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EU vs. US:

WTO Court Case

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On May 13, 2003, the United States announced it would file a complaint to the WTO in order to battle the EU's moratorium on GMO's. Robert Zoellick, the US trade representative to the WTO stated, “The EU has perpetuated a trade barrier which impedes the global use of a technology that could be of great benefit to farmers and consumers around the world.” (Schifferes, May 2003) The US is claiming that the EU is unfairly blocking the sale and distribution of genetically modified organisms in Europe. In addition, the US is challenging the lawfulness of the EU's labeling policy, claiming that genetically modified crops are nutritionally identical to organic food and labeling them puts US GMO's at an unfair disadvantage in the foods market. The US is claiming $4 billion dollars in damages, and if it wins the case, the US will impose retaliatory sanctions (Schifferes, June 2003).

The EU claims that its policies are “in line with WTO rules: it is clear, transparent and non-discriminatory. There is there no issue that the WTO needs to examine.” It believes consumes have a right to know where their food came originated . It is unlikely that the EU will repeal labeling laws, due its massive popularity among the public. However, the EU could compromise its ban on many GMO's, provided some safety concerns are dealt with (Schifferes, May 2003).

The WTO case has currently reached a deadlock. If the US wins the case, the EU will be forced to allow GMO's to enter their market freely. This will have serious economic consequences on European domestic agriculture (Schifferes, May 2003). Since GMO crops have some advantage over other crops, such as Bt's resistance to the European corn borer, GMO's can be grown cheaper or faster than European crops . This court case will undoubtedly shape the EU's agriculture policy in the future, as well as test the durability of its agricultural industry.

 


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