International trade of genetically modified foods
Encyclopedia
The European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

 and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 have strong disagreements over the EU's regulation of genetically modified food
Genetically modified food
Genetically modified foods are foods derived from genetically modified organisms . Genetically modified organisms have had specific changes introduced into their DNA by genetic engineering techniques...

. The US claims these regulations violate free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...

 agreements, the EU counter-position is that free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...

 is not truly free without informed consent
Informed consent
Informed consent is a phrase often used in law to indicate that the consent a person gives meets certain minimum standards. As a literal matter, in the absence of fraud, it is redundant. An informed consent can be said to have been given based upon a clear appreciation and understanding of the...

.

In Europe, a series of unrelated food crises during the 1990s created consumer
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...

 apprehension about food safety
Food safety
Food safety is a scientific discipline describing handling, preparation, and storage of food in ways that prevent foodborne illness. This includes a number of routines that should be followed to avoid potentially severe health hazards....

 in general, eroded public trust in government oversight of the food industry
Food industry
The food production is a complex, global collective of diverse businesses that together supply much of the food energy consumed by the world population...

.

This has further fueled widespread (http://terresacree.org/sondage.htm) public concern about genetically modified organism
Genetically modified organism
A genetically modified organism or genetically engineered organism is an organism whose genetic material has been altered using genetic engineering techniques. These techniques, generally known as recombinant DNA technology, use DNA molecules from different sources, which are combined into one...

s (GMO), in terms of potential environmental protection (in particular biodiversity
Biodiversity
Biodiversity is the degree of variation of life forms within a given ecosystem, biome, or an entire planet. Biodiversity is a measure of the health of ecosystems. Biodiversity is in part a function of climate. In terrestrial habitats, tropical regions are typically rich whereas polar regions...

), health
Health
Health is the level of functional or metabolic efficiency of a living being. In humans, it is the general condition of a person's mind, body and spirit, usually meaning to be free from illness, injury or pain...

, and safety
Biosafety
Biosafety: prevention of large-scale loss of biological integrity, focusing both on ecology and human health .Biosafety is related to several fields:*In ecology ,...

 of consumers. Critics of GM foods contend that there is evidence that the cultivation of genetically modified plants may lead to environmental changes. Directives such as directive 2001/18/EC were designed to require authorisation for the placing GMO on the market, in accordance with the precautionary principle
Precautionary principle
The precautionary principle or precautionary approach states that if an action or policy has a suspected risk of causing harm to the public or to the environment, in the absence of scientific consensus that the action or policy is harmful, the burden of proof that it is not harmful falls on those...

. (see also Tax, tariff and trade
Tax, tariff and trade
The tax, tariff and trade laws of a political region, state or trade bloc determine which form of consumption and production tend to be encouraged or discouraged...

).

Many European consumer
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...

s are demanding the right to be informed whether food that they have consumed had been genetically modified. Some polls indicate that some Americans would also like labeling, but it has not become a major issue. New EU regulations are expected to require strict labeling
Mandatory labelling
Mandatory labelling or labeling is the requirement of consumer products to state their ingredients or components....

 and traceability
Traceability
Traceability refers to the completeness of the information about every step in a process chain.The formal definition: Traceability is the ability to chronologically interrelate uniquely identifiable entities in a way that is verifiable....

 of all food and animal feed
Compound feed
Compound feeds are feedstuffs that are blended from various raw materials and additives. These blends are formulated according to the specific requirements of the target animal...

 containing more than 0.9 percent GM ingredients. Also Codex Alimentarius
Codex Alimentarius
The Codex Alimentarius is a collection of internationally recognized standards, codes of practice, guidelines and other recommendations relating to foods, food production and food safety. Its name derives from the Codex Alimentarius Austriacus...

 published a document to safe guard the GM food in 2003 and further compliances need to be made if the GM food is for the purpose of exporting and importing.

