Burghardt bid to avert trade war

Date: 30/04/03

WASHINGTON appears to be gearing up for another full-blown trade war with Brussels over genetically modified (GM) crops.

The head of the European Commission delegation in the US, Günter Burghardt, has written to Dennis Hastert, speaker of the House of Representatives, suggesting that a five-year de-facto moratorium on approving new GM crops in the EU could end this summer.

Burghardt insists that any move by America to trigger a World Trade Organization (WTO) dispute procedure would be counter-productive. The effects of a legal challenge might prompt European consumers to reject US food products, he warns.

It would also deliver "a further - possibly fatal - setback" to Europe's biotechnology industry, he adds.

In his letter, Burghardt also denies that the EU moratorium had protectionist motives and rejects suggestions that the Union fuelled southern African hostility to American GM food aid.

According to reports, the Bush administration might take at least a first step in a legal challenge by requesting WTO consultations as soon as the end of this month.

Canada and Argentina have indicated they would like to be co-complainants, while Australia and Mexico have said they would join as third parties.

Washington appears to be gearing up for another full-blown trade war with Brussels over genetically modified (GM) crops.