European Union Moratorium

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BIO is concerned about the European Union's (EU) efforts to impose severe trade restrictions on biotechnology products. While the EU has authorized some biotechnology products for cultivation and consumption, product approvals were halted in 1998. Since then, the EU has been developing regulations governing biotechnology that take a precautionary principle approach. It is believed that the EU moratorium costs American farmers an estimated $300 million a year in lost sales.

• European Commission, Communication from the Commission on the Precautionary Principle (PDF) (February 2, 2000).
• Ronald Bailey, The Looming Trade War Over Plant Biotechnology, CATO Institute, Trade Policy Analysis No. 18 (PDF) (August 1, 2002).
• General Accounting Office, International Trade: Concerns Over Biotechnology Challenge U.S. Agricultural Exports, GAO-01-727 (PDF) (June 15, 2001).
• Pew Initiative on Food Biotechnology, U.S. vs. E.U.: An Examination of the Trade Issues Surrounding Genetically Modified Food (PDF) (2002).
• Pew Initiative on Food and Biotechnology, Are the U.S. and Europe Heading for a Food Fight Over Genetically Modified Food? (October 24, 2001).
  Read the policy dialogue here.

EU Directive 2001/18 - July 2001

In July 2001, the EU approved Directive 2001/18, a legislative package that would mandate labeling and traceability requirements on all imported biotechnology food products. The new rules are scheduled to go into effect in 2003, when all member states are required to implement laws on the testing and licensing of crops improved through biotechnology.

• European Commission, Proposal for a Regulation Concerning Traceability and Labelling of Genetically Modified Organisms and Traceability of Food and Feed Products Produced from Genetically Modified Organisms and Amending Directive (PDF) 2001/18/EC (July 25, 2001).

WTO Case Filed Against the European Union - May 2003

In May 2003, the United States, Argentina and Canada filed a formal complaint with the World Trade Organization (WTO) against the EU over its illegal five-year moratorium on approving crops improved through biotechnology. The first step in a WTO dispute is to request and conduct consultations over a 60-day period. These procedures are designed to encourage parties to resolve their differences.

In early August, after no resolution was achieved after the initial 60 day period, the United States has requested the formation of a dispute settlement panel to hear arguments. Dispute settlement procedures, including appeal, typically take a total of 18 months.

• United States Requests Dispute Panel in WTO Challenge to EU Biotech Moratorium
• U.S. and Cooperating Countries File WTO Case Against EU Moratorium On Biotech Foods and Crops
• USTR Web site

EU Votes to End Moratorium - July 2003

The EU passed two laws in early July that should allow member nations to end the moratorium on food improved through biotechnology. Regulations will require producers to trace "genetically modified organisms at all stages of production and oblige supermarkets to label products containing more than 0.9 percent biotech material to say 'This product is produced from GMOs'."

BIO wholeheartedly supports the stated intent of the new biotech rules - which is to provide EU consumers with the opportunity to choose foods improved through biotechnology, or their alternatives, and to allow EU politicians to end the moratorium. However, BIO believes the traceability and labeling standards are not scientifically defensible. In BIO's opinion, it seems more likely that the new regulations will drive food manufacturers to reformulate their products in order to shun biotech-derived ingredients altogether since this would be their only effective means of avoiding the impractical burdens the new regulations would impose. BIO believes the overt moratorium would be replaced by a technical barrier to trade.

• "BIO Statement on European Union Vote on Biotech Foods," BIO statement, July 2, 2003

EU Sues 11 Member States - July 2003

The European Commission filed legal cases with the European Court of Justice against 11 member states for failing to implement EU Directive 2001/18 at the national level. France, Luxembourg, Belgium, the Netherlands, Germany, Italy, Ireland, Greece, Spain, Austria and Finland are in violation of Union laws in that none have implemented laws on the testing and licensing of crops improved through biotechnology within their own states. Though this move has no bearing on the current WTO case filed by the United States, Argentina and Canada, BIO believes it may demonstrate willingness by the European Commission to use its power to enforce compliance with Union laws by member states.

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