Authors
David G. Victor
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Commentary
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Having backed down from its trade dispute with the EU over GM food, the Bush administration will find it hard to make the threat of going to the trade organization credible again and to continue the momentum toward removing Europe's ban.

STANFORD, California - The Bush administration wisely backed away this month from formally challenging Europe's ban on genetically modified foods. It made no sense to antagonize Europeans over the food they eat when they are pivotal to more weighty matters, such as a new resolution on Iraq.

Still, Washington's threat that it would file a case against the European Union at the World Trade Organization had palpable benefits. Even the countries with the most hostile policies on engineered food - France and Germany among them - took steps toward allowing the European Union to work on replacing the blanket ban with a new system for tracing and labeling engineered food.

But the decision to back off also means that American farmers are still denied access to the lucrative European market. European consumers still pay more for food than they should. And developing countries that could most benefit from engineered crops are still frightened that losing their "engineering-free" status will make it impossible to export food to Europe.

Yet the science on food safety is as certain as it ever gets: There is no known danger from eating engineered food.

Having backed down, the Bush administration will find it hard to make the threat of going to the trade organization credible again and to continue the momentum toward removing Europe's ban. But even harder for the administration will be keeping domestic politics at bay.

The biggest threat to the success of the U.S. strategy on engineered foods is in the American heartland, which is angling for a fight with Europe over the ban as the 2004 elections approach. Senator Charles Grassley of Iowa called the decision to defer a trade dispute "the usual snobbery" of a State Department "more concerned about international sensitivities than the American farmer." Two tactics should guide the effort to open Europe's markets. One is to let the Europeans lead their own reform.

The engineered foods available to consumers today mainly benefit farmers who can grow them at lower cost. These foods look and taste the same as their traditional counterparts. For rich consumers in Europe willing to pay a bit more, it is easy to focus on hypothetical risks and shun these products. But the next generation of engineered foods, already nearing the marketplace, will have healthful benefits for consumers - fruits that contain cancer-fighting lycopene, for instance - and this will make it harder for European countries to bar all these foods.

During the furor last summer over Zambia's rejection of genetically modified corn, prominent European politicians were forced to declare that these foods were safe - a blatant contradiction of Europe's own policies.

The other tactic is outreach to the developing world. In the poorest nations, agriculture provides the livelihood of most of the population, and agricultural research proves that genetic engineering can make crops that poor farmers grow both healthier and more productive.

Yet research on engineered crops and support for farmers who grow them lack money, not only in U.S. agricultural development and extension programs but also at the international agricultural research centers that were the engine of the first green revolution. In the last decade American support for international agricultural research has declined considerably.

An American program that would finance agricultural research on novel uses for genetically modified crops in developing countries would help those countries and could eventually help open European markets.

An American-led effort to pry open those markets would backfire. But one led by a developing country could succeed, as Europe considers the moral issues posed by barring food from a country which needs to sell its crops to survive. So far, few developing countries (South Africa is one exception) allow commercial planting of engineered crops. The United States needs to overcome the fears of the developing nations by growing such crops there and demonstrating how they could transform agriculture.

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During the past decade, multinational companies (MNCs) have made radical institutional changes: instead of generating research and development (R&D) knowledge solely in central laboratories in home countries, they have shifted their strategy to developing the capability to absorb and utilize cutting-edge technologies worldwide. Based on over 80 interviews with mainly electronics and pharmaceutical companies in Europe, Japan and the United States, this presentation addresses the question: How have MNCs developed their capability to evaluate, internalize, and utilize external R&D knowledge from abroad? Still a work in progress, this research provides an understanding of the evolutionary process of internationalization of R&D as well as the various strategies of Japanese and European high technology MNCs to absorb new technologies from US and Europe.

Biography: Seiko Arai is a doctoral student at the University of Oxford, UK, and currently a visiting scholar at Shorenstein APARC, Stanford University. She obtained a bachelor's degree in law and political science from the University of Tokyo, Japan, and a Masters in public policy from Harvard University. She has worked for the Japanese government and the headquarters of the Organization for Economic Cooperation and Development (OECD), France, in the areas of science and technology and education policies.

Okimoto Conference Room, Encina Hakk, Third Floor, East Wing

Seiko Arai Visiting Scolar A/PARC
Joerg M. Borchert Vice President Panelist Security & Chip Card ICs, Infineon Technologies North America Corporation
John K. Howard Visiting Scholar, Stanford and former President Panelist Panasonic Semiconductor Company, USA
Seminars
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She will present her photos and discuss her experience of being in Indonesia during that violent period.

