EU policy on GMOs : a quick scan of the economic consequences

The cultivation of genetically modified (GM) crops has seen a rapid growth since 1996, especially in North and South America. In the European Union (EU) the cultivation of GM crops is still rather limited. In contrast, the use of GM crops in the EU is rapidly increasing. Over the last years there have been increasing difficulties with the EU import of (GM) food and feedstuffs from major exporting countries. This is caused by the asynchronous EU approval of GM crops, coupled with the operation of a zero tolerance threshold for the presence of GMOs not yet approved in the EU. This policy of the EU has already led to difficulties with the import of raw materials from exporting countries where more GMOs have already been approved or are under development. This report argues that it is likely that in the near future problems will become more urgent. This could negatively affect the EU supply of raw materials and economic position of the European agricultural and food sector