EU slams U.S. biotech threat

BRUSSELS, May 13 (UPI) -- The European Union Tuesday lashed out at a U.S. decision to haul it before the World Trade Organization for flouting global rules on gene-altered crop imports. The European Commission, the EU's powerful executive body, described the move as "legally unwarranted, economically unfounded and politically unhelpful." European Trade Commissioner Pascal Lamy added: "The EU's regulatory system for genetically modified crop authorization is in line with WTO rules: it is clear, transparent and non-discriminatory. There is therefore no issue that the WTO needs to examine." At a Washington news conference Tuesday, U.S. Trade Representative Robert Zoellick and Agriculture Secretary Ann Veneman said the United States, Argentina, Canada and Egypt would file a WTO case against the EU over its "illegal" moratorium on approving new agricultural biotech products. Australia, Chile, Colombia, El Salvador, Honduras, Mexico, New Zealand, Peru and Uruguay also voiced their support for the U.S.-led action. U.S. Trade Representative Robert Zoellick said the 15-member club's moratorium on new biotech crop licenses violated WTO rules, ignored scientific advice and impoverished farmers in developing countries. The EU slapped a temporary ban on imports of genetically modified crops, such as soybean and corn, in 1998 after a high profile campaign against so-called 'Frankenstein foods' by green groups. The Brussels-based bloc is currently in the process of easing its restrictions, but European consumers remain firmly opposed to having biotech food on their tables. A recent poll carried out by the EC showed that 70 percent of Europeans said they would not eat gene-altered food. U.S. farmers say the EU moratorium costs them $300 million a year in lost corn sales alone. However, the European biotechnology industry said legal action was not the answer. "We understand the frustrations of the EU's trading partners, but it would have been preferable not to go down the WTO route," said Europabio spokeswoman Adeline Farrelly. Washington's decision is likely to further escalate tensions between the EU and the United States following divisions over Iraq and a host of trade-related issues. The EU has already lodged a complaint with the WTO over U.S. measures to protect its steel industry and last week threatened to slap $4 billion worth of sanctions on the United States to compensate for export subsidies to American firms. -- Copyright 2003 by United Press International. All rights reserved. --