Posted September 19, 2014
Cargill
files a lawsuit against Syngenta Seeds seeking damages for China rejecting U.S.
genetically modified (GMO) corn, according to a Reuters article by Tom Polansek
available here.
Farm Futures also published an article available here,
Minneapolis Star Tribune here, and The
Wall Street Journal here.
Cargill
stated in court documents that $90 million was lost due to Syngenta’s sale of Agrisure
Viptera corn, known as MIR 162, to U.S. farmers without obtaining prior import
approval from China, which resulted in refusal of boatloads of U.S. crop
containing the variety.
In August,
China’s Ministry of Agriculture refused to renew certificates that allowed
Chinese research groups to grow genetically modified rice and corn even though
the country has stated that GMO foods are safe. China is also refusing to
accept imported GMOs that are not approved by the government, according to the Star Tribune.
According
to Cargill, China’s Ministry of Agriculture has refused more than 1.4 million
metric tons of corn after traces of Viptera were discovered.
A Cargill
spokesman said the corn in question was diverted to other ports that would
accept the corn. However, Cargill wants to make an example out of Syngenta’s
business practices.
"Unlike
other seed companies, Syngenta has not practiced responsible stewardship by
broadly commercializing a new product before receiving approval from a key
export market like China," said Mark Stonacek, president of Cargill Grain
& Oilseed Supply Chain North America. "Syngenta also put the ability
of U.S. agriculture to serve global markets at risk, costing both Cargill and
the entire U.S. agricultural industry significant damages," according to Farm
Futures.
Stonacek
said that seed companies, farmers, grain handlers, exporters and others have a “shared
responsibility to maintain and preserve market access when introducing new
technology.”
For more information on international trade, please visit
the National Agricultural Law Center’s website here.
