United States to drop GM complaint against EU

February 21 2003

AFP -- Washington is dropping plans to take the European Union to
the World Trade Organisation (WTO) over its refusal to accept
genetically modified (GM) crops, a US embassy official in London
signalled yesterday.

The United States has threatened a complaint to the WTO, claiming that
"Luddite" Europeans had broken the organisation's free trade rules
with a 1998 decision not to allow in new GM seeds or crops.

Only US soya, which was approved prior to 1998, is allowed to be sold
in the EU.

The row threatened to be the latest in a series of fractious
trans-Atlantic trade disputes.

But the US embassy's minister counsellor for agricultural affairs
Peter Kurz told the BBC that a decision had been taken not to proceed
with the complaint to the WTO.

Speaking on the BBC Radio 4 Farming Today program, Kurz said the
decision "was made at a high level of government. I suppose the idea
was we don't need further trade irritants.

"If there is some way of working this one out then so much the better.
If not, then maybe the decision will have to be reconsidered."

Kurz said the United States still believed Europe should accept its
crops, and did not believe food products should be labelled so that
consumers can see whether or not they contain GM material.

"This does not mean we're still not very concerned about the
moratorium on approval of new US GM crops or that we are not very
concerned about the position on labelling and traceability," he said.

"We believe that foods should not unnecessarily be labelled when there
is no substantial difference between two foods according to the way
they are produced."

Kurz rejected suggestions that the dropping of the case was part of US
efforts to build bridges with countries whose support Washington needs
in a looming war against Iraq.

"I wouldn't dream of speculating about any connection between this
issue and any ... broader urgent issue in the world today," he said.

"I happen to think that this decision is probably made on the merits
of the issue itself."