Voluntary Report - public distribution

**Date:** 9/19/2005

**GAIN Report Number:** NL5028

NL5028

**Netherlands**

**Biotechnology**

**Annual Agricultural Biotechnology Report**

**2005**

**Approved by:**

![](media/image1.wmf)Roger Wentzel

U.S. Embassy, The Hague

**Prepared by:**

Bob Flach

**Report Highlights:** The Benelux region imports a large quantity of
U.S. feed products, which require labeling for GM content under the
European Union's traceability and labeling legislation. The importation
of GM food products from the U.S. is nearly absent.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

The Hague \[NL1\]

\[NL\]

# I. Executive Summary

In 2004, the Benelux region imported approximately US\$ 280 million of
agricultural bulk products from the U.S. A large share of this trade was
feed products which required labeling for GM content under the European
Union's traceability and labeling legislation. The importation of GM
food products from the U.S. is nearly absent because few food retailers
are willing to place GM-labeled products on their shelves. The
widespread avoidance of GM containing food products was the case well
before the traceability and labeling legislation took effect in April
2004, but the implementation of the legislation has forced virtually all
domestic food manufacturers to move to across-the board sourcing of
non-GM ingredients. Commercial production of biotechnology crops, and
even field experiments, is absent in the Benelux region. Coexistence
legislation has not yet been implemented in any of these countries.

# II. Biotechnology Trade and Production

## Production of biotechnology crops

In the Netherlands, Belgium and Luxembourg, there is no commercial
production of biotechnology crops.

# Development of biotechnology crops

In the Netherlands, Belgium and Luxembourg, there are no biotechnology
crops under development that will be on the market in the coming year.

Import of biotechnology crops

The Benelux region imports significant volumes of genetically modified
soybeans and derived products, and corn products derived from GM corn
such as corn gluten feed and distillers dried grains.

# III. Biotechnology Policy

## Regulatory framework for agricultural biotechnology in The Netherlands

As EU member states, the Benelux countries have implemented harmonized
legislation regarding agricultural biotechnology. The following four
Ministries are responsible for implementation and enforcement of the
regulatory framework for agricultural biotechnology in The Netherlands:

### The Ministry of Public Health, Welfare and Sport (VWS). VWS is the coordinating ministry in the policy-making process in the field of medical and agricultural biotechnology. Regarding agricultural biotechnology, VWS has no responsibility for the implementation or enforcement of this legislation. 

[The Ministry of Housing, Regional Planning and Environment
(VROM)]{.underline}. VROM is responsible for implementation and
enforcement of legislation regarding living GMOs, such as used in
laboratory research and feed trials. For the inspection of crops and
seed imports the Plant Protection Service is responsible (see below).

[The Ministry of Agriculture, Nature and Food Quality
(LNV)]{.underline}. With VWS, LNV plays an important role in the
implementation of the EU Traceability and Labeling legislation. LNV has
three bodies responsible for enforcement of the legislation regarding
biotech feed and food;

-The Food and Consumer Product Safety Authority (VWA). This organization
embodies two separate organizations: the National Inspection Service of
Livestock and Meat (RVV), and the Inspectorate for Health Protection and
Veterinary Public Health (KvW). The RVV is responsible for documentation
and physical control of feedstuff imports entering through Dutch ports.
The KvW is responsible for inspection of food products.

-The General Inspection Service (AID) is responsible of the agricultural
law enforcement and has the authorization to impose fines. With the RVV,
the AID also plays an important role in the inspections of feed imports.

-The Plant Protection Service (PD) is responsible for inspection of
crops and seed imports into The Netherlands.

[The Ministry of Economic Affairs (EZ)]{.underline}. The Dutch customs
is responsible for document control at the Border Inspection Posts.

## Regulatory framework for agricultural biotechnology in Belgium

The following authorities are responsible for implementation and
enforcement of the regulatory framework for agricultural biotechnology
in Belgium:

[The Federal Government Department for Health, Food Chain Safety and
Environment (VVL)]{.underline}. The VVL is the coordinating Belgian
Federal Government Department in the policy-making process in the field
of medical and agricultural biotechnology.

