Corn Growers See Win with WTO Biotech Ruling (2-9-06)

The National Corn Growers Association (NCGA) is pleased with a World Trade Organization (WTO) ruling this week that states the European Union (EU) placed an illegal moratorium on biotechnology crops.

The ruling, although not released officially to the public, indicates a favorable ruling in a case brought before the WTO by the United States, Argentina and Canada regarding the European Commission’s moratorium on biotechnology crops. The WTO found the EU was in violation of its trade obligations by failing to approve new biotech crops in a timely manner, although the EU contends that was not the case since new approvals were finalized recently.

“The World Trade Organization’s decision is an important step in the promotion of fair trade practices,” said Leon Corzine, NCGA chairman. “Biotechnology continues to be one of NCGA’s key issues as we work toward providing new technologies and choices for producers as well as consumers. NCGA continues to support regulatory systems based on sound scientific principles. This decision removes another barrier for trade, which is important as we continue to become more efficient and provide higher-quality products in a more environmentally way.”

NCGA, Corzine said, strongly encouraged the U.S. government to file the WTO action against what they felt was an illegal moratorium. “We were confident the WTO would find that the EU was at fault,” he said. “This ruling should be a signal to the rest of the world that trade practices such as this will not be tolerated and will give assurance to other countries of the enormous economic and environmental benefits as well as the safety of biotech crops.”

U.S. Trade Representative (USTR) Rob Portman and U.S. Agriculture Secretary Mike Johanns released a joint statement on the preliminary report stating that the EU moratorium was found to be inconsistent with WTO rules.

“The facts on agricultural biotechnology are clear and compelling. It is a safe and beneficial technology that is improving food security and helping to reduce poverty worldwide," said Portman. "We believe agricultural biotechnology products should be provided a timely, transparent and scientific review by the European Union, and that is why Canada, Argentina and the United States brought the case in the first place."

According to the USTR, the EU ban on biotech crops have cost U.S. producers more than $300 million a year in lost sales because many U.S. agricultural products, including U.S. corn, were effectively barred from entering EU markets.