GE Food Alert Campaign Center - Headlines -
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Published on: 2/13/2002
Last Visited: 8/3/2002
William DiSalvatore, a partner in the New York law firm Hale and Dorr, said the regulations would deprive the firms, which he declined to name, of business in the world's most populous country.
"My clients will consider some form of action if the rules are implemented on March 20 because they are a barrier that will impede trade," he told Reuters in an interview, adding that one of the companies is based in the United States and the other in Europe.
He did not specify what type of action might be taken."There are other things (possible actions) apart from court action, but I am not at liberty to say," he said.DiSalvatore, who was lead counsel in a patent dispute relating to GMOs in the United States, spoke as U.S. officials held meetings with their Chinese counterparts to clarify the rules.
The regulations require exporters of genetically modified foods to China to apply for safety certificates stating that the goods are harmless to humans, animals and the environment.
U.S. grain industry sources have accused China of using the rules to stem the surge in soybean imports.China accounts for nearly one-quarter of total world soybean imports, and its business is worth about $1 billion to the United States.
The United States is the world's largest producer and exporter of soybeans, and nearly 70 percent of the soybeans grown in the country are genetically modified.
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DiSalvatore said it was too early to assess potential financial losses his clients could suffer due to the rules.Beijing's regulations might prove temporary or be modified once China is able to produce its own varieties of genetically modified crops without foreign technology, he said.
"The suspicion is those regulations are going to be temporary.Maybe they'll stay for a year.Once China develops a rice variety, then they will modify the rules ... once they have the advantage," he said.
DiSalvatore said China's attempt at developing an indigenous biotechnology industry was evident in its plans to ban new foreign investment in the development and manufacture of seeds of genetically modified plants.A draft government document showed China also planned to limit foreign investment in the production of cereals, potatoes, cotton and oilseeds.
"If China is going to shut down foreign investment in GMOs, it will be very difficult for all of the big players in the ag biotech industry to focus on that market," DiSalvatore said.
DiSalvatore said he would advise his clients to get strong patent protection in the United States and Europe in the event China is in the process of developing a particular transgenic product and hopes to sell it in the United States.
"That could be an act of infringement in the United States," he added.
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