EU Blocks Imports of Monsanto's GE Canola

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EU Nations Block Imports of Monsanto GM Oilseed Rape (Update3)

June 16 (Bloomberg) -- European Union governments blocked the import
of a gene-modified oilseed rape made by Monsanto Co., undermining
efforts to defuse a trans-Atlantic trade row over EU biotech-food
restrictions.

The move by national environmental regulators comes a month after the
European Commission, the 25-nation EU's trade authority, allowed the
import from the U.S. and elsewhere of a gene-altered corn type made by
Switzerland's Syngenta AG, the world's biggest maker of crop
chemicals. It was the region's first biotech food approval since 1998.

The commission pledged to speed up EU approvals of about 30 other
requests, including several by Monsanto, the biggest producer in a
global biotech crop market that had sales of as much as $4.75 billion
last year. National ministers now have to rule on the oilseed rape or,
as they did with the Syngenta corn, let the commission decide.

``It's not a very encouraging result,'' said Ewa Hedlund, a
spokeswoman for the Brussels-based commission. Twelve countries voted
against and four abstained, she said.

The oilseed rape, known as GT73, is resistant to a herbicide made by
St. Louis, Missouri-based Monsanto and would be used in animal feed.
Monsanto spokesman Tom McDermott said the decision to block imports of
oilseed rape, also called canola, is one step in a long process.

``We would hope the Council of Ministers approves the product, because
it has been determined to be safe by the European Food Safety
Authority,'' McDermott said.

WTO Complaint

The U.S., Argentina and Canada, the world's three biggest growers of
gene-modified seeds, have complained to the World Trade Organization
about the EU's restrictions. The curbs affect crops that are modified
to resist certain insects and weed-killing chemicals.

Some EU countries say the products pose threats to the environment and
human health, while the commission says scientific backing for the
products and stricter EU food labeling rules justify an end to the
restrictions.

All countries in the EU have a say over biotech decisions because the
bloc's barrier-free trade rules mean a product sold in one member
nation can be sold in the others.

Opposition

Opposition to the Monsanto oilseed rape by Austria, Cyprus, Denmark,
Estonia, Greece, Hungary, Italy, Lithuania, Luxembourg, Malta, Poland
and the U.K. -- along with abstentions by Germany, Ireland, Slovenia
and Spain -- was enough under EU voting rules to block the approval.
National ministers now have about three months to act.

``It would have been outrageous if such an application had received
clearance from an `expert committee' as it lacks crucial information
and the data is of poor quality,'' said Eric Gall, a Brussels-based
adviser of environmental group Greenpeace. ``The commission should
withdraw the application rather than pushing it forward to satisfy the
U.S. in the WTO case.''

The commission has already asked ministers to approve the import of a
Monsanto gene-altered corn variety for use in animal feed by the end
of June after regulators blocked this in February. A decision on that
request is due June 28-29.

It also plans to ask ministers to endorse the sale of foods made from
that corn type, known as NK603 and tolerant of a herbicide made by
Monsanto. The product is used for foods such as biscuits and
ingredients including starch and oil.

No EU decisions are yet scheduled on any of the more than 10 pending
biotech applications involving plantings, which are more controversial
than imports because of concerns about contamination of conventional
and organic crops.

The commission doesn't plan fast-track approval for the planting of
gene-modified seeds and will focus instead on allowing more imports,
European Environment Commissioner Margot Wallstroem said in an
interview.

To contact the reporter on this story:
Jonathan Stearns in the Brussels bureau jstearns2@bloomberg.net.