Regulating Agri-Food Production In The
US And The EU
Tassos Haniotis
European Commission, Belgium
There are a large number of issues that need
to be clarified across the European Union (EU) and United
States (US) on policies affecting agricultural production
and food safety. While both the US and EU aim to meet similar
objectives, their regulatory approaches often differ. The
US focuses on regulating the end product, the EU has the tendency
to regulate the whole production process. At some point it
will be important for these regulatory processes to find some
equilibrium that will satisfy consumers and regulators. Respecting
and understanding current differences appears to be the only
way to arrive at an equilibrium that allows the full potential
of biotechnology to be utilized.
Key words: regulation; European Union;
United States; BSE; mad cow crisis; bovine somatotropin;
antibiotics use; precautionary principle.
Key differences exist in the
way the United States and the European Union regulate agricultural
and food production. In general, US policies tend to be more
supply-driven, while EU policies are demand-driven, dominated
by consumer concerns. Thus, efficiency of production is the
presiding goal in the US, where farm policy changes encourage
production flexibility and export. In the EU, on the other
hand, the orientation of agricultural policy reform provides
incentives for lower output, and emphasis on quality aspects,
both of products and of production methods. In addition, EU
policies were recently dominated by a complete rethinking
of food safety policy in the aftermath of the BSE crisis that
resulted in regulatory changes whose basic aim was to build
up consumer confidence in food safety.
These US-EU differences, however, do not imply
differences in the underlying objectives of both sides, which
are fundamentally the same how to guarantee the highest
level of consumer safety. Rather, differences in regulatory
measures reflect reactions to different market forces.
Three important cases of food policy issues
can be compared and contrasted in the United States and the
European Union. In the case of BST (bovine somatotropin),
the US government approved the hormone for use in order to
boost milk production, citing few health concerns in the approval
process. In the EU, BST was not approved as a result of a
large amount of consumer resistance because of concerns mainly
for animal health and welfare.
On the issue of genetically modified organisms
(GMOs) the development of output-enhancing and/or cost-reducing
GMOs on crops expected to exhibit strong export demand growth
in the US provided a strong push for their rapid development
and commercial use. In the EU, consumer resistance, linked
not only to concerns for food safety and environmental stewardship
but also to the absence of identifiable benefits from GMOs,
resulted in a slower approval process.
A third case involves the use of feed antibiotics.
The situation on both sides was similar until recently. In
the US, the desire to eliminate bacteria and other toxins
from meat production, hence, providing efficiencies, still
dominates concerns about the long-term impact from the use
of antibiotics. But the EU has shifted towards a ban of most
antibiotics used in animal production, driven by concerns
about their long-term impact on human health.
Why Are EU Policies Different?
There are distinct differences in the perception
of risk between US and EU consumers and citizens. These are
not new, and schematically are often portrayed as follows.
In general, the US consumer holds a great deal of confidence
in the established governmental approval agencies such as
the Food and Drug Administration (FDA) and the United States
Department of Agriculture (USDA). On the other hand, the typical
EU consumer is more risk-averse than the US consumer on food
safety, and exhibits less trust in governments.
But differences have grown recently. The most
important development affecting attitudes towards risk in
the EU stemmed from the BSE crisis (mad cow disease),
and affected consumer attitudes in the EU in a whole series
of areas related to food safety. Not only was this crisis
considered by EU consumers to be a failure of the regulatory
system. More importantly, this crisis was also considered
a failure of science, since the risks of transmission across
species were not identified earlier.
As a result, concerns that are natural among
consumers in the early stages of new technology applications,
in terms of both food safety and environmental impacts, were
exacerbated in the EU in the aftermath of the BSE crisis.
To respond to these concerns, which extend to areas as diverse
as GMOs, the use of antibiotics in animal feed, and the use
of hormones as growth promoters in animals, a new approach
to food safety regulation was introduced in the EU. This resulted
in a complete overhaul of the food safety regulatory system
both in the area of scientific evaluation and in that of consumer
protection.
Thus, contrary to what many believe, EU disputes
with the US in the food safety area are not linked to trade,
but to consumer and societal concerns. European Union policies
focus on helping the EU public to adapt to the post-BSE situation.
In addition, a series of measures aim at increasing transparency
along the supply chain and relaying on independent scientific
evaluation by a trusted source. There is also a need for higher
consumer protection and outlets for disapproval when that
protection is not sufficient.
It is within this context that labeling issues
grew in importance in the EU in the past decade. The main
idea behind labeling food products according to ingredients
and processes responds to the Amsterdam treaty idea of consumers
right to know. This philosophy, coupled with the
use of the precautionary principle in food safety
regulation, leads to a long-term view of potential costs and
benefits for each product before it is approved, thus, covering
all potential consumer, social, and environmental risks.
Does this imply then that such a system introduces
an approval process that is essentially political, and not
based on science? This argument, often stressed on the US
side, seems to oversimplify the role of science in the decision-making
process on issues related to food safety. Throughout the world
scientists do not make decisions; this is simply not their
role. They do, however, make a very significant contribution
to the policy-making process; with the final word left to
these whose role is exactly that to make
policy.
In this process, weighing risk factors on the
basis of scientific evaluation is not done in a vacuum, but
in the concrete environment of societies with specific preferences,
and differences among societies are sometimes also reflected
in different choices on the basis of the same scientific evidence.
This is not a betrayal of science. It is, on the contrary,
an indication of respect for what science really is, the provision
of knowledge with a confidence interval, that is, with a degree
of uncertainty. Treating science as a provider of the absolute
truth (in essence, as a religion) is stretching its limits
to an extent that undermines its essential role in policy
making. If this point of view is taken into consideration,
then regulatory steps taken in the EU will start being viewed
as what they really are. Not as an attempt to impede trade,
but as a necessary stage to restore consumer confidence in
food safety.
Concluding Comments
There are a large number of issues that need
to be clarified across the EU and US on policies affecting
agricultural production and food safety. Although both sides
aim to achieve similar objectives, their regulatory approach
often differs. While the US tends to focus on meeting these
objectives by regulating the end product, the EU has the tendency
to regulate the whole production process. At some point these
two regulatory processes need to converge to find some equilibrium
that will satisfy both consumers and regulators. It will be
important to deal with these policy-making process issues
soon, as broader issues such as public versus private research
on new technologies and intellectual property rights are important.
Technology will be important in reaching world food needs.
However, it will be necessary for the public and private sectors
to come to some understanding about how technology should
be appropriately diffused.
Thus, as we move ahead, focus needs to shift
away from the current, often simplistic emphasis on presenting
differences as an indication of potential conflict, towards
a situation where we could look into these differences as
sources of useful insight into how agricultural technologies
can best advance by increasing their potential for benefits
while at the same time safeguarding against potential risks.
Respecting and understanding present differences
appears to be the only way to arrive at an equilibrium that
allows the full potential of technology to be utilized, and
the (often neglected) common objectives to come to the forefront.
© 2000 AgBioForum
Suggested Citation: Haniotis, T. (2000). Regulating
agri-food production in the US and the EU. AgBioForum, 3(2&3),
84-86. Available on the World Wide Web: http://www.agbioforum.org.
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