Biotech industry hails WTO ruling, greens annoyed

BRUSSELS, Feb 7 (Reuters) - Biotech industry groups hailed a world trade ruling on Tuesday that condemned the European Union over its policy on genetically modified (GMO) crops and foods, while green groups blasted it as a direct attack on democracy.

In a keenly awaited confidential judgment, the World Trade Organisation said the EU applied an effective moratorium on GMO imports for six years from 1998 -- illegal under WTO rules.

Six EU countries also broke trade rules by slapping their own bans on marketing and importing GMO products that had already won EU-wide approval, according to diplomats who had seen the finding issued by the Geneva-based trade body.

"If confirmed, the verdict seems to be pretty unambiguous," said Christian Verschueren, director-general of CropLife International, representing the global plant science industry.

"It seems to send a clear signal that any measures to protect animal, human and plant health have to be based on sound science," he told Reuters. "We hope that ... we gradually gain more political clarity within the EU, and get the regulatory machine working more effectively than it has done."

The complaint was filed against the EU in 2003 by Argentina, Canada and the United States -- all major growers of GMO crops such as soy and maize.
U.S. farmers say the EU ban cost them some $300 million a year in lost sales while it was in effect since many U.S. agricultural products, including most U.S. corn, were effectively barred from entering EU markets.

Europe's shoppers are known for their wariness towards GMO products, often dubbed as "Frankenstein foods".

But the biotech industry insists that its products are perfectly safe and say Europe's hostility is unfounded.

Green groups were disappointed by the findings, saying the months of waiting, and many delays, in the WTO biotech case had already made Europe take a much more pro-active stance on approving GMOs than warranted by the poor consumer demand for modified foods.

"U.S. agro-chemical giants will not sell a bushel more of their GM grain as a result of the WTO ruling," said Daniel Mittler, trade adviser at Greenpeace International.

"European consumers, farmers and a growing number of governments remain opposed to GMOs, and this will not change in Europe or globally," he said in a statement.

The three complainants said the EU's moratorium, lifted in May 2004, was more about business protectionism than concerns about the health of consumers or the environment, accusing Brussels of dragging its feet and abusing WTO rules that enable trading nations to restrict imports on health grounds.

The EU said it was needed to enable it to gather data from biotech firms and decide how to update its rules on GMOs.

Green groups were also upset about the WTO's view on the EU's national bans on specific GMO products, where some states used legal exemption clauses to block GMOs on their territory.

"Member states voted only last year to maintain those bans," said Adrian Bebb, GMO campaigner at Friends of the Earth. "This is a direct attack on democracy in Europe."