USDA Attache: 5 EU Member States Retain Bans On Biotech Crops

There are seven Member States (MS) commercially producing genetically-engineered (GE) crops, with Spain being, by far, the largest producer. Under the EU policy framework for agricultural biotechnology, MS policy varies greatly. Coexistence frameworks have been set up in most MS or are currently being prepared, and five MS continue to maintain national bans. However, the EU is a major consumer of biotech products, mainly soybean meal imported to feed livestock and poultry, with at least 80 percent of EU soy crush estimated to be genetically engineered. Finally, agricultural biotechnology research in Europe is declining, mainly due to political pressure, according to a U.S. Department of Agriculture attache report posted Wednesday on the Foreign Agricultural Services Web site.

Executive Summary

This report consolidates and updates the annual biotechnology reports prepared in 2006 in individual EU Member States (MS). In the past several years, yield benefits and cost savings of genetically engineered (GE) crops have made them attractive to EU farmers, and the production of biotechnology crops (currently only one corn event) continues to expand in certain Member States. Despite regulatory restrictions and political threat, the area devoted to biotech corn is expected to increase to approximately 110,000 ha in 2009 (mainly located in Spain, the Czech Republic, Portugal, Slovakia and Germany). Under the EU policy framework for agricultural biotechnology, MS policy varies greatly.

Virtually all MS have transcribed EU Directive 2001/18 and implement EU regulations on traceability and labeling. Most MS have set up national coexistence frameworks for biotech and non-biotech crops (Belgium, Czech Republic, Germany, Hungary, Portugal, Romania, Slovakia) or are currently preparing coexistence rules (France, Spain, the United Kingdom). Some MS continue to maintain national bans on genetically-engineered crops (Austria, France, Greece, Hungary and Italy).

The main biotech products used are in animal feed, human food, planting seeds, and the textile industry. They consist of soybeans and products, corn and its derivatives, and cotton. The largest categories of GE products consumed primarily consist of soybean meal, where GE products are estimated to represent 80 to 95 percent, and of corn and corn products (mainly corn gluten feed), in which GE products are estima ted to account for 10-25 percent only. While research in agricultural biotechnology is a stated priority of the European Commission and many MS, in reality, many research scientists have either been forced to drop activities due to political pressure or have moved to institutions (particularly in the United States) where support for such research is undeterred. This reduction in research activities has also translated into a reduction in field trials, which have also suffered from actions of intimidation by activist groups.

Biotechnology Research, Trade and Production

EU BIOTECH AREA GRADUALLY EXPANDING

Since the approval of the first biotech corn event for planting in the EU, Spain has been the country that has most rapidly adopted its use. Prior to its accession to the EU, Romania was a major producer of biotech soybeans. However, since biotech soybeans are not approved for planting in the EU, this ended in 2007 with its accession to the EU. Interest across farming groups in the EU in the use of agricultural biotechnology continues to expand, particularly as the cost of inputs is increasing. This has made the yield benefits and cost saving especially attractive. As a result, the area devoted to biotech crops (currently only one corn event) continues to expand gradually. However, many growers are constrained by restrictions placed in land rental contracts, threats by neighbors, and intimidation by NGO's. See Annex VIII for biotech crop production in EU member states in 2007 and 2008. In several EU member states (Austria, the Czech Republic, France, Germany, Greece and Romania), farmers producing biotech corn must register their fields with government bodies.

The specificity of these registration requirements varies greatly from country to country.

DESPITE POLITICS, EU IS A MAJOR BIOTECH CONSUMER

The main biotech products used in each Member State are in animal feed, human food, planting seeds, and the textile industry. They consist of soybeans and products, corn and its derivatives, and cotton.

