EU Food Prices Could Rise Under New GM Rules

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EU Food Prices Could Rise Under New GM Rules

 

BRUSSELS (Reuters) - Europe's food industry lobby said on Friday

that food will become more expensive if new EU rules on labeling

genetically-modified (GM) goods are adopted, increasing resistance

to a law also criticized by U.S. firms.

 

The President of the EU's food and drink industry lobby group

(CIAA), Jean Martin, said current draft legislation on the labeling

and traceability of GM food would create extra costs for companies

in non-GM goods.

 

" There's a risk (of prices rising) if Europe insists on having GM-

free goods, " the Frenchman told reporters.

 

The European Commission hopes the proposal will end a four-year ban

on new GM food which the United States has threatened to challenge

in the World Trade Organization (WTO).

 

Martin also wants the moratorium lifted and supports consumer choice

on the controversial issue. But he said labeling should be based on

whether genetically-modified organisms (GMOs) can be detected in the

final food product instead of catch-all labeling rules.

 

Under the proposals which EU farm ministers provisionally agreed in

November 2002, all food and feed containing 0.9 percent of

authorized GMOs would be labeled.

 

They set the labeling threshold for the accidental presence of

authorized GMOs in food at 0.5 percent. The European Parliament is

expected to debate this proposal in the first half of 2003, with

final adoption hoped for the end of the year.

 

Martin said the planned procedure for checking the presence of GMOs

in food will be cumbersome and expensive. This is because it is

based on documents stating there are no GMOs present at every stage

of the supply chain rather than a laboratory test.

 

" We're not against traceability, we're against basing labeling on a

paper trail, " said Martin, adding that the system is open to fraud.

Environmental organization Greenpeace rejects all these concerns and

says the new system will be cheaper.

 

" Once the European traceability system is put in place, costs will

decrease as the scattered supermarket controls will be harmonized, "

said Greenpeace EU Policy Director for Genetic Engineering, Lorenzo

Consoli.

 

U.S. companies have also said the new system will be cumbersome and

expensive and could create a barrier to trade even if the European

market for GM goods is opened.