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FOR IMMEDIATE RELEASE

NCGA, USGC Pleased U.S. Pursuing Case Against EU Moratorium
Say moratorium has cost U.S. growers $300 million annually in exports

May 13, 2003

Contact: Tracy Taylor Grondine, NCGA, 202.628.7001
             Cheri Johnson, USGC, 202.789.0789

WASHINGTON (May 13, 2003)—The National Corn Growers Association (NCGA) and the U.S. Grains Council (USGC) welcome the decision today by the Bush administration to file a case in the World Trade Organization (WTO) challenging the European Union's (EU) five-year moratorium on genetically modified foods. U.S. Trade Representative (USTR) Robert Zoellick and U.S. Department of Agriculture (USDA) Secretary Ann Veneman announced the decision in a joint news conference at USDA.

“We are pleased the administration has pursued a case in the WTO,” said NCGA President Fred Yoder. “The moratorium is illegal and continues to lock out corn exports from the United States.”

Don Jacoby, chairman of the U.S. Grains Council, joins Yoder congratulating the administration on taking this bold move. “The outcome of this is of vital interest to the U.S. feed grain producers and their export customers around the world,” Jacoby said.

"The EU's persistent resistance to abiding by its WTO obligations has perpetuated a trade barrier unwarranted by the EC's (European Council) own scientific analysis, which impedes the global use of a technology that could be of great benefit to farmers and consumers around the world," Zoellick said at the press conference.

"With this case, we are fighting for the interests of American agriculture. This case is about playing by the rules negotiated in good faith. The European Union has failed to comply with its WTO obligations," continued Veneman.

Since 1998, U.S. corn exports have diminished from a high of 1.56 million metric tons to approximately 23,000 metric tons last year, according to the Foreign Agriculture Service. It is estimated the moratorium has cost U.S. corn exports $300 million a year.

“After countless studies the EU admits there is no scientific basis to the moratorium, yet they continue to block shipments of U.S. corn derived from biotechnology,” said Yoder. “It is irresponsibility at its best, blatant protectionism at its worst.”

This afternoon, Veneman and Zoellick joined with House Speaker Dennis Hastert (R-Ill.), Senate Finance Committee Chairman Charles Grassley (R-Iowa) and other senior congressional leaders at a press conference on the subject at the U.S. Capitol.

“I must congratulate President Bush and Ambassador Zoellick for putting American farmers and sound science first by challenging this illegal trade ban on genetically modified foods before the WTO,” Hastert told reporters. “There’s no question in my mind that the European Union’s protectionist, discriminatory trade policies are costing American agriculture and our nation’s economy hundreds of millions of dollars each and every year.”

“We are thankful to President Bush, Ambassador Zoellick, Secretary Veneman, Speaker Hastert, Chairman Grassley, and other administration and congressional officials for their tireless efforts on this issue,” Yoder said. “They have been true champions to the cause of free trade and U.S. growers.”

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The National Corn Growers Association mission is to create and increase opportunities for corn growers in a changing world and to enhance corn's profitability and usage. NCGA represents more than 32,000 members, 25 affiliated state corn grower organizations and hundreds of thousands of growers who contribute to state checkoff programs.



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