USA: January 29, 2003
WASHINGTON - The Bush administration should end weeks of speculation and announce it is filing a complaint against the European Union for prohibiting the import of new genetically modified goods, a key Senate Republican said this week.
Sen. Charles Grassley of Iowa, who chairs the Senate Finance Committee overseeing U.S. trade policy, told reporters that it was now time for the group of federal agencies weighing the complaint "to get off its duff and make a decision." For the past four years, the EU has had a moratorium on approving new biotech goods, including foods and pharmaceuticals.
The U.S. corn industry complains it is losing at least $300 million a year in sales to the EU as about one-third of the U.S. corn crop is genetically modified. Grassley is from a major corn-producing state.
Although the U.S. government says approved biotech foods pose no risk to humans, EU consumer groups have expressed concern about long-term health and environmental issues.
Craig Thorn, of DTB Associates, a Washington-based agricultural consulting firm, said he had been told that top Bush aides would try to meet Tuesday to decide whether the WTO complaint would be filed. Thorn made his remarks at a seminar for U.S. corn growers.
But a U.S. Department of Agriculture official told Reuters he knew of no meetings planned for this week.
RANGE OF ISSUES
Mid-level Bush administration officials, according to government and industry sources, have recommended that the United States file a WTO complaint and U.S. Trade Representative Robert Zoellick has spoken forcefully in favor of taking action.
But a range of issues, including the need for the United States to maintain strong ties with the EU before a possible war with Iraq, have been a factor in the administration's decision-making, sources have said.
In his remarks to reporters, Grassley expressed concern that the administration's consideration of a trade case against the EU aspect could be taking a back seat to other issues.
EU Trade Commissioner Pascal Lamy has urged Washington not to file a WTO case, saying it would be counterproductive because the EU is already moving toward lifting its moratorium.
But U.S. officials have questioned the EU's commitment to opening its market to new biotech goods. And recently, those officials have accused the EU of discouraging African countries from accepting biotech food aid from the United States.
Rep. Bill Thomas, the California Republican who chairs the House Ways and Means Committee, this week told reporters of "very subtle threats that have been carried out by the EU in the recent drought situation" in Africa.
Thomas said he was trying to find "some smoking guns" to help substantiate those threats.
EU Trade Commissioner Pascal Lamy has denied either the EU or individual member states have made their aid for African countries contingent on those nations banning genetically modified crops. (Additional reporting by Doug Palmer).
Story by Richard Cowan
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