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Source:  Daily Report for Executives: All Issues > 2008 > December > 12/08/2008 > Regulation & Law >  International Trade: EC Backs Monsanto GM Soybean; Ministers Eye New Approval Criteria

235 DER A-11

International Trade

EC Backs Monsanto GM Soybean; Ministers Eye New Approval Criteria

BRUSSELS—The European Commission Dec. 4 approved a controversial genetically modified soybean from Monsanto for import and processing food that is expected to help reduce the cost of animal feed for farmers in the EU and avoid a potential trade conflict with the United States, Brazil, and Argentina.

At the same time, EU member states in the Council of Ministers called for the European Commission and the European Food Safety Authority to continue work to possibly expand the environmental criteria used in the evaluation process of GM authorization requests. In addition, the EU ministers requested that a report be drawn up for the possible inclusion of social and economic criteria into the GM crop evaluation process. They also called on the Commission to set threshold limits for the so-called “adventitious presence”—or the result of unintentional mingling--of genetically modified crops in non-GMO seeds.

The Commission said its decision to authorize the GM soybean MON89788, which is also known in the trade as “Roundup Read 2,” came after European Food Safety Authority (EFSA) approval of the substance. EU ministers were divided on the issue and therefore the decision fell to the Commission.

EFSA concluded that there is “no risk to human or animal health or to the environment.” The authorization is valid for 10 years. However, any products produced from the GM soybean will be subject to the EU's strict labeling and traceability rules.

The EU imports approximately 80 percent of the crops such as soybeans, which are used to make animal feed. As the cost of animal feed has skyrocketed in the EU in recent years it has contributed significantly to the increased costs for farmers as well as consumers, the European Commission maintains.

The issue surrounding the Monsanto GM soybean, as well as another GM soybean patented by the German company Bayer CropScience, which was approved in September, has been considered crucial as a high percentage of soybeans grown in the United States and in Brazil and Argentina are grown with GM seeds.

French Drive to Beef Up Rules.

The decision by the European Council of Ministers to call for possible expansion of the environmental criteria for GM crops and to possibly consider adding economic and social criteria was the conclusion of a six-month drive by France, which holds the rotating EU presidency, to reform the EU regulatory process for GM crops by broadening the criteria.

Just as the issue of genetically modified crops and foods has split the EU over the past 10 years, so did the French presidency's efforts.

“There were very difficult negotiations in recent weeks and at the Council of Ministers,” said an EU diplomat, who spoke to BNA on the condition of anonymity. “There were a host of member states that were absolutely opposed to making any formal commitment to rewrite the regulatory regime.”

In advance of the EU Council of Ministers meeting Greenpeace held a large demonstration accusing some EU member states, such as the United Kingdom , the Netherlands , Sweden , and Denmark , of trying to sabotage the French presidency's efforts.

“Member states have sent a clear signal to the Commission that we need to improve the way we assess the impact of GM crops on the environment, on our health and on the lives of millions of farmers,” said Marco Contiero, a Greenpeace official. “It is now up to the Commission and the European Food Safety Authority to implement these recommendations.”

Greenpeace was highly critical of the decision to draw up “adventitious” thresholds for GM seeds.

“The Council of Ministers has put the future of agriculture at risk and has buckled under pressure from the United Kingdom and the Commission which are pushing to lower safety standards on GM seed contamination,” Contiero said.

Greenpeace Unhappy, Industry Positive.

EuropaBio, which is a lobby group representing the biotechnology industry, gave a cautious welcome to the conclusions reached by EU member states in the Council of Ministers. It noted that the conclusions agreed also call for “improvement of the implementation of the existing legal framework in order to better meet the objectives of the EU legislation” and that any improvement of the implementation of the existing legislation “would take into consideration the necessity of continuing processing applications without undue delays” and also respect relevant EU international obligations.

“There has not been one new GM crop cleared for cultivation in the EU for 10 long years,” said EuropaBio in a statement. “The current de facto moratorium on new approvals has to end so that EU farmers can choose the technology that works best for them.”

The United States successfully challenged the EU in the World Trade Organization for failing to abide by its own regulatory regime. The United States has refrained from imposing any economic sanctions that are allowed following the conclusion of the WTO case.

By Joe Kirwin