The US, Canada and Argentina launched a legal challenge against the EU in May 2003. They claimed that EU measures to protect consumers and the environment from the risks posed by GM food and crops were blocking trade in GM products.

Initial analysis of the report shows that despite claims of victory by the US government and the biotechnology industry, the US-led coalition failed to win many of their arguments against Europe.

However, the WTO ruled that national GMO bans are illegal and it is likely that countries with bans in place will be put under renewed pressure to lift them.


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Friends of the Earth Europe - Press release
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 http://www.foeeurope.org/press/2006/AB_28_Feb_leaked_report.htm

Leaked report: U.S. misled the world on biotech foods "victory"
WTO ruling does not prevent countries from restricting or banning GM foods

BRUSSELS (BELGIUM) / WASHINGTON DC (US) 28 February 2006 - Friends of the Earth International made available online today a confidential World Trade Organization ruling on the trade dispute on biotech, or genetically modified (GM) foods. [1]

The 1000-page report, which was distributed earlier this month only to the countries involved in the dispute, was leaked to Friends of the Earth, which published today February 28 a preliminary analysis in the briefing 'Looking behind the US spin'. [2]

The leaked report reveals that:

* despite claims of victory by the US Administration and the biotechnology industry -widely reported in the media in February 2006- the three countries that started the trade dispute against the European Union (US, Canada and Argentina) failed to win most of their arguments;

* the World Trade Organization (WTO) did not rule on two of the most important questions, namely whether GM foods are effectively the same as non-GM foods and if they are safe.

"The WTO ruling is not a victory for the US administration and the biotech giants. Countries around the world should continue to enforce tough legislation protecting their citizens and the environment from the risks of genetically modified crops," said Juan Lopez, GM Campaign Coordinator of Friends of the Earth International.

According to Friends of the Earth International the WTO is not and should not be the appropriate body to deal with conflicts between trade rules and environmental protection since it ignores the internationally recognised 'Precautionary Principle' and considers only trade principles.

The leaked WTO report argues that:

* Europe's 4-year moratorium on GM Organisms (GMOs) only broke trade rules because it caused "undue delay" in the approval of new GM foods. The WTO dismissed eight other complaints in relation to the moratorium, and did not recommend any further action, since the moratorium ended in 2004.

* There was also an "undue delay" in the EU's approval procedures for over 20 specified biotech products. However, eleven other claims of the complainants related to the product-specific EU measures were dismissed by the WTO Panel.

* National bans by EU member states broke trade rules because the risk assessments used by the countries in question did not comply with the WTO requirements;

"This is the report that the WTO didn't want the public to see. It reveals that the big corporations that stand behind the WTO failed to get the big win they were hoping for. Free trade proponents needed a clear victory in this dispute to be able to push governments in the EU and the developing world to accept genetically modified food. They failed and now is the time to build a consensus that the WTO, with its business-only agenda, is the wrong place to decide on what people eat and how we protect our environment." said Adrian Bebb, GMO campaigner for Friends of the Earth Europe in Brussels.

Friends of the Earth Europe today launched a cyber action  http://www.bite-back.org/objection/our_food.php urging the public to call on their Governments to reject the WTO as a forum to decide on environmental trade disputes and to support the right of countries to ban GMOs.

For more information contact:
Juan Lopez, Friends of the Earth International GM coordinator, Tel: +34-6-25980582 (Spanish mobile number)
Adrian Bebb, Friends of the Earth Europe GMO expert, Tel: +49 1609 490 1163 (German mobile number)
David Waskow, Friends of the Earth US Tel: + 1 202 492 4660

Notes to editors:

[1] The WTO report is available online in two parts at: www.foeeurope.org/biteback/WTO_decision.htm

[2] The Friends of the Earth preliminary analysis in the briefing 'Looking behind the US spin' is online at www.foeeurope.org/publications/2006/WTO_briefing.pdf