Dan and Nancy Okimoto Conference Room, Encina Hall, third floor, east wing

Maya Vidon Photojournalist Speaker Agence France-Presse
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This program is free and open to the public. Lunch will be provided for those who RSVP before noon on Wednesday, February 6th to Okky Choi Tel: 650/724-8271 Email: okkychoi@Stanford.EDU According to other regions' experiences including those of the Mediterranean region in Europe, the existence of a regional leader (such as France in the Mediterranean region) can facilitate the cooperation needed to adequately address regional pollution problems. South Korea may be a likely candidate for such a leadership role in Northeast Asian environmental cooperation initiatives. South Korea has not only been active in various regional efforts, but has also been successful in developing its own environmental institutions at the domestic level. However, the unique geopolitical situation in Northeast Asia limits South Korea's ability to exert a true leadership role in the region. Instead, South Korea can be a "facilitator" of the regional initiatives in Northeast Asia where no state can play a similar role that France played in the Mediterranean region.

Encina Hall, Central Wing, third floor, Philippines Conference Room

Suh-Yong Chung JSD Candidate Speaker Stanford Law School
Seminars
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On January 1 Sweden assumed the rotating chairmanship of the European Union. While serving as the Swedish EU Commissioner from 1995 to 1999, Gradin was in charge of immigration, home affairs and justice. She will discuss Sweden's priorities for the EU, and the results of the December EU summit in Nice, France, with its associated Treaty of Nice. Gradin has a distinguished career: she was Vice-Chair of the national Federation of Social Democratic Women in Sweden, Chair of the Council of Europe's Committee on Migration, Refugees and Demography, and Minister with responsibility for immigrant and equality affairs at the Ministry of Labor (1982-86). From 1968 to 1992 she was a member of Parliament and a member of the parliamentary Standing Committees on Education and on Finance, as well as a delegate to the Council of Europe. From 1986 to 1991 Gradin was Minister with responsibility for foreign trade at the Ministry for Foreign Affairs, and from 1992-94 she was Sweden's ambassador to Austria and Slovenia and to IAEA and UN in Vienna.

Oksenberg Conference Room

Anita Gradin former EU Commissioner Speaker Swedish Institute
Seminars
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Professor Jean-Luc Domenach is one of France's leading experts on China, and on Asia more broadly. His publications include works that have dealt successively with the internal and external politics of the People's Republic of China and with international relations in East Asia. His books include The Origins of the Great Leap Forward (1995); The Forgotten Gulag: China's Prison Camps (1992); Asian Communism: Dead or in Transition (1994); Asia Rediscovered (1997) and, most recently, Asia in Danger (1998). In addition to his academic writings, he is a regular columnist for two French dailies, La Croix and Ouest-France. He is also on the editorial and advisory boards of several scholarly journals, including the French Review of Political Science, International Politics, and Politics Abroad. Professor at the Institut d'Etudes Politiques de Paris, beginning in 1995 he became Scientific Director of the Fondation Nationale des Sciences Politiques, where he is also in charge of the Masters of Contemporary Asia Program. Jean-Luc Domenach is a knight of the National Order of Merit.

Bechtel Conference Center

Jean-Luc Domenach Professor Speaker Institut d'Etudes Politiques de Paris
Lectures
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Through interviews with and analysis of the portfolio of French VCs in Silicon Valley, Professor Ferary is examining ties between VCs and entrepreneurs based on nationality, education and professional background. He describes how French venture capitalists use the French network in their businesses and how they try to get inside others' social networks to increase their resources and accumulate social capital. An exchange theory based on the gift exchange theory can be used for understanding VC behavior and relations. Currently a visiting scholar at Stanford's Sociology Department, Michel Ferary is an assistant professor at Essec School of Management in Paris, France. He earned a PhD in business administration from HEC (France) and worked for three years as a consultant in financial services for Andersen Consulting and Gemini Consulting. In addition to current work on French VCs in Silicon Valley, Professor Ferary's research focuses on the function of social networks in the financial risk evaluation done by bankers.

Okimoto Conference Room, Encina Hall, East Wing, Third Floor

Michel Ferary Assistant Professor Essec School of Management, Paris

In partnership with a number of European colleagues, Paul Sniderman (IIS and Political Science) is directing a series of large-scale public opinion surveys designed to take advantage of computer-assisted interviewing techniques. A major focus of these surveys is on group conflict, particularly over immigrants. The survey in Italy has been completed; one in the Netherlands is at the stage of analysis and a study of political beliefs in France is currently being designed.

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