WTO Cases • Volume 8 • Number 1 • 25th January 2008

GM roundup: dispute update, new French ban, Mexican corn trials


EU misses compliance deadline

The EU missed an 11 January deadline to comply with a WTO ruling against its practices for the approval and marketing of biotech products. The initial deadline had already expired in late 2007.

The US, Canada and Argentina, the victors in the case, have temporarily suspended their right to impose retaliatory trade sanctions against EU exports in an effort to give the EU more time to demonstrate “meaningful progress on the approval of biotech products.” For the EU, however, compliance will remain a challenge due to the national policies of some of its member states, which have specific restrictions in place on genetically modified (GM) plants.

The US was not alone in criticising EU member states’ moves to restrict the importation of genetically modified food products. EU Trade Commissioner Peter Mandelson argued that the EU should approve GM imports and be a leader in the development of a “global system of clear rules that allow exporters and importers to trade GM crops and feed.” Mandelson also argued that “it [would be] an economic risk for Europe to fall behind the global economy in approving safe biotechnology.”

The case dates back to 2003, when the US, Canada and Argentina initiated WTO dispute proceedings with the EU in regard to its policies on genetically modified food imports, claiming the EU had in place a de facto moratorium on the approval of GM products. In 2006, the panel ruled in favour of the complainants. In November 2006, the EU was given twelve months to comply with the report (see Bridges Trade BioRes, 6 July 2007,). This deadline was later modified and extended to 11 January 2008.

France announces GM ban

On 11 January — the day that the EU missed its compliance deadline with the WTO biotech case — France announced that it would ban the growing of MON810 nationally. This strain of maize has been developed by Monsanto and is the only GM crop grown in France. The announcement drew criticisms not only from the US and the biotechnology industry, but also from some in France’s parliament and certain farmers. French president Sarkozy had called last year for a temporary ban of biotech products, allowing for further scrutiny of their safety by a special panel.

Bernard Accoyer, President of the French Assembly criticised the decision against MON810 by the special panel. He said the reviewing panel’s opinion was controversial and the panel itself marred by internal divisions. Accoyer added that GM foods could yield “potential public health benefits” and that the parliament should oversee the authorisation of GM foods.

Jacques Beauville, a farmer, expressed concern over whether France would be able to grow enough corn when banning the GM variety. He said that if crop yields decreased during the next year, GM maize imports from Argentina would increase have to increase. The European Commission will review the French panel’s decision. If it does not consider the evidence provided by the panel to be valid, it will ask France to lift the ban.

Mexico opens borders to US corn

Mexico will begin growing GM maize as part of a series of experimental trials. This comes at the end of a 15-year gradual phase out of import barriers protecting on certain crops, including corn, as part of the North American Free Trade Agreement (NAFTA). This 15 year time frame was put in place to allow Mexican farmers to prepare for increased competition by modernising farming techniques and diversifying crops. However, many Mexican farmers are not ready for increased trade with the US. According to some estimates, as many as two million farm jobs have been lost since NAFTA was signed.

The new GM corn trials have the support of many government officials. Catalino Flores, a geneticist working with the Agriculture Minister stated, “we don’t want to be behind. We have to start testing now…If you don’t plant something like that when everyone else is, you’ll be down the drain. ” Rural organisations of northern Mexico, which represents the wealthiest farmers, have also welcomed the trials.

However, there is strong opposition to the introduction of GM maize, particularly in light of the important cultural and economic significance of maize in Mexico. Maize was first domesticated in Mexico 9,000 years ago and is the staple food for most of the country’s 109 million people. Opponents of GM maize argued that the impact of the crop on Mexico’s environment, particularly its biodiversity, had not been studied enough. Farmers groups also voiced concerns over how they would fare when competing with potential US exports of white corn, “Mexico’s principal crop,” absent some barriers.

“French Government Move to Ban Monsanto GMO Draws Fire,” Reuters, 13 January 2008; “French Farmers Criticize Ban on Monsanto’s Corn Seed,” Bloomberg, 12 January 2008; “Mexico’s Protection for Farm Goods Runs Out, Leaving Farmers Feeling Rootless,” Associated Press, 29 December 2007; “Mexico: Transgenic Maize Knocking at the Door,” Upside Down World, 28 December 2007; “Duty-Free US Corn Imports Force Mexico GMO Debate,” Reuters, 21 December 2007.