US wins WTO case against GM bans

WASHINGTON - The World Trade Organisation has condemned Europe for holding out against genetically modified foods and crops with a landmark decision that could change the future of farming.

The WTO ruled that the European Union applied a moratorium on approving genetically modified organisms (GMOs) in violation of trade rules, diplomats said.

In a preliminary decision, the WTO also ruled that six individual states - France, Germany, Austria, Italy, Luxembourg and Greece - broke the rules by applying their own bans on marketing and importing GMOs.

The United States, Canada and Argentina brought the WTO complaint against the EU, arguing that its moratorium on GMO approvals hurt their exports and was not based on science.

"It shows that science has prevailed, which is a good step forward, and ... is going to prevent other countries from undertaking a similar kind of moratorium," said Michelle Gorman, director of regulatory relations at the American Farm Bureau.

"There will be some relief for trade," said Gorman, adding that she had not seen the 1000-page report, which US officials and lawyers were still poring over.

The EU's action effectively blocked up to US$300 million of US agricultural exports annually, said Sean Darragh, executive vice-president for food and agriculture at the Biotechnology Industry Organisation.

The ruling would send a strong message to other countries considering regulations regarding biotech crops, said one industry source with government experience.

"It will be a valuable case for the US Government in protecting the rights of its exporters around the world - there will be an immediate impact on the regulatory environment of biotech."

- REUTERS