EU seen enabling US soybean imports from December

Thu Nov 26, 2009 10:21am EST

* Industry groups expect approval of GMO maize type in days

* Approval will enable large U.S. soybean sales to EU

By Michael Hogan

HAMBURG, Nov 26 (Reuters) - The European Union is expected to approve imports of a maize type containing genetically-modified organisms (GMOs) in coming days, two leading EU industry associations said on Thursday.

This could enable the resumption of large scale European imports of U.S. soybeans and soymeal as early as December.

EU imports of soybeans and soymeal from the U.S. for animal feed are at a virtual standstill because of the EU's zero-tolerance rule on imports with traces of GMOs which have not yet been approved in the bloc. [ID:nLM636606]

Two industry associations told Reuters they expect the EU Commission in coming days to make a critical approval of imports of the GMO maize type MIR604, which would open the door for a rapid resumption of imports of soybean and soymeal from the U.S.

"It looks as though we could achieve a last minute solution," said Klaus-Dieter Schumacher, chairman of the market section of the European grain and oilseeds trading association Coceral.

"We expect that the EU will approve the MIR604 in the next few days which would mean imports from the U.S. could again resume." Shipments could resume as soon as December if the EU gave approval in coming days, he added.

A Commission official said a decision was possible by next week.

More than 200,000 tonnes of U.S. soy were denied entry to EU ports in past months as they contained tiny traces of four GMO maize types still not approved by the EU such as dust from ships and trucks which previously transported GMOs.

In late October the EU approved imports of three of the GMOs maize types, therefore solving the problem of imports of other grains which contained tiny traces of the maize.

On Nov. 20, EU ministers failed to make a decision on imports of the fourth type in the issue, MIR604, from Swiss group Syngenta (SYNN.VX), which is still blocking large scale U.S. imports.

OPTIMISM

EU law allows the Commission to approve GMO imports if ministers fail to agree and such a decision is now expected.

"We are optimistic the EU Commission will approve imports in a matter of days," said Petra Sprick, chief executive of German oilseed crushers' association OVID.

"This would open the door to large U.S. imports in the rest of the season which would mean we would come away from this with only a black eye from delayed deliveries."

Schumacher said it was essential the Commission made a rapid decision to permit imports of millions of tonnes of U.S. soybeans and meal urgently needed by the European animal feed industry.

Sprick said it was essential the EU changed its approval process to prevent a repeat of the disruption to supplies to oilseed crushers.

If more GMO types are approved in the U.S. the same problem with low level traces could occur next year, she said. (Editing by James Jukwey) ((michael.j.hogan@thomsonreuters.com Reuters messaging: michael.hogan.reuters.com@reuters.net +49 40 419 03 4275))

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