The Hindu : International : U.S. sues E.U. over crop ban

Online edition of India's National Newspaper
Wednesday, Apr 28, 2004

International

International

U.S. sues E.U. over crop ban

LONDON, APRIL 27. The U.S. has demanded that the E.U. abandon its ban on the growing of genetically modified crops and pay at least $1.8 billion in compensation for loss of exports over the past six years.

The challenge is outlined in papers filed to the World Trade Organisation that have been seen by the Guardian.

The WTO is now facing the biggest case in its history, one that could spark a damaging trade war between the U.S. and Europe and split the international community.

Though the U.S. announced it intended launching the case last year, many believed it was bluffing and trying to bully the E.U. into giving way on the issue of unfettered trade in GM.

But the papers, which were sent to the WTO last week, accuse the E.U. of imposing a moratorium on GM products in 1998 without any scientific evidence and in defiance of WTO free trade rules. The E.U. has until the end of May to reply before a WTO panel meets in June to adjudicate.

If it finds in favour of the U.S., the body will decide what trade sanctions can be imposed to force Europe to fall in line. The U.S. has said it has lost $300 millions a year as a result of lost maize imports and would expect sanctions against the E.U. to help recoup the sums.

The affair has worldwide significance because if the U.S. can force the E.U. into submission, then no country will be able to keep GM out without facing trade sanctions. But there is strong consumer resistance to GM in Europe and several countries have introduced rules banning imports of individual GMs, either for growing or in food.

These countries, Austria, France, Luxembourg, Germany, Italy and Greece, are all cited by the U.S. in the case presented to the WTO. In its submission it says that none of these bans can be legal. This is probably the strongest part of the U.S. case because the trade rules allow countries to ban products on health or environmental grounds but they need to provide evidence.

The U.S. case is that none of these countries have done so and therefore are automatically in breach of the rules.

Britain has sought to avoid these trade sanctions by supporting the introduction of GMs. - Guardian Newspapers Limited 2004.

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