	Overview

U.S. farmers are widely adopting biotechnology, growing genetically engineered (GE) crops-- mainly corn, soybean, and cotton varieties -- to lower production costs and reduce laborrequirements. (2)
U.S. crops where GE varieties are common are highly dependent upon export markets. (3)
The problem for U.S. agriculture is that many countries remain wary of agricultural biotechnology, including those in the European Union (EU), where consumer and environmentalorganizations have been vocal in expressing concerns about the safety of GE crops and animals. TheEU and other important U.S. trading partners have adopted widely divergent approaches toregulating biotechnology. As a result, U.S. exporters are encountering barriers to their products inthese markets. For example, since 1998, the EU, the fourth largest foreign market for U.S. agricultural products, has maintained a de facto moratorium on approvals of new GE crop varieties. In May2003, the United States, Canada, and Argentina began a formal challenge of the EU policy in theWorld Trade Organization (WTO), contending that it violates international trade agreements and alsohas fueled unwarranted concerns about the safety of agricultural biotechnology throughout the world(see page 9 ). International Oversight of Agricultural Biotechnology

		National Regulation (5)

Around the world, countries have taken widely divergent approaches to regulating the products of agricultural biotechnology. Multinational Oversight

The wide range of national approaches to GMO regulation is in part due to the fact that an international consensus on how to regulate agricultural biotechnology is still evolving. Concerns

U.S. officials say they are actively engaged multilaterally and bilaterally toensure that any national or international standards are consistent, transparent, basedon scientific principles, and compliant with international trade rules (e.g., thoseadministered through the WTO). For example, the Senate on May 23, 2003, passed, by unanimousconsent, a resolution ( S.Res. 154 ) supporting the U.S. action against theEU; a similar House measure ( H.Res. FAS programs include: (25)
An Overseas Biotech Training/Education Program involving seminars, symposia, and educational materials on various biotechnology issues aimedat foreign educators, public officials, and others; 
Cochran Fellowship Program Biotechnology Training, offeringshort-term U.S. training for foreign scientists, regulators, journalists, andpolicymakers, to provide information about the technology's benefits and about U.S.regulation; 
Biotechnology Short Courses, a new series of quarterly,two-week programs in the United States for foreign participants intended primarilyto impart "biotechnology's relationship to market access and trade in agriculturalproducts, and the factors influencing that relationship";
Capacity Building for the Seed Trade Industry to expand seedtrade with Eastern Europe, Africa, and Asia;
Biotechnology Research Capacity Building, supporting thedevelopment of science-based research and regulatory programs and promotingglobal food security, particularly in developing and newly emergenteconomies;
Biotechnology Activities With International Organizations,utilizing a variety of approaches like briefings staged at multinational meetings (e.g.,at Codex and at the Rome World Food Summit in 2002) and at regionalworkshops. An increasing share of APHIS harmonization work revolves around trade in GE products.
U.S. farmers have been rapidly adopting genetically engineered (GE) crops -- mainly corn, soybean, and cotton varieties -- to lower production costs and improve management. However, theU.S. agricultural economy is highly dependent upon exports, at a time when many foreign consumersare wary of the products of agricultural biotechnology. As a result, U.S. exporters often haveencountered barriers to trade in these markets.
Among the most controversial barriers is in the European Union (EU). The EU, the fourth-largest foreign market for U.S. agricultural products, since 1998 has maintained a de factomoratorium on approvals of new GE crop varieties. In May 2003, the United States launched aformal challenge of the EU policy, contending that it both violates international trade agreementsand causes unwarranted concerns about the safety of agricultural biotechnology throughout theworld.
The EU and other important U.S. trading partners around the world have adopted widely divergent approaches to regulating biotechnology. The wide range of approaches to GE productregulation is in part due to the fact that an international consensus on how to regulate agriculturalbiotechnology is still evolving. U.S. officials say they are active globally to ensure that national andinternational standards for genetically modified organisms (GMOs) are consistent, transparent, basedon scientific principles, and compliant with international trade rules (e.g., those administered throughthe World Trade Organization). For example, they have been working to ensure that the so-calledCartagena Biosafety Protocol, a multilateral agreement on the safe handling, transfer, andtransboundary movement of living modified organisms, does not present new obstacles to U.S.exports of such products.
Another issue involves recent difficulties in moving U.S. food aid to certain African countries due to what U.S. officials said were unwarranted, EU-provoked concerns that such aid's possible GEcontent could pose safety problems for recipients. Debate also revolves around the potential benefitsand problems of introducing GE crops to developing countries.
Congress continues to follow these issues closely. For example, a number of leading lawmakers pressed hard for the Administration to aggressively challenge the EU moratorium. Following theAdministration's decision to do so, the Senate and House passed resolutions ( S.Res. 154 ; H.Res. 252 ) in support of the action. Several House hearings have been held toreview barriers to the adoption of, and trade in, GE agricultural products; and to review challengesand opportunities for plant biotechnology development in Africa. Additional hearings are possible. Whether the 108th Congress will consider other legislation affecting agricultural biotechnology wasuncertain in June 2003. This report will be updated if events warrant.