UPDATE 2-USTR Schwab urges EU to hasten biotech approvals

(Recasts, adds industry comments, byline)

By Missy Ryan

WASHINGTON, Jan 29 (Reuters) - U.S. Trade Representative Susan Schwab on Tuesday pledged to watch for proof that the European Union is accelerating approval of new biotech products and ending a delay that has been costly to U.S. exporters.

Schwab declined to specify how long she might be willing to wait before she would ask the World Trade Organization to probe whether the EU is in violation of its ruling that found the 27-member bloc dragged its feet for years in approving new genetically modified food and crops.

"We have been tremendously frustrated at the lack of progress on the biotechnology issue," Schwab, who discussed the issue last week with European officials, told reporters.

"We need to see some progress," she said.

Earlier this month, Schwab's office announced it would give the EU more time to speed up its approval process and comply with the ruling.

The case has complicated trans-Atlantic ties for years, stunting export opportunities for U.S. farmers, who now rely on biotechnology for a huge share of farm production.

GMO crops, designed to withstand weed-killing agents or to repel pests, are commonly used in the United States, but European consumers have resisted them.