U.S. Plans WTO Complaint Over Biotech Food, Crops

May 14, 2003

WASHINGTON -- U.S. officials announced plans to file a complaint with the World Trade Organization to overturn the European Union's ban on genetically modified agricultural products, a move that likely will ratchet up diplomatic tensions with European allies, Wednesday's Wall Street Journal reported.

Adding political weight to the trade action, Canada, Argentina and Egypt joined Tuesday's U.S.-initiated WTO complaint to lift the five-year-old moratorium by the 15-nation EU. Nine other countries also are supporting the case.

"The EU's moratorium violates WTO rules," said U.S. Trade Representative Robert B. Zoellick. "Biotech food helps nourish the world's hungry population, offers tremendous opportunities for better health and nutrition and protects the environment by reducing soil erosion and pesticide use."

The first step will be a two-month consultation with the EU to negotiate lifting the ban. If that fails, the WTO will decide if the EU has violated trade law. If the WTO rules in favor of the U.S., it could take another two years to retaliate with sanctions.

In response, EU Trade Commissioner Pascal Lamy said: "The EU's regulatory system for [genetically modified organisms'] authorization is in line with WTO rules: It is clear, transparent and nondiscriminatory. There is therefore no issue that the WTO needs to examine."

The EU imposed a moratorium on approving new biotech products in 1998, reflecting concern among European consumers and environmental groups about perceived health issues surrounding genetically modified foods. The move has roiled trade relations with the U.S. ever since.

Wall Street Journal Staff Reporters Michael Schroeder in Washington and Scott Miller in Brussels contributed to this report.

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