GE crop damages Canadian exports

By HELEN TUNNAH, deputy political editor

Official papers show Canada may be losing export markets because of its production of genetically engineered canola.

The Sustainability Council said Canada's experience flies in the face of the Government's claims New Zealand's overseas markets will not be affected by the lifting of the moratorium on GM organisms at the end of the month.

The council wants the moratorium on the release of GM food products extended for five years.

Executive director Simon Terry said the New Zealand Government had in a briefing note to Cabinet ministers said Canada was continuing to secure access for its products to sensitive markets, such as Europe, despite having extensive GM plantings.

Biosecurity Minister Marian Hobbs said there would be nervousness within markets, but New Zealand was not about to become a GM exporting country.

She said she had seen nothing to indicate beef, dairy or sheep markets were about to be affected by the possibility New Zealand might one day undertake some GM work on onions.

But the papers released by the council, and prepared by Canada's Department of Agriculture and Agri-Food, indicate that country is experiencing market problems at least for its canola products.

They say there is no broad market acceptance for GM products.

"The production of GE canola is currently adversely affecting the value of non-GE canola, in some markets.

"The EU is effectively closed to all Canadian commodity canola.

"A lawsuit has been launched by the Saskatchewan Organic Directorate against the GE canola developers for the loss of organic canola market due to GE pollen drift."

The papers add producers are becoming worried about losing markets, while consumers were worried they could not distinguish between genetically modified and non-GM products.

"These concerns could precipitate a loss of confidence in the integrity of the Canadian food system, which could be very disruptive to the domestic system as well as to Canada's ability to export to demanding markets."

The report was originally secret but was released under Canada's official information laws.

It was written as part of planning to oversee the marketing of GM products and to "uphold brand Canada".

Mr Terry said the papers contradict information prepared by Ms Hobbs which claimed the GM-sensitive markets of Europe and Japan were still accepting Canada's GM-free products.