EU decision on GMO testing opens door for U.S. rice

By Lisa Shumaker

CHICAGO, Dec 20 (Reuters) - A decision to stop testing U.S. rice for genetically modified traits when it arrives at its destination should help restore trade with the European Union, which has virtually stopped since August 2006, said U.S. rice traders on Thursday.

The EU Standing Committee of the Food Chain and Animal Health made the decision on on Thursday and it could take effect as early as mid-January. [ID:nL20887446]

"It is a good sign. There's been a bit of a pickup in shipments going there," said Neauman Coleman, an analyst and rice broker in Brinkley, Arkansas. "It's all proven to be GMO free. This is another positive step."

The discovery in August 2006 of the LibertyLink trait, developed by Bayer CropScience, a division of Bayer (BAYG.DE: Quote, Profile, Research, Stock Buzz), in commercial supplies triggered a disaster for the U.S. rice industry.

The industry quickly moved to stop planting of the varieties identified as having the GMO trait, which resulted in less than 0.5 percent of this year's crop being affected, according to USA Rice Federation, a trade organization.

"The decision opens the door," said David Coia, spokesman for USA Rice. "Now, another layer of work begins where we have to begin to rebuild the market. This certainly helps tremendously."

A U.S. government investigation was unable to determine how the biotech rice entered the commercial supply chain. The GMO strain has gotten U.S. approval but no GMO rice is authorized for import or sale in the 25-member European Union.

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