BUENOS AIRES, Argentina, June 14 (Reuters) - Genetically modified (GM) soybean seeds have made Argentine farmer Hector Salmoiraghi's life a lot easier, he says as he stoops to examine a soybean plant in a vast field lined with eucalyptus trees. Salmoiraghi, whose father and grandfather were also farmers, has been growing soybeans for 25 years, outside the port city of San Pedro, some 124 miles (200 km) northwest of Buenos Aires. "Genetically-modified soy simplified everything," he said, adjusting his black gaucho-style beret and standing tall in his rubber boots and Wrangler jeans.

Salmoiraghi began using U.S.-based biotechnology giant Monsanto's Roundup Ready (RR) soybean seeds five years ago.Made to be resistant to the company's powerful Roundup weed killer, the seeds cut costs by an estimated $50-$60 per hectare (2.47 acres) by reducing the preparation needed before planting.

Salmoiraghi, who planted 250 hectares (617.5 acres) with GM soy this season and plans to plant more next year, says he'd never go back to the traditional seeds: "It wouldn't make sense. GM soy is much easier to work with."He is one of thousands of Argentine farmers singing the praises of GM products, and now the government is behind them more than ever before.

Argentina, a major grain and oilseed producer, is second only to the United States in the use of biotechnology products and has recently re-dedicated itself to promoting their development and attracting biotech companies that want to invest here. After 3 years of a de facto moratorium on approving GM products, Argentina in May authorized the use of Monsanto's RR cotton. Weeks later, the government created a biotechnology commission and Agriculture Secretary Marcelo Regunaga set off for the United States, where he met with biotech companies and visited research centers.

"We share the biotechnology policy of the U.S.," said Regunaga in a recent interview. "I told (U.S. Agriculture) Secretary (Ann) Veneman that in all the international forums, we need to present a common position in which Argentina would have a more aggressive attitude than it has had in the past." Argentina is betting that biotechnology is the wave of the future. But sharing a common policy with the United States also means the countries could share common foes.

ANTI-GM GROUPS: While proponents say GM products increase efficiency, environmental and consumer groups say the products are not well regulated and could contain hidden health and environmental risks. We are against the sale of these products until there is conclusive evidence of the long-term effects they could have," said Karla Irigoyen, the Chile-based representative of watchdog group Consumers International. "There is a lot of concern about the use of GM products in Argentina, not only for the sake of Argentine consumers but also for consumers in all of Latin America," where Argentina sends exports, said Irigoyen.

The government is well aware that GM products are controversial and will step up measures to ensure that no unapproved products are used illegally and that approved products are safe, said Regunaga. Also approved in Argentina are insect-tolerant corns made by Swiss company Novartis and Monsanto, a herbicide-tolerant corn made by Franco-German company Aventis and an insect-tolerant cotton made by Monsanto.

THE TRADE ISSUE: Argentina's renewed commitment to biotechnology means that GM products are here to stay, at least for the time being. But whether GM is the future will depend on the impact the use of these products has on trade. Agricultural shipments make up about 60 percent of Argentina's exports and GM products are a particularly dicey topic in the European Union and Asia, where imports of some products have been restricted on concern they may not be safe for human consumption.

"By approving (GM products) Argentina is definitely moving in the wrong direction and is risking its exports," said Emiliano Ezcurra, the coordinator of the biodiversity campaign for the Buenos Aires office of global environmental group Greenpeace. Argentina sent nearly 30 percent of its grain exports and about 60 percent of its vegetable oil exports to Asia in 2000, according to data from the Agriculture Department.

China last week ruled that all production and sales of GM foods, including imports, must have government approval certifying that they do not cause any harm to humans, animals or the environment. It remains to be seen how the move will affect Argentine exports.

The European Union, where Argentina shipped about 10 percent of its grain exports and 60 percent of grain byproducts in 2000, has not approved any new GM crop varieties since 1998. The European Parliament in February approved strict rules to regulate GM organisms, but France and five other countries said they would continue to block new GM permits until further rules are put in place ensuring gene-altered products can be traced back to their source.

"In Europe, it's a question of time," Carlos Popik, president of the Argentine unit of Monsanto, told Reuters in a recent interview. "The question is purely political," he said. "Europe prefers to increase production by subsidizing it instead of making it more efficient. These are the types of things that will be changed by time."

Regunaga seemed unconcerned about Europe: "In Europe there are people in favor of and people against" biotechnology, he said. "Certainly, we are going to try to find our friends in Europe so that we can have a more aggressive international position in favor of biotechnology."

Politics aside, Argentine farmers will likely continue to support development of GM products that cut costs. Salmoiraghi says RR soy has helped farmers survive in San Pedro, as lower global commodity prices, high interest rates and fuel prices and tax pressure have sent many small producers packing. "GM soy has helped us," he said. "It hasn't helped as much as it could have because prices have fallen, but it has certainly helped because with these fuel prices, I'd say that even we medium-sized producers wouldn't be around anymore."

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