ASA President David Erickson announced today that the American Soybean Association is extremely concerned that labeling proposals being considered by the European Union (EU) requiring identification of ingredients derived from genetically modified crops could create non-tariff barriers to U.S. exports to the EU. "ASA has led a group of 26 U.S. agricultural organizations urging Agriculture Secretary Dan Glickman and U.S. Trade Representative Charlene Barshefsky to strongly consider the major impact such proposals have on marketing costs and the ability of U.S. producers and processors to compete for access to European markets," Erickson said.

The European Commission is considering adoption of new regulations and interpretation of existing regulations to define when and how foods that may contain ingredients derived from plant biotechnology should be labeled. A paper advanced by EU Agriculture Commissioner Franz Fischler could require labeling of all raw materials and products containing genetically modified organisms (GMOs) imported into and processed in the EU, and mandate segregation of GMO crops and products from the farm gate to the consumer.

ASA’s Erickson said, "We are extremely concerned that implementation of the Fischler proposal would result in major market disruptions, high price discounts to U.S. farmers, and could potentially restrict access for U.S. agricultural exports to the European Union." Last year some U.S. soybean farmers planted for the first time seedstock that was improved through biotechnology. The message to Secretary Glickman and Ambassador Barshefsky precedes meetings between Administration officials and Commissioner Fischler in Washington on Monday, June 16 to discuss this and other issues.

ASA considers labeling of foods and raw materials derived from plant biotechnology which scientific and regulatory authorities have determined to be substantially equivalent to conventional products in safety, nutrition, and composition, to be inconsistent with the provisions of the Uruguay Round Agreement which the EU has endorsed.

"Discriminatory labeling requirements would subject the European Union to challenges in the World Trade Organization (WTO) for creation of non-tariff barriers to U.S. and other countries’ exports to the EU. If there is a scientific basis for the protection of human, animal, or plant health, then labeling requirements must be applied in a non-discriminatory manner that minimizes potential trade disruptions," Erickson added.

"We believe some form of voluntary ‘GMO-free’ labeling standards which require scientific verification and do not mislead consumers could be established rather than requiring labeling of products that either contain or may contain GMO ingredients."

Soybeans accounted for 24% of all U.S. crop acres planted in 1996, and represented a farm gate value of more than $16.9 billion. The United States produced 48 percent of the world’s soybean production in 1996. Contributing greatly to the United States trade balance, the value of U.S. soybean and soy product exports in 1996 exceeded $9.1 billion, including $2.34 billion exported to the European Union.