Policy



"Argentine Farmers Embrace Biotech"

Editors
Rooster News Network
June 19, 2001

It's a familiar story that Argentine farmers are telling. Fighting with lower global commodity prices, high interest rates and fuel prices, and tax pressures, many of these producers say that, like their U.S. counterparts, genetically modified (GM) crops are helping them to survive.

In fact, there are thousands of Argentine farmers singing the praises of GM products, and now the government is behind them more than ever before.

Argentina 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 there. After three years of a de facto moratorium on approving GM products, Argentina in May authorized the use of Monsanto's Roundup Ready 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 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, and has also approved Bt corn (from Novartis and Monsanto) and herbicide-tolerant corn made (from Aventis). But the real biotech issue for both Argentina and the U.S. is what impact these products have on trade. Agricultural shipments make up about 60% 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.

Argentina sent nearly 30% of its grain exports and about 60% 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% of its grain exports and 60% 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. When and if those rules are enacted is most likely a matter of politics. And the current political climate in the EU is still chilly toward GM crops.

Politics aside, Argentine farmers will likely continue to support development of GM products that cut costs and keep them in business.

** NOTICE: In accordance with Title 17 U.S.C. Section 107, this material is distributed for research and educational purposes only. **



Last Updated on 6/19/01
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