Canada afraid to upset U.S. with GM labels

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Published: November 21, 2002

American hostility to the idea, and Canada’s fear of falling out of

step with the United States, are why Canada should not adopt mandatory

labelling of genetically modified food, says the federal government.

An Agriculture Canada statement on the labelling issue, tabled in

Parliament in early November without public announcement, insisted that

it is best left to the industry to decide whether to label for GM

content.

The department conceded that markets, including the European Union and

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Japan, are moving toward demanding mandatory product labels, but

Canada’s biggest customer is not.

“The adoption of mandatory labelling system by Canada could have a

significant impact on its trade relationship with its largest

agricultural trading partner, the United States, which does not support

mandatory labelling of biotechnology-derived foods,” said the

departmental response.

“Not only is the U.S. Canada’s largest agri-food export market but

Canadian agri-food industries and markets are highly integrated with

those of the U.S.

“A disjointed approach with the U.S. on voluntary versus mandatory

labelling could place both trade and investment at risk.”

For Council of Canadians biotech campaigner Nadge Adam, it was the

most blunt government admission yet that the North American Free Trade

Agreement has ended Canada’s ability to develop independent domestic

policy.

“It is an admission that because of free trade, we’re not able to do a

simple domestic policy decision like decide whether and how to label

products,” she said. “Yet all through the free trade debate, the

government insisted we would always be able to make our own domestic

policy. It’s disgusting.”

Some trade officials have warned that a mandatory labelling regime in

Canada likely would be challenged by the U.S. as a new trade barrier

that contravenes NAFTA rules.

In its report, the government said it continues to support voluntary

labelling and will help fund research that continues to assess

long-term health and environmental consequences of GM production.

But Adam argued that it will be impossible to do long-term studies on

the health impacts of sustained GM food consumption because without

labels, it is impossible to tell who is eating GM products and how much.

“How can you do post-market surveys if you can’t identify the product

in the market? It doesn’t make sense.”

Agriculture Canada said decisions about whether to label for customer

demand, whether to segregate products and develop identity-preserved

systems are marketing decisions and not health and nutrition decisions,

since there is no evidence that GM products are different from

conventional products.

“A voluntary labelling system will allow commodity organizations and

companies to do their own analyses, make their own business decisions

and develop their own strategies based on their buyers’, and ultimately

consumers’, requirements.”

The department also said a mandatory system would add costs throughout

the Canadian food system that would put business at a disadvantage when

competing with products from countries that do not require labels.

“On the other hand, as food exporters Canadian agriculture and

agri-food companies must be sensitive to a range of constantly changing

customer preferences,” it said. “There are buyers in international

markets who in response not only to their respective regulatory

environments but to their customers’ demands, want products to be

differentiated based on whether the ingredients are or are not derived

from biotechnology.”

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