Indeed, many  countries have no approval process for these products at all. For example, given the  importance of the EU market, U.S. soybean producers have been reluctant  to introduce new biotech varieties that have not been approved for  marketing in the EU. This is primarily because of  the comingling of conventional and biotech varieties in the U.S. grain  handling system. U.S. industry representatives note that labeling  requirements in these countries may adversely impact the marketability of  products with a biotech component and present additional difficulties for  U.S. corn exports. Unlike corn, U.S. soybean exports have not yet experienced disruptions. Challenges Facing U.S. Biotech Exports

The United States faces a number of challenges to maintaining access to  markets for biotech crops and foods containing or derived from  agricultural biotechnology products (see slide 9). Growing consumer concerns, particularly in Europe, about the safety of  biotechnology underlie actions taken by foreign governments that may  restrict biotech trade. Given the numerous international discussions in Codex committees and  elsewhere, the U.S. government must contend with an increasing demand  for staff resources devoted to biotech trade issues. Scope and Methodology

To meet our objectives of (1) summarizing developments in key  international organizations and among major U.S. trading partners that are  likely to affect agricultural biotech trade; (2) identifying principal U.S.  commodities most affected by foreign regulations on biotechnology  exports; and (3) describing challenges U.S. biotech exporters face in  maintaining access to foreign markets, we studied official documents from  various U.S. federal agencies and foreign governments. Moreover, we did not address the appropriateness of  U.S. or foreign regulatory measures regarding biotech products. Corn and soy exports are most threatened by foreign regulations on biotech products.
Why GAO Did This Study

This report reviews the challenges facing U.S. agricultural biotechnology products in international trade.

What GAO Found

GAO found that new regulations and guidelines that may restrict U.S. exports of crops with a large biotech component are being enacted or considered by some U.S. trading partners and are also under discussion in various international organizations. These actions address approval, labeling, and traceability of agricultural biotech products. U.S. corn and soybean exports are most threatened by new foreign regulatory measures because of their biotech content. Although U.S. soybean exports have not yet experienced disruptions, U.S. corn exports have been largely shut out of the European Union (EU) market because U.S. farmers are producing some biotech varieties that have not been approved for marketing in the EU. U.S. agricultural biotech exports face several significant challenges in international markets. First, as the single major producer of biotech products, the United States has been relatively isolated in its efforts to maintain access to markets for these products. Second, in many parts of the world, consumer concerns are growing about the safety of biotech foods, which have led key market countries to implement or consider regulations that may restrict U.S. biotech exports. Another challenge is that U.S. industry combines conventional and biotech grain in the distribution chain. Consequently, foreign regulations governing biotech varieties could affect all U.S. exports of these commodities. Finally, as international negotiations in Codex Alimentarius and elsewhere take on greater importance, the U.S. government faces increasing demands for staff resources and coordination among the multiple agencies involved in biotech trade issues.