Canada last week ended its World Trade Organization challenge of European protectionism that has blocked access for Canadian genetically modified canola since the mid-1990s, opting instead to keep talking with the Europeans.
In return for Canada dropping its six-year WTO battle, the European Union agreed to twice-yearly meetings with Canada to discuss biotechnology issues.
“This dialogue is aimed at an exchange of information that would contribute to avoiding unnecessary obstacles to trade,” the EU said in a statement issued in Brussels. “The EU is not expected to modify its current regulatory regime on biotech products, which was never subject to WTO challenge in itself.”
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Canadian agriculture minister Gerry Ritz promoted the agreement as a reopening of the European market.
“Reopened access to the European communities means Canadian farm families will have more buyers bidding on their canola.”
In Winnipeg, Canadian Canola Growers Association president Brian Chorney predicted an early resumption of sales, disrupted after Canadian farmers began to grow genetically modified canola in the mid-1990s.
“We are optimistic that Can-adian canola seed will begin entering the EU, especially for the biodiesel market.”
But while other industry leaders also welcomed the announcement, they were more cautious in predicting an actual resumption in sales and trade.
“We support the government in this because the Europeans have approved the three applications we have made,” said JoAnne Buth, president of the Canola Council of Canada.
“This decision ends the legal proceedings and opens up a dialogue and that is very important. But despite the approvals in the regulatory system, no product has moved. The Europeans have a regulatory system and then a political level.”
She said the EU has historically had difficulty convincing all its member countries to follow union-wide rules.
“We’ll see what happens when our next file is submitted,” she said July 17. “On the science side, they are following the rules but then it goes to the political side and there it becomes very unpredictable.”
Buth said Canada’s decision to end the dispute resolution process “does not preclude it from launching another case if this turns out not to create real access.”
Trish Jordon at Monsanto Canada took a similar wait-and-see attitude.
She said the company had a GMO trait approved but that has not yet produced real market access.
“It makes it very frustrating for Monsanto or other exporters because they see that the rules are one thing but getting product moving is another,” she said.
Price, product availability and competitor suppliers also will be factors in whether sales are made.
Six years ago, Canada, the United States and Argentina filed complaints at the WTO alleging that the EU was not following science-based trade rules when it rejected or delayed applications for approval of GM seed for import.
In 2003, the WTO dispute settlement body ruled against the EU on three counts.
Discussions began on how the EU would implement the ruling.
As approvals began to happen, Canada decided to drop the dispute.
The EU statement said the bi-annual meetings with Canada would be used to discuss GM products in the regulatory pipeline, legislation that affects the area, trade issues and “any biotech-related measures that may affect trade between Canada and the EU, including measures of EU member states.”
