Deal Struck to Regulate Genetically Altered Food

Resolving a standoff over “Frankenstein foods” and free trade, 138 countries on Saturday produced the first international agreement concerning trade in genetically modified agricultural products, after an attempt a year ago failed.

The U.N.-sponsored “Biosafety Protocol,” reached in Montreal, requires exporters to label shipments that may contain added genetic material with the phrase “May contain living modified organisms,” but it does not force them to separate conventional and altered crops.

It also sets the stage for countries to reject genetically modified foods without scientific evidence of harm but specifies that the new safety rules will coexist with free trade regulations of the World Trade Organization.

The five-day conference dealt with growing health and trade worries sparked by the increase in genetically modified commodities--foods that use genes from other organisms to help crops ward off pests or to grow faster. In the United States, about 50% of soybeans and cotton and 35% of corn are genetically engineered.

In addition, biotechnology companies are experimenting with trans-species techniques: One company has engineered a type of rice with vitamin A taken from daffodils, which could prove important in curing night blindness in people living in developing countries.

Although the companies that sell modified goods insist these products have been tested and are safe, more and more countries and consumers are demanding that such foods be clearly labeled so that buyers can decide for themselves. But some exporters fret that governments will use safety concerns as another trade barrier against foreign farm goods.

The new agreement was reached early Saturday, after the U.S. and its five allies in the negotiations threatened to abandon the talks once again this year. But a last-minute compromise at 5 a.m. struck a delicate balance between desires for free trade voiced by the U.S.-led contingent and concerns about the so-called Frankenstein foods in Europe and developing countries.

The conference’s president, Juan Mayr of Colombia, broke into tears when he announced the successful deal early Saturday, and all sides seemed satisfied.

“On balance, we think this is an agreement that protects the environment without disrupting world food trade,” said David Sandalow, assistant U.S. secretary of State for oceans, environment and science.

The agreement was applauded by environmental activists and biotech industrialists.

“It’s a very positive step forward in protecting the environment and consumers,” said Michael Khoo, a Greenpeace activist who helped organize about 500 demonstrators to rally in the subzero Montreal weather last week. “We won almost all the points we were pushing for.”

The Global Industry Coalition, representing 2,200 biotech companies, said it too was encouraged by the outcome.

“The protocol provides an incentive for continued investment to develop innovative products,” a spokesman said.

The Biosafety Protocol must be signed by 50 countries before taking effect, a process that could take two to three years. It creates a central clearinghouse for information on newly developed products and requires exporters to include the phrase about “living modified organisms” in shipping documentation for genetically altered foods.

The European Union had demanded that any modified foods be shipped separately, but the U.S. and Canada argued successfully that it would cost billions to set up parallel systems and persuaded the other side to settle for clearer labeling.

Since the previous round of talks collapsed in Cartagena, Colombia, in February, feelings toward genetically altered foods among consumers in the U.S. and Canada have changed, negotiators from those countries said. That led their bloc--which also included Australia, Argentina, Chile and Uruguay--to accept stronger changes in the protocol than they preferred.

“There has been a big change in attitudes,” said Canada’s environment minister, David Anderson. “There’s been a big increase in consumer concerns related to health and safety, and that did influence the talks.”

In response to concerns, multinational companies such as Frito-Lay Inc., Seagram Co., baby-food maker Gerber Products Co. and frozen French fries-maker McCain Foods Ltd. have disavowed genetically modified products in the last year.

Environmentalists have also argued that ecological and health concerns have taken a back seat to economics at international summits, and demonstrators made their point vocally--and at times violently--at the recent WTO meeting in Seattle.

“I think it’s really an important new era for the environment,” said Anderson, who hosted the talks. “It’s the first time trade and the environment have been considered equals. Environment is no longer the country cousin when it comes to international issues.”