Turkey bans imports of biotech products

Turkey, the 27th largest export market for all U.S. goods, issued a new regulation on Oct. 26, 2009, placing additional requirements on all food and feed products containing genetically enhanced components. This new regulation essentially came without warning, according to U.S. Grains Council Regional Director in the Middle East and Subcontinent Joe OBrien.

"This ban came at us pretty much out of the blue," he said. "This regulation impacts everything from a bag of potato chips to grains and co-products." The Office of the United States Trade Representative (USTR) reported on its Web site that this signifies approval of the fourth draft of a National Biosafety Law and is similar in nature to the draft reviewed last year.

OBrien said the potential impact is substantial to U.S. coarse grains and producers. For example, Turkey is the largest buyer of U.S. corn gluten feed (GCF) and the third-largest buyer of U.S. distillers dried grains with solubles (DDGS).

Turkey imported 435,378 metric tons of CGF in 2008 and 202,422 tons in the first six months of 2009. Turkey imported 465,212 tons of U.S. DDGS in 2008 and 199,173 tons from January through August of this year. USTR reports the U.S. goods trade surplus with Turkey was $5.8 billion in 2008, an increase of $3.8 billion from 2007.

USTR also notes the total value of U.S. "transgenic" crop exports to Turkey exceeded $1 billion in 2007, which are endangered depending on how this new regulation is implemented. OBrien said one issue currently "up in the air" is the fate of the vessels currently on the water loaded with U.S. goods.

Turkeys Ministry of Agriculture and Rural Affairs has to give instructions to the ports regarding this regulation and that has not happened yet. According to Rebecca Fecitt, USGC director of biotechnology programs, the food and feed industry in Turkey can make a significant difference in this matter.

"This is an example of a losing situation for Turkish importers, consumers and end-users," said Fecitt, adding that all countries exporting genetically enhanced goods to Turkey will also be affected. "We have learned that local feed and food groups have already started to express dissatisfaction with this irrational regulation. If these groups continue to put pressure on the Turkish government, expressing how detrimental this decision could be for their profitability, the regulation could be reviewed more closely by government officials and potentially reversed."

A federal judge can reportedly overturn this regulation. Thursday, Oct. 29, marks Turkeys Independence Day, which will keep any immediate information on this new regulation at bay. OBrien said Turkey has a history of making decisions unexpectedly. He said last year Turkey "suddenly" issued a 130 percent import duty on many U.S. commodities, including corn. In fact, USTR reported in its trade summary the Turkish government has a "poor track record of notifying WTO (World Trade Organization) members of proposed or final technical regulations and sanitary and phytosanitary requirements."

According to the USTR summary, "most changes in regulations become effective immediately upon publication with little to no notification to trading partners" resulting in significant disruptions in trade. Fecitt said this regulation intensifies the need for the U.S. government and private industry to continue actively working to raise awareness among Turkish regulators as to the benefits and safety of biotechnology in agriculture.