The government is on a collision course with Brussels and consumer groups over EU plans to introduce stringent new labelling requirements for foods containing or derived from, GMOs.

Under proposals drawn up by EU food safety commissioner David Byrne and agriculture commissioner Franz Fischler, GM derivatives would have to be labelled, whether or not the final products contain genetically modified DNA.

DEFRA denied press reports that it had bowed to pressure from the DTI and Tony Blair to reject the proposals and said it had followed the advice of the FSA.

The Food Standards Agency defended its decision to reject the proposals on the grounds they were prohibitively expensive, open to abuse and impossible to enforce.

A spokesman said: "There are significant problems around traceability and enforcement. The equipment just isn't up to the job."

Current provisions requiring labels on products with a GM content of 1% or above are by contrast "practical".

The FSA is pushing for the introduction of a GM-free' label on a small range of products for which it is possible to provide complete traceability.

Consumers' Association deputy director Kim Lavely said the FSA had "let consumers down" by voting for a "much weaker option".

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