<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2//EN"> <HTML> <HEAD> <META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=iso-8859-1"> <META NAME="Generator" CONTENT="MS Exchange Server version 5.5.2448.0"> <TITLE>Europe's anti-GMO "train has left the station"</TITLE> </HEAD> <BODY> [From today's Investor's Business Daily] Genetically Modified Food Exports: The Latest Battle Of The Trade War Europe's farmers and consumers say health risks are too high. But is trade the real issue? Author: Jim Christie U.S. farmers are getting nothing but grief from Europe where, they say, protectionists have found another cause. There, consumers, farmers and governments are railing against GMOs, genetically modified organism foods, which U.S. farmers produce in abundance. Anti-GMO sentiment in Europe is so harsh, even veteran analysts are stunned. ''To find the Europeans so phobic is alarming, disturbing, confusing,'' said Jeffrey Gedmin, executive director of the New Atlantic Initiative. ''There's just something so irrational, so emotional going on.'' U.S. farmers grouse because their food exports are getting squeezed -hormone-treated beef is banned from Europe - from fear of health risks. But there's no evidence to support such fears. Still, the European Union claims health risks when erecting trade barriers that the U.S. claims are illegal. U.S. farmers stand to get hurt for using genetics to grow better, cheaper crops. How badly? Thirty-five percent of the U.S. corn crop is GMO, and so is 55% of the soybean crop. These markets depend on export demand. But Europe's ban on GMO foods could leave U.S. farmers holding the bag - of a billion bushels of grain. ''If (Europe's) public doesn't want them, they don't have to buy them. No one is disputing that. The issue is whether they should have the choice,'' said Jeffrey Schott, senior fellow at the Institute for International Economics. But the GMO issue has become an important symbol to many Europeans. ''Europeans are resentful, envious and fearful that we can dictate too many things to them and the rest of the world,'' Gedmin said. Even so, U.S. interests shouldn't take it too personally. Europeans also rail against their own GMO research. For instance, U.K. Greenpeace activists were recently arrested for stomping through a trial site of genetically modified maize - a corn-like grain. And the U.K.'s anti-GMO movement isn't limited to the usual green-leaning groups. Prime Minister Tony Blair's cheeky ''New'' Labor Party has a grumpy faction known as ''Labor Against Frankenstein Foods.'' Even the royals are joining in. The Prince of Wales' Web site - with a photo of him as a country gent - asks of GMO-food, ''Is it an innovation we can do without?'' ''We should not be meddling with the building blocks of life in this way,'' Prince Charles answers. Some European policy- makers question the anti-GMO movement. For instance, outgoing European Union Trade Commissioner Leon Brittan on Thursday criticized recent moves in Europe against GMO foods for fear of prompting other countries to raise trade barriers based on health concerns. But Brittan is in the minority. The majority view was summed up by Pascal Lamy, EU commissioner trade designate, at confirmation hearings. There he defended anti-GMO policies. It's easy to see why Europeans are worked up. First, they've had plenty of bad food news recently, including mad cow disease, tainted Belgian dairy products and Coca-Cola's bottling problems. Europeans are in zero-risk mode when it comes to food - even if it limits choice and boosts costs. ''This will effectively shut out some very important U.S. crops from the European market,'' said Dan Griswold, associate director for trade policy studies at the Cato Institute. ''Everything from the European point of view is suspect.'' Second, Europeans remain supersensitive about where they buy their food. Take French farmers. They routinely press the government to protect markets from foreign competition - often successfully. Roadblocks and riots aren't unusual. And just last week, a French farmers union chief was released from jail after he vandalized a McDonald's building site. Supporters and cheese-makers covered his $17,000 fine. Europe talks the free-trade talk, but it's kept food-trade barriers standing even after the World Trade Organization ruled against them. The U.S. isn't oblivious. U.S. Agriculture Secretary Dan Glickman gave a nod to anti-GMO sentiment in a speech recently. But he also set a limit. ''Both sides of the Atlantic must tone down the rhetoric, roll up our sleeves and work toward conflict resolution based on open trade, sound science and consumer involvement,'' Glickman said. ''However, I should warn our friends across the Atlantic that if these issues cannot be resolved in this manner, we will vigorously fight for our legitimate rights.'' That's an empty threat, says Alan Tonelson, a research fellow with the U.S. Business and Industry Council. Europe will take any tariff the U.S. imposes in retaliation, he points out. ''Unless the U.S. is ready to review its whole strategy toward Europe, to make trade-offs between economic and security issues, we have no leverage,'' Tonelson said. ''We may have to accept defeat, mainly because our inattention has let this problem blow up, allowed it to become a major cause celebre in European public opinion,'' he added. Could product- labeling for GMOs appease Europe? Not likely. Anti-GMO moderates there, like the Friends of the Earth, want a five-year moratorium on GMOs. Hard- liners, like Greenpeace, urge a complete ban. In Europe, ''The train has left the station,'' Tonelson said. ''Hysteria has taken over.'' (C) Copyright 1999 Investors Business Daily, Inc. [end] Carl </BODY> </HTML>