A 2003 survey by the Pew Research Center
Pew Research Center
The Pew Research Center is an American think tank organization based in Washington, D.C. that provides information on issues, attitudes and trends shaping the United States and the world. The Center and its projects receive funding from The Pew Charitable Trusts. In 1990, Donald S...

 found that a majority of people in all countries surveyed felt that GM foods were "bad". The lowest scores were in the US and Canada, where 55% and 63% (respectively) were against it, while the highest were in Germany and France with 81% and 89% disapproving. The survey also showed a strong tendency for women to be more opposed to GM foods than men. http://people-press.org/commentary/display.php3?AnalysisID=66

In 2002, Oregon Ballot measures gave voters in that state one of the first opportunities in the United States to directly address that issue. The measure, which would have required the labeling of genetically engineered foods, failed to pass by a ratio of 7 to 3.

Friedrich-Wilhelm Graefe zu Baringdorf, member of the German Green Party and vice president of the Landwirtschaftsausschuss (committee of agriculture) of the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....

 said on the 1 July 2003: "In America 55% of the consumers are against GM food and 90% in favor of a clear labeling."

Agricultural Trade Market Between USA and Europe

The European Union and United States are in strong disagreement over the EU's ban on most genetically modified foods.

The value of agricultural trade between the US and Europe is estimated at $57 billion at the beginning of the 21st Century, and some in the U.S., especially farmers and food manufacturers, are concerned that the new proposal by the European Union could be a barrier to much of that trade.

In 1998, the United States exported $63 million worth of maize
Maize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...

 to the EU, but the exports decreased to $12.5 million in 2002.

The drop-off might also be due to falling commodities prices, less demand due to the recession, U.S. maize being priced out of foreign markets by a strong dollar, and importing countries' reaction to the planned invasion of Iraq. However, American farm industry advocates blame the EU's ban.

European Proposal over Genetically Modified Food

The European Parliament's Committee on the Environment, Public Health and Food Safety
Committee on the Environment, Public Health and Food Safety
The Committee on the Environment, Public Health and Food Safety is a committee of the European Parliament. It has 68 members and a secretariat of 10 administrators. Its chairman is...

http://www.europarl.eu.int/comparl/envi/default_en.htm proposal, adopted in the summer of 2002 and expected to be implemented in 2003, has deep cultural roots that are difficult to understand for the US agricultural community. It requires that all food/feed containing or derived from genetically modified organisms be labeled and any GM ingredients in food be traced. It would also require documentation tracing biotechnological products through each step of the grain
Cereal
Cereals are grasses cultivated for the edible components of their grain , composed of the endosperm, germ, and bran...

 handling and food production processes.

The new European tax, tariff and trade proposal would particularly affect US maize
Maize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...

 gluten and soybean
Soybean
The soybean or soya bean is a species of legume native to East Asia, widely grown for its edible bean which has numerous uses...

 exports, as a high percentage of these crops are genetically modified in the USA (86 percent of US maize and 93 percent of soybeans were genetically modified in 2010).

The ultimate resolution of this case is widely thought to rest on labeling rather than food aid. Many European consumers are asking for food regulation (demanding labels that identify which food has been genetically modified), while the American agricultural industry is arguing for free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...

 and is strongly opposed to labeling, saying it gives the food a negative connotation.

Lori Wallach, director of Public Citizen's Global Watch indicates that American agricultural industry is "using trade agreements to determine domestic health, safety and environmental rules" because they fear that "by starting to distinguish which food is genetically modified, then they will have to distinguish energy standards, toxic standards that are different to those that European promotes."

The American Agricultural Department officials answer that since the United States does not require labeling, Europe should not require labeling either. They claim mandatory labelling
Mandatory labelling
Mandatory labelling or labeling is the requirement of consumer products to state their ingredients or components....

 could imply there is something wrong with genetically modified food, which would be also a trade barrier
Trade barrier
Trade barriers are government-induced restrictions on international trade. The barriers can take many forms, including the following:* Tariffs* Non-tariff barriers to trade** Import licenses** Export licenses** Import quotas** Subsidies...

. Current U.S. laws do not require GM crops to be labeled or traced because U.S. regulators do not believe that GM crops pose any unique risks over conventional food. Europe answers that the labeling and traceability requirements are not only limited to GM food, but will apply to all agricultural goods. Such labelling has been mandatory for many years in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

 where the U.S. is also arguing against identification of GM products.

The American agricultural industry also complains about the costs implied by labeling.

