Bridges Weekly Trade News Digest • Volume 9 • Number 23 • 29th June 2005

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FOOD FROM CLONED ANIMALS ON WAY TO US SUPERMARKETS?

A four-year risk assessment by the US Food and Drug Administration (FDA) has shown that cloned animals and their offspring are as safe for human consumption as conventional animals. This could potentially soon lead to the lifting of a US moratorium on the commercial use of such products. FDA officials announced the findings of the study at the annual conference of the Biotechnology Industry Organisation (BIO) 2005, held in Philadelphia from 19-22 June.

The World Organisation for Animal Health (OIE) recently decided to undertake further investigations on the need for standards on the use of cloned animals (see BRIDGES Trade BioRes, 10 June 2005). The FDA study, which is based on data provided by private companies involved in livestock cloning in the US, has not yet been published, but will be finalised in the near future.

Cloned animals are likely to be used in the short-term for breeding and expanding the gene pool in the livestock industry rather than directly for food production, but representatives from the livestock industry indicated that meat and milk from cloned animals or their offspring could be on sale as early as 2006 if the moratorium was lifted. In a 22 June statement, an FDA Associate Commissioner for Science confirmed the work on the study but stated that it would be "premature to discuss our findings or to make any final determinations due to the complexity of the issue."

The FDA statement is available at http://www.fda.gov/bbs/topics/NEWS/2005/NEW01188.html.

ICTSD reporting; "US poised to rule that meat and milk from cloned animals is safe for humans," FINANCIAL TIMES, 23 June 2005.

CONSERVATIONISTS RETAIN MAJORITY AT WHALING COMMISSION

With the addition of nine new member states and rampant rumours about the purchasing of developing country votes, there was uncertainty regarding the power balance between pro- and anti-whaling nations as the International Whaling Commission (IWC) met for its 57th annual meeting in Ulsan, South Korea, on 20-24 June 2005. However, votes at the meeting quickly showed that anti-whaling nations, led by Australia, New Zealand and the UK, retained the IWC majority.

The meeting voted to uphold a whaling moratorium in place since 1985, strongly urged the Japanese to abandon plans for expanded whaling for scientific purposes, and defeated a motion to introduce regional management schemes. Nevertheless, pro-whaling nations led by Japan considered the meeting a success, citing support from an increasing number of countries.

The IWC adopted a proposal sponsored by Ireland, South Africa and Germany, which suggested ministerial or other high-level talks should take place over the next year to discuss potential management schemes and the possibility to permit controlled catches in order to overcome the deeply rooted division between whaling and conservationist blocs.

For IWC documents related to the meeting visit http://www.iwcoffice.org/meetings/meetingsmain.htm.

For complete coverage of the meeting, see BRIDGES Trade BioRes, 24 June 2005.

JAPAN FTA TALKS TURNING ACRIMONIOUS OVER AGRICULTURE

Conflicts between Japan’s pro-trade industrial sector and its influential protectionist farm lobby are souring its bilateral free trade agreement (FTA) negotiations, reports the Financial Times. A South Korean diplomat told the British daily that the ongoing Japan-Korea FTA talks have been pushed to the brink of collapse by the Japanese agriculture ministry’s obstruction of discussions. Japan "cannot persuade a certain ministry to conform to the general orientation of Japanese policy," he was quoted assaying.

In early June, South Korean Trade Minister Kim Hyun-chong had said that the FTA talks, stalled since December 2004, would not advance unless Tokyo provided meaningful market access to Korean farm and fisheries exports to go with the near complete liberalisation it is pursuing for trade in manufactured goods. Seoul turned down Japanese Prime Minister Junichiro Koizumi’s request to restart the FTA discussions during his 20-21 June visit to Korea, citing an insufficient offer of agricultural liberalisation.

The Financial Times reports similar complaints not only from other countries currently engaged in FTA talks with Japan, but even from officials in the Japanese ministries of trade and foreign affairs. It quoted the latter as suggesting that the government was pursuing bilateral FTAs — it is also in talks with the Philippines, Thailand, Malaysia, and Indonesia — for political reasons rather than out of any desire to liberalise its economy.

Tokyo-based Asahi Shimbun reports that a 16 June meeting saw Thailand resist Japanese demands that it eliminate all tariffs in its steel and automotive sectors. This may be connected to Japan’s reluctance to expand market access for Thai agricultural exports, even though the countries reached a preliminary deal on the agricultural component of their FTA negotiations in April.

"S Korea blames Japan for trade impasse," FINANCIAL TIMES, 28 June 2005; "Korea urges Japan to open up," ASIA TIMES, 4 June 2005; "Free trade talks stall between Japan, Thailand," ASAHI SHIMBUN, 17 June 2005.