www.checkbiotech.org ; www.raupp.info ; www.czu.cz

European Union ministers Thursday failed to agree on how to ensure the
safety and authorization of new genetically modified seeds. "We are in the
beginning of an interesting debate," said Austrian Agriculture Minister
Josef Proll, who was chairing the meeting. "We will continue with
discussions" at other meetings. "There is no straight yes or no to such a
sensitive topic", March 2006.

The E.U. has been gradually opening its markets to genetically modified
food for nearly two years. But the market remains tough for companies such
as Monsanto Co. (MON) and Syngenta AG (SYNN.VX) due to a complex web of
national rules, E.U.-wide regulations, and a lengthy process for getting new
types of GMOs approved for sale.

"There seems to be growing discontent amongst member states over the
procedures and handling of GMO approval," said Daniel Kapp, spokesman for
the Austrian Agriculture Ministry. Austria, a leading opponent of biotech
foods, is chairing Thursday's meeting as the holder of the E.U.'s rotating
presidency.

The issue pits environmentalists and some national governments, which are
fighting the products, against the Brussels-based European Commission which
promotes them as a key test of the E.U.'s willingness to adopt new
technologies.

Biotech food also is a contentious trade issue. The World Trade Organization
last month ruled that the E.U., long the most-resistant region in the world
to biotech food, had violated trade agreements for years by making it too
difficult for new types to be approved. The WTO also found that individual
E.U. countries' bans on certain genetically modified crops also violate
international trade rules.

The Commission Friday will issue a report backing away from trying to
establish E.U.-wide laws on segregating genetically modified crops, even
though it fears some member countries are imposing unfairly difficult rules.
The Commission says the situation for each crop in each country is too
complex for now to make one standard rule, though it could revisit the issue
later.

Thursday's ministerial debate saw the yes and no camps entrenching their
positions. Spain, Luxembourg, Germany, the Czech Republic, Italy, Ireland,
Latvia, Malta, Portugal, Hungary and Poland are all cold on GMOs, said a
diplomatic source. "Basically half the member states are hesitant," an E.U.
diplomat said.

The U.K., Sweden and the Netherlands "vote regularly in favor of GMOs," the
diplomat said.

The decision making process which sees the Commission make the final choice
on GMOs is coming under attack. Under the rules, the Commission can approve
seed applications if governments can't reach a unanimous decision. Most
recent approvals have taken place in this way.

"I am aware of the criticism," said Environment Commissioner Stavros Dimas
at a press conference. "As with any large organization, we are still finding
our feet."

Environmentalists remain unhappy with the Commission's approach. "Our view
is that they are very pro-GMO and they are very much using bio technology as
an element of future economic growth in the E.U.," said Helen Holder of
Friends of the Earth. Governments opposed to GMOs are expected to raise
their concerns, said Holder, while others could just make basic statements.

The biotech industry is worried about the debate. Government opposed to
genetically modified goods "will try every possible means to circumvent the
rules to block the approval of safe new GMO products," says EuropaBio, The
European Association for Bioindustries.

When the Commission approves new drugs and chemicals, no one protests,
Europbio says. When it approves biotech crops, however, its authority is
questioned. Governments "are effectively trying to block the growth in
acceptance of biotech crops in Europe, and deny European consumers and
farmers the choice to use labeled, safe products," the association said in a
statement.

[www.marketwatch.com]

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