EU rules limiting access to its market are fully justified. And he dismissed suggestions that EU caution over GM crops is in any way handicapping food aid programs.

But within the EU, too, there is increasing embarrassment at senior level over the EU's inability to establish coherent regulation in the area of biotechnology. The moratorium on new GM products - which is the result of continued defiance of the EU's own biotechnology authorization rules by Greece, Italy, Austria, Luxembourg, Denmark and France - is recognized by many leading EU figures as difficult to defend. Franz Fischler, European commissioner for agriculture, rural development and fisheries, has been the most outspoken over recent weeks, calling on the recalcitrant member states to adopt "a proactive attitude and to explain to consumers the advantages that biotechnology has to offer."

David Byrne, European commissioner for health and consumer protection, also told his staff to persuade the doubters to lift their moratorium and to re-launch the authorization process for GMOs. And European Environ-ment Commissioner Margot Wallström said at the end of 2002 that now that the EU has adopted new labeling and traceability legislation for GMOs, there is no justification for the moratorium. "We had promised to set up strict legislation that would allow these products to be traced right through the production stage and food chain. We have kept our promise," she said.

The latest internal critic was the European Commissioner responsible for the EU's much-vaunted single market, Frits Bolkestein. He said last week that obstructionism by member states was jeopardizing Europe's own future, and failure to adopt or implement EU rules covering biotechnology was one of his key examples. His latest report on the progress the EU has made in adapting its laws to facilitate trade and economic development notes said, "For example, the EU cannot credibly call for action to unleash the potential of the biotechnology sector, while, more than two years after the agreed deadline, nine member states have still not implemented the measures under the 1998 Biotechnology Directive aimed at encouraging investment and research and development in this sector."