Europe’s biotech proposal rattles U.S. grain shippers

The European Commission has proposed amending its approvals process for imported commodities with biotechnology traits.

   U.S. grain producers are concerned that a Wednesday proposal by the European Commission to amend its approvals process for imported commodities with biotechnology traits will upset their trade with Europe.
   Previously, those traits have been fully approved by EU food safety officials.
   “Today’s decision from the European Commission is bad for the EU’s own livestock producers and feed industries, will make those industries less competitive, and is bad for EU consumers who ultimately will pay more for the meat they put on their tables,” said American Soybean Association Vice President Richard Wilkins in a statement. 
   “The EU feed and livestock industries have reacted very negatively to the EU Commission’s action, warning that it would make livestock production uncompetitive and disrupt trade into and within the EU market. Currently, the EU feed industry imports 75 percent of the soymeal it requires for livestock uses,” he added.
   U.S. officials also expressed concern whether the commission’s action runs afoul of Europe’s trade obligations under the World Trade Organization and could threaten the negotiations of the Transatlantic Trade and Investment Partnership (TTIP) between the United States and European Union. 
   U.S. Trade Representative Michael Froman said the Obama administration is “very disappointed” with the European Commission’s proposal.
   “At a time when the U.S. and the EU are working to create further opportunities for growth and jobs through the Transatlantic Trade and Investment Partnership, proposing this kind of trade restrictive action is not constructive,” said Froman.
   In 2006, a WTO dispute settlement panel found that EU member-state bans on import and cultivation of genetically engineered products violated WTO rules, because the safeguards were not based on risk assessments. Since then, the United States has been working to normalize agricultural trade with the European Union.
   The EU proposal now must be adopted by its 28 member states and the EU parliament through the co-decision process. A timeline for adoption has not been set.