Official US complaint with the WTO

The ban over agricultural biotechnology is said by some Americans to breach WTO
World Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...

 rules. Robert B. Zoellick, the United States trade representative, indicated the European position toward GMO was thought of as "immoral" since it could lead to starvation in the developing world
Developing country
A developing country, also known as a less-developed country, is a nation with a low level of material well-being. Since no single definition of the term developing country is recognized internationally, the levels of development may vary widely within so-called developing countries...

 or wars, as seen in some famine-threatened African countries (e.g., Zambia
Zambia
Zambia , officially the Republic of Zambia, is a landlocked country in Southern Africa. The neighbouring countries are the Democratic Republic of the Congo to the north, Tanzania to the north-east, Malawi to the east, Mozambique, Zimbabwe, Botswana and Namibia to the south, and Angola to the west....

, Zimbabwe
Zimbabwe
Zimbabwe is a landlocked country located in the southern part of the African continent, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the southwest, Zambia and a tip of Namibia to the northwest and Mozambique to the east. Zimbabwe has three...

, and Mozambique
Mozambique
Mozambique, officially the Republic of Mozambique , is a country in southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west and Swaziland and South Africa to the southwest...

) that refuse to accept US aid because it contains GM food.

Zoellick's critics argue that US concern over Third World
Third World
The term Third World arose during the Cold War to define countries that remained non-aligned with either capitalism and NATO , or communism and the Soviet Union...

 starvation is merely a cover for other issues. Some money for development aid is used by the American government via the World Food Programme
World Food Programme
The World Food Programme is the food aid branch of the United Nations, and the world's largest humanitarian organization addressing hunger worldwide. WFP provides food, on average, to 90 million people per year, 58 million of whom are children...

 (WFP) to help their farmers by buying up overproduction and giving it to the UN organisation. GM-scepticism interferes with this program. American farmers lost marketshare in certain countries after changing to genetically modified food because of sceptical consumers.

Another European response to the claims of immorality is that the EU gives 7 times more in development aid than the US, yet its economy is less than 10% bigger than America's, and its GDP/head much lower than that of the US.

In May 2003 the Bush administration officially accused the European Union of violating international trade agreements, in blocking imports of U.S. farm products through its long-standing ban on genetically modified food. Robert Zoellick announced the filing of a formal complaint with the WTO challenging the moratorium after months of negotiations trying to get it lifted voluntarily. The complaint was also filed by Argentina, Canada, Egypt, Australia, New Zealand, Mexico, Chile, Colombia, El Salvador, Honduras, Peru, and Uruguay. The formal WTO case challenging the EU's regulatory system was in particular lobbied by U.S. biotechnology giant Monsanto Company and France's Aventis
Sanofi-Aventis
Sanofi S.A. is a multinational pharmaceutical company headquartered in Paris, France, the world's fourth-largest by prescription sales. Sanofi engages in the research and development, manufacturing and marketing of pharmaceutical products for sale principally in the prescription market, but the...

, as well as by big agricultural groups such as the National Corn Growers Association.

The US move was also interpreted as a sanction against the EU for requesting the end of illegal tax breaks for exporters or face up to $4 billion in trade sanctions in retaliation for Washington's failure to change the tax law, which the WTO ruled illegal four years ago.

Ratification of the Biosafety Protocol by the EU Parliament

In June 2003, the European Parliament
European Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...

 ratified a three-year-old U.N.
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...

 biosafety protocol
Cartagena Protocol on Biosafety
The Cartagena Protocol on Biosafety is an international agreement on biosafety, as a supplement to the Convention on Biological Diversity. The Biosafety Protocol seeks to protect biological diversity from the potential risks posed by living modified organisms resulting from modern biotechnology.The...

 regulating international trade
Trade
Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...

 in genetically modified food, expected to come into force in fall 2003 since the necessary number of ratification was reached in May 2003. The protocol lets countries ban imports of a genetically modified product if they feel there is not enough scientific evidence the product is safe and requires exporters to label shipments containing genetically altered commodities such as corn or cotton. It makes clear that products from new technologies must be based on the precautionary principle
Precautionary principle
The precautionary principle or precautionary approach states that if an action or policy has a suspected risk of causing harm to the public or to the environment, in the absence of scientific consensus that the action or policy is harmful, the burden of proof that it is not harmful falls on those...

 and allow developing nations to balance public health against economic benefits.