The largest category of GE products consumed by Member States consists of soybean meal, which is used in animal feed. The EU-27 roughly consumes 33 million MT of soybean meal annually in animal feed (see EU-27 report E48062 dated 05/30/2008). The bulk of the soybean meal consumed in the EU is imported or produced from imported soybeans, mainly coming from North and South America. GE products are estimated to represent 80 to 95 percent of the total soybean meal used by Member States, i.e., 26 to 31 million MT. Similarly, the EU-27 crushes approximately 14 million MT of soybeans annually, and at least 80 percent is estimated to be GE products, i.e., 11 million MT. However, there is a niche market for non-GE soybeans and soybean meal used in animal feed, mainly for the poultry sector and other animal production undertaken under the Identity Preservation program or geographical indications, or for human consumption for soybeans (such as in baby food). Corn and corn products (mainly corn gluten feed) represent the second largest category of GE products used in animal feed. However, the share of GE products out of total corn consumption is generally estimated to be significantly lower (10-25 percent) than for soybean products. This is mainly due to the fact that the EU-27 does not rely as much on imports of corn and corn-derived products as for soybean products.

EU RESEARCHERS SEEK MORE SUPPORTIVE ENVIRONMENTS:

Research into agricultural biotechnology is a stated priority of the European Commission and many of the Member States. However in reality, many research scientists have either been forced to drop activities due to political pressure or have moved to institutions (particularly in the United States) where support for such research is undeterred. This reduction in research activities has also translated into a reduction in the operation of field trials. For several years, researchers and universities were able to implement field trial activities successfully. However, beginning in 2007, activist groups succeeded in intimidating many research stations and universities into dropping field trial work. As a result, the requests for permits to conduct field trials fell dramatically in 2008. In addition, field trial destructions have continued with little or no response from police and judicial authorities in many areas. See Annex X for a summary of field trials in the EU-27.

The situation and policy issues across EU member states vary greatly. Please see Annex I for an overview of the most important issues currently facing agricultural biotechnology in each member state.

Biotech Regulatory System in the EU-27

EU-27 FRAMEWORK FOR ENVIRONMENTAL RELEASE

Europe's regulatory framework for biotechnology was established with the adoption of Council Directive 90/220/EEC "on the deliberate release into the environment of genetically engineered organisms" and Council Directive 90/219./EEC "on the contained use of genetically modified micro-organisms." The framework was significantly revised by Council Directive 2001/18/EC to strengthen existing rules on the deliberate release of genetically engineered products into the environment. Directive 2001/18/EC is implemented in each EU Member State through national legislation. It sets out procedural guidelines for experimental field trials (Part B Authorization) and commercial introduction into the market (Part C Authorization). Specific measures include:

- environmental risk assessment,

- mandatory post-market (environmental) monitoring,

- mandatory supply of information to the public,

- mandatory labeling and traceability at all stages of placing on the market,

- and the establishme nt of a molecular register.

Authorizations, which can be renewed, are granted for a maximum period of ten years starting from the date when the authorization is first issued. If a GE product reaches the EU market, the applicant is obliged to ensure that post-market monitoring and reporting is carried out according to the conditions specified in the authorization. Council Directive 98/81/EC, amending Directive 90/219/EEC, regulates research and industrial work involving the contained use of genetically engineered micro-organisms. In addition to these Directives, there is a series of EU Regulations which govern the approval and use of genetically engineered products (Note: Unlike EU Directives, EU Regulations do not need to be transposed into national legislation, and therefore are immediately and simultaneously enforceable as law in all EU Member States).

Applications are first submitted to the competent authority in a Member State where the product is to be marketed. The application must clearly define the scope (i.e. for cultivation, for import, etc ), and must also include a monitoring plan, a labeling proposal, and a detection method for the GE product. The national authority informs the European Food Safety Agency (EFSA), and acknowledges receipt of the application within 14 days. After a "completeness check" to ensure all required documentation has been properly submitted, EFSA endeavors to deliver an Opinion within six months.

In practice, the "6 month EFSA clock" can stop at any point to request supplemental information from the applicant. During this time, EU Member States can also comment on the pending application. Once EFSA has completed an Opinion, the Commission has three months to draft a proposal for granting or denying authorization. The Commission's proposal can be approved by a qualified majority vote of the Member States in the Standing Committee on the Food Chain and Anima l Health.