The Observer America backs down on GM foods by Ed Vulliamy, John Madeley and Anthony Browne Sunday January 30, 2000 The beleaguered industry in genetically modified foods suffered its most serious setback yesterday when 130 countries signed a treaty giving them rights, for the first time, to restrict imports of GM crops without breaking international trade rules. The breakthrough came after the United States unexpectedly climbed down at the end of heated all-night negotiations at a United Nations summit in Montreal. The US and half a dozen other GM-exporting countries had steadfastly blocked a consensus pact to regulate the trade in genetically modified food. The deadline for a deal passed on Friday night but the talks continued and, close to dawn yesterday, the US delegation agreed to a Biosafety Protocol. After the agreement, the US Assistant Secretary of State, David Sandlow, said: 'On balance, we think this is an agreement that protects the environment without disrupting world trade.' The European Union and many developing nations had argued that countries should be allowed to refuse imports of any genetically modified product. But the US had objected that restricting GM foods would be in violation of World Trade Organisation treaties and that free trade should take precedence. The pact will allow countries to apply a 'precautionary principle' and reject imports of GM foodstuffs if they think there is a safety risk. It will oblige all shipments and trading in genetically modified foods to bear labels stating that the products 'may contain' GM organisms. British Environment Minister Michael Meacher for the first time countries will have the right to decide whether they want to import GM products or not when there is less than full scientific evidence. It is official that the environment rules aren't subordinate to the trade rules. It's been one hell of a battle.' Trade in GM food was discussed at the WTO summit in Seattle in November but the talks collapsed.