In a jam over GM foods
Egypt is caught in the middle of a dispute between the US and the EU over genetically modified foods, Yasser Sobhi writes
What started as a regular trade dispute between the US and the EU has turned out to be a diplomatic nightmare facing the Egyptian government.
The Egyptian Ministries of Foreign Affairs and Foreign Trade are at loggerheads over whether Egypt should join the motion of arbitration launched by the US against the EU's moratorium on the approval of genetically modified organisms (GMOs). This difference in position has not only embarrassed Egypt by going public, but has also infuriated the US, Egypt's second largest trading partner after the EU.
Last May, the US announced that Egypt, Argentina and Canada will be joining it in demanding that the World Trade Organisation (WTO) intervene to force the EU to end its ban on genetically modified (GM) products. Minister of Foreign Trade Youssef Boutros Ghali had expressed Egypt's interest in EU markets allowing the entry of such crops, saying Egypt is now producing GM crops in the new mega projects (such as Toshka) and is looking to market them.
Egypt's backing of the US position was seen as a smart move aimed at encouraging the US to launch Free Trade Area (FTA) negotiations with Egypt. Besides, proponents of the move said it would not be risking harming bilateral relations with the EU, since the former has launched a number of complaints against Egyptian products in the past few years.
Egyptian exporters have faced many non-tariff barriers when entering the EU. Phytosanitary precautions have not only often kept Egyptian potatoes, fish and dairy products from going into the EU market, but have also damaged their reputation.
The Ministry of Foreign Affairs is, on the other hand, sceptical as to whether Egypt has an interest in launching a dispute. When the Ministry of Foreign Trade sent Egypt's complaint to the Egyptian Embassy in Geneva, diplomats did not deliver it to the WTO secretariat. Instead, the Egyptian ambassador to the European Union issued a statement at the end of May saying that Egypt has reconsidered its support of the US in its complaint against the EU. "The Government of Egypt took this decision to preserve adequate and effective consumer and environmental protection and with the desire to reduce further distortions and impediments to international trade that may result due to the further pursuit of this matter within the WTO," the document said.
Needless to say, the change of heart was welcomed by the EU, and especially by consumer protection organisations. "We are delighted that Egypt has withdrawn from this US attempt to force GM foods and crops into Europe," said Geert Ritsema, Friends of the Earth Europe's GM campaigner. "Countries should be allowed to choose what they eat and what they grow in their fields."
But, Egypt's decision has apparently taken its toll on Egypt-US relations. Shortly after the release of the statement, Robert Zoellick, the US trade representative, who was quoted earlier this year as saying that Egypt was a strong candidate for an FTA with the US, came out shrugging off the possibility that such an FTA will see light any time soon. He explicitly expressed his disappointment with Egypt's decision to withdraw from joining the US case as a third party. He said the Egyptian government was unable to deliver on its promises, excluding Egypt from the first list of countries with which the US will start FTA negotiations.
During the Davos Forum meetings in Amman, Zoellick severely criticised Egypt's economic policies, describing them, in front of more than 1,200 businessmen and experts, as unprepared and leading to an unfriendly investment climate.
Egypt's support of the US in the GM case was crucial. The US has based its argument for the necessity to develop these crops on its claim that they would help defeat hunger in developing countries worldwide. The US considered Egypt as a good representative of those countries.
Meanwhile, Cairo has again been sending out conflicting messages on the issue. On a visit to the US in late June, the Egyptian foreign trade minister once again reassured the US administration of Egypt's support of the GM case. He said that after an upcoming meeting with the Europeans, Egypt will join the US complaint if it was not convinced by the Europeans' argument. The following day, the Ministry of Foreign Affairs issued a statement saying there has been no change in Egypt's position.
An Egyptian diplomat, who spoke under condition of anonymity, said the Foreign Ministry believes such an important decision cannot be taken unilaterally by one ministry and requires more consultations to determine whether the country is actually negatively affected by the EU's moratorium. "Egypt is not yet a producer of GM crops and the Ministry of Health has not allowed the entry of GM products to the Egyptian market," he said. "Also, there is no reason to upset the EU, when the benefits of an FTA with the US are not clear."
A special meeting between Boutros Ghali and Pascal Lamy, the EU trade commissioner, is to be held in two week's time during which the men are expected to discuss the EU ban.
Al-Ahram Weekly Online : 10 - 16 July 2003 (Issue No. 646)
Located at: http://weekly.ahram.org.eg/2003/646/ec1.htm