The dispute between the United States and the European Union about the lack of new approvals for genetically modified (GM) crops in Europe since mid-1998 has entered a new phase. The issue was reignited last month, when the United States officially requested World Trade Organisation (WTO) consultations with the European Union.

Biotech industry representatives on both sides of the Atlantic agree on the need for a quick resolution. "This is a matter for governments," Simon Barber of EuropaBio, the European Association for Bioindustries, told The Scientist, "but for everybody's sake, we would like to see the issue resolved quickly."

Lisa Dry of the US Biotechnology Industry Organization was more direct, commenting, "The illegal moratorium [in Europe] has cost US farmers in excess of $1 billion in terms of lost grain exports... The Europeans have continued to present new non-science based hurdles at every juncture… We have no choice but to support our government's actions to take this matter before the WTO for dispute resolution."

But the European Commission does not agree that any illegal moratorium is in place. The commission's most recent press release, issued on June 19, summarized its view that the EU's GM authorization system is proceeding in accordance with WTO rules. The commission pointed out that "the EU, just like any WTO member, has a legitimate right to establish a regulatory regime to ensure that GMOs are only put on the market on the basis of a careful assessment of risks, appropriate control and monitoring measures, and proper information to consumers."

It added, "All GMO applications are being assessed on the basis of the new EU regulatory framework which entered into place in October 2002. The procedures are running as expected." The lack of new approvals since 1998 is a consequence of concerns held by some member states of the European Union, which under EU rules are able to block new approvals on that basis. No new authorizations are expected before fall 2003.

On June 23, however, President Bush gave a strong indication of the United States' very different viewpoint. Speaking at the Bio 2003 meeting in Washington, DC, the president told delegates, "Acting on unfounded, unscientific fears, many European governments have blocked the import of all new biotech crops."

He also linked the European Union's position with famine in Africa, claiming, "Because of these artificial obstacles, many African nations avoid investing in biotechnology, worried that their products will be shut out of important European markets. For the sake of a continent threatened by famine, I urge the European governments to end their opposition to biotechnology." In immediate response to these comments, a European Commission official declared, "The suggestions made by the United States are simply not true."

President Bush can expect support from the African Biotechnology Stakeholders Forum. It recently issued a statement urging the European Union to consider the global impact of its GM legislation, especially on developing nations. The statement was specifically focused on new EU proposals for the labeling and traceability of GM foods, which will get a second reading in the European Parliament next week, and may complicate matters further. The EU Environment Committee has proposed a variety of amendments to this legislation, which Barber described as "very negative," because they would impose further regulatory burdens on an industry already straining under regulatory demands.

Barber pointed out, "Science-based safety regulation is essential, but the regulatory system [in Europe] is becoming so complex and costly it is going to prevent some companies from putting forward submissions." He added that although GMO-related science "was flourishing in Europe, it has now been pulled back in a way that is damaging to the plant science community."

Next week's European Parliament vote on the traceability and labeling proposals will be the next twist in a long tale. An initial WTO ruling on the complaint from the United States (and some other countries) is not expected until spring 2004.