[The Biosafety Advisory Council (ARB) and the Service of Biosafety and
Biotechnology (SBB)]{.underline} The ARB and SBB advise the VVL about
the safety of activities involving GMOs.

[The Belgian Food Agency (FAVV)]{.underline}. The FAVV is responsible
for document and physical controls of food and feed. The FAVV implements
and enforces the EU traceability and labeling legislation in cooperation
with the Federal Government Department for Economy.

In Belgium, the federal VVL has a joint responsibility with the two
Belgian Regions, Flanders and Wallonia, for authorization of the use of
GMOs either in consigned use (laboratory) or in field trials.

## Regulatory framework for agricultural biotechnology in Luxembourg

The following authorities are responsible for implementation and
enforcement of the regulatory framework for agricultural biotechnology
in Luxembourg:

[The Luxembourg Ministry of Health.]{.underline} The Luxembourg Ministry
of Health coordinates the policy-making process in the field of medical
and agricultural biotechnology in Luxembourg. The laboratory responsible
for sampling and analysis of foodstuffs, including enforcement of the
traceability and labeling legislation, is the National Laboratory of
Health, Division of the Control of the Foodstuffs (LNS).

[The Ministry of Agriculture, Viniculture and Rural Development
(MAVD)]{.underline}. As part of the MAVD, the Department of Agricultural
Technology (ASTA) is responsible for quality assurance in the
agricultural sector, which includes sampling and analysis of
agricultural products and implementation of the coexistence policy.

## Role and Membership of Biosafety Committee

In The Netherlands, the Ministry of Housing, Regional Planning and
Environment (VROM) is responsible for the Cartagena Protocol on
Biosafety (CPB). In Belgium, the Federal Ministry of Public Health is
responsible for the CPB. In general, both countries support the joint EU
position regarding Article 18.2(a) of the CPB, testing for, and
adventitious presence of Living Modified Organisms (LMOs) and the
related subject concerning thresholds, and the use of unique
identifiers. The Dutch Government has the opinion that the regulations
must be workable for the private industry and enforceable by the
authorities.

**Assessment of political factors**

The Ministry of Public Health, Welfare and Sport (VWS) is the
coordinating Dutch Ministry in the policy-making process in the field of
biotechnology. VWS represents The Netherlands in the Sections of the
Standing Committee on the Food Chain and Animal Health (SCoFCAH). If the
subject relates to the environment, VWS coordinates the policy-making
with VROM. If the subject relates to food or feed, VWS coordinates the
policy making with LNV. VWS chairs regularly Food Law Consultation
Meetings in order to coordinate the policy making process with the
involved government bodies, industry organizations and consumer
organizations.

In Belgium, the Federal Government Department for Health, Food Chain
Safety and Environment (VVL) is the coordinating Belgian Federal
Government Department in the policy-making process in the field of
biotechnology. VVL represents Belgium in the Sections of the Standing
Committee on the Food Chain and Animal Health (SCoFCAH). Like the Dutch
VWS, VVL chairs consultation meetings with the involved government,
industry, and consumer organizations. In Luxembourg, the Ministry of
Health is coordinating the policy-making process in the field of medical
and agricultural biotechnology.

## 

## Field trails with GMOs

Experimental planting of biotech crops is almost impossible in The
Netherlands. Crop trials are effectively prevented by cumbersome
regulations imposed by the Dutch government and by the threat of
protests from environmental groups. The Dutch government has issued over
30 licenses for field trials of biotech crops. In 2005, only four
licenses, however, are being used: two for field experiments with GM
potatoes; one with GM apples; and one with GM carnation. In Belgium and
Luxembourg, there were no licenses issued for field trials in 2004 and
2005.