Jonas Sjoestedt, a Swedish Left member of the EU assembly, said that "this legislation should help the EU to counter recent accusations by the U.S administration that the EU is to blame for the African rejection of GM food aid last year."

The United States did not sign the protocol, saying it was opposed to labeling and fought import bans.

European de facto moratorium

In 1998, a de facto moratorium led to the suspension of approvals of new genetically modified organism
Genetically modified organism
A genetically modified organism or genetically engineered organism is an organism whose genetic material has been altered using genetic engineering techniques. These techniques, generally known as recombinant DNA technology, use DNA molecules from different sources, which are combined into one...

s (GMO) in the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

 pending the adoption of revised rules to govern the approval, marketing and labelling of biotech products. Imports and cultivation of already approved GM varieties and food products continued. In July 2003, European environment ministers and the European Parliament
European Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...

 agreed to new controls on GMOs that could eventually lead the then 15 members bloc to re-open the Union's markets to new genetically modified products in 2004.

The new labeling and traceability rules, which cover both food and feed, require any products with a GMO content of more than 0.9 percent to be labelled. Labelling is also required for products that have been derived from GMOs, but where the GM content might no longer be detectable (such as soy oil produced from genetically modified soy).

The threshold for the presence of unapproved GMOs is 0.5 percent provided that the GMOs have been judged as safe for human health and the environment by the relevant Scientific Committees or the European Food Authority. This amount will be set for 3 years. After 3 years, all food containing non-authorized GMO will be banned.

Animals fed with transgenic cereals are not covered by the labeling requirements.

Traceability of GMO products is mandatory, from sowing to final product. Genetically modified goods will have to carry a special harmless DNA sequence (a DNA code bar) identifying the origin of the crops, making it easier for regulators to spot contaminated crops, feed, or food, and enabling products to be withdrawn from the food chain
Food chain
A food web depicts feeding connections in an ecological community. Ecologists can broadly lump all life forms into one of two categories called trophic levels: 1) the autotrophs, and 2) the heterotrophs...

 should problems arise. A series of additional sequences of DNA with encrypted information about the company or what was done to the product could also be added to provide more data. (see Mandatory labeling
Mandatory labelling
Mandatory labelling or labeling is the requirement of consumer products to state their ingredients or components....

).

Following the entry into force of the new regulations, the first genetically modified food product (canned maize) since 1998 was approved for marketing in the European Union in May 2004. While a number of other biotech products have been approved since then, approvals remain controversial. European ministers have continuously failed to reach a decision in support of or against the applications, highlighting the big divide among member states. As a result, the approvals were granted by the European Commission, which is entitled to take a decision in case ministers fail to do so.

Effect of cultural differences between US and Europe

The U.S. population has historically placed a considerable degree of trust in the regulatory oversight provided by the U.S. Department of Agriculture and its agencies. There is little tradition of people having a close relationship with their food, with the overwhelming majority of people having bought their food in supermarkets for years. But the 2003 survey by the Pew Research Center showed that even in the U.S., 55% see GM food as "bad" food. A 2010 survey found that over one third of U.S. consumers were very or extremely concerned about GM food, a 3% reduction from 2008.

In Europe, and particularly in the UK, there is less trust of regulatory oversight of the food chain. In many parts of Europe, a larger measure of food is produced by small, local growers using traditional (non-intensive & organic) methods (see local food
Local food
Local food or the local food movement is a "collaborative effort to build more locally based, self-reliant food economies - one in which sustainable food production, processing, distribution, and consumption is integrated to enhance the economic, environmental and social health of a particular...

).

WTO decision

In 2006, the World Trade Organization ruled that European Union restrictions on genetically engineered crops violated international trade rules. The United States, Canada, and Argentina, who together grew 80 percent of all biotech crops sold commercially at that time, had complained that the EU had a 'de facto' moratorium on such crops after 1999. The countries argued that the EU's regulatory process was far too slow and its standards were unreasonable given that the overwhelming body of scientific evidence finds the crops safe. The ruling had little immediate effect as the EU had already lifted its moratorium on GM crops in 2004.

External links

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