## 

## Coexistence policy 

A commission set up to represent all sectors of Dutch agriculture has
agreed on rules for the coexistence of the biotech, organic and
conventional crops. On November 2, 2004, the Commission for Primary
Sector Coexistence presented this agreement to the Dutch Ministry of
Agriculture, Nature and Food Quality. The Commission included
representatives of Biologica (representing organic producers), the Dutch
Farmers' Union (LTO), Plantum NL (representing the seed industry), and
the Association for Earth, Farmer and Consumer. This commission was
formed by Minister of Agriculture Cees Veerman to ensure that
coexistence guidelines would represent industry consensus. The agreement
is set within the framework of the EC Directives 2001/18/EC and
2003/556/EC, and Dutch Civil Law. The agreement covers production of
only three products; potatoes, sugar beets and maize. Trade in planting
seeds, and handling and transport of the crops are not covered by this
agreement.

In Belgium, the two Belgian Regions, Flanders and Wallonia, are
responsible for formulating and implementing a coexistence policy. The
Flanders Government has presented a proposal to the Flanders
agricultural sector for comments. After the summer, this proposal will
be presented to the Flanders Parliament. The proposal reportedly
guarantees free choice for the farmer to plant GMOs, and includes a
liability fund. The Ministry will impose the coexistence policy per
crop, probably starting with corn. The Walloon Government is preparing a
proposal for the coexistence regulations. By the end of this year the
proposal will be presented to the Walloon Parliament. The Walloon
proposal for coexistence legislation is expected to be the same or
comparable as the Flemish proposal.

In Luxembourg, the Ministry of Agriculture received the Parliament's
recommendations on the coexistence legislation. The legislation will be
enforced at the earliest by the end of 2005. The bill says that a
Grand-Ducal regulation should establish terms for use and cultivation of
GM seeds and plants in relation to: imports of such seeds and plants;
localization of plots destined to such cultivation; sowing of rented
plots of land; and distances between GM and regular cultivations of one
same plant species, between GM and biological cultivations, and between
GM cultivations and environmentally sensitive areas. The Grand-Ducal
regulation can reportedly establish supplementary terms concerning
cultivation practices when GMOs are involved. The regulation can also
ban cultivation of GM varieties of specific plant species if it is
proven that for such a species fortuitous contamination of conventional
cultivations cannot be prevented in any other way. In addition, the
regulation can ban GM cultivations in environmentally sensitive areas.

## Biotechnology related trade barriers

##### Approval of GM Events

The slow, cumbersome and politically influenced EU procedures for the
approval of GM products negatively affects U.S. exports of many products
to the Benelux. The biggest impact is on exports of corn, planting seeds
and consumer food products. Apart from the limits on biotech crops
themselves, conventional U.S. corn and planting seed exports are also
impeded by fears of possible GM co-mingling with conventional and
organic crops. The biotech issue has also affected U.S. soybean exports
to the Benelux. This can be explained by the shift of the food
processing industry from oil derived from GM soybeans to oil derived
from non-GM soybeans from Brazil, and rapeseed oil and palm oil.

Besides U.S. exports of bulk products, also U.S. exports of consumer
products are threatened. During the past seven years, retailers have
been reluctant to select products that are labeled as containing GM
ingredients. Luxury department stores and specialty shops, however,
still have an unknown number of consumer products from the US, which are
labeled as GM. The importation of these labeled products is done on a
relatively small scale, and represents a very small volume when compared
to overall amount of trade in food and agricultural products.

##### Traceability and Labeling of GMOs

The direct effect of the T&L legislation on US exports has been limited
as most of the products subject to GM labeling were already been removed
from the food chain before this legislation went into effect, in
response to the demands of EU food retailers. The legislation has
broadened the coverage of labeling and will force food companies still
using certain GM containing ingredients to seek non-GM sources or alter
their product formulations.

# Agenda of Dutch and Belgian Government regarding EU biotech policies

##### Traceability and Labeling legislation

On November 28, 2003, the Agricultural Council reached an agreement on
the EC's Traceability and Labeling (T&L) Legislation for GMOs. The Dutch
government voted for the EC proposal in the Agricultural Council, but
voted against the traceability portion of the proposal in the
Environmental Council. The general position of the Dutch Government is
that regulations regarding GMOs must be workable for the private
industry and enforceable by the authorities. The Dutch Government is in
particular worried about the required paperwork that could lead to
higher cost prices for trade and the possibilities for fraud. The
Belgium Government in general supports the T&L legislation.