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European Commission supports Argentina in Monsanto battle


Argentina
Posted: Aug 11, 2006

The European Union has agreed with Argentina regarding complaints filed by Monsanto over roundup ready soybean products shipped from Argentina to Europe.


For months, Monsanto has sought to show that soybean exports to the E.U. are derived from a Monsanto-made seed, whose patent is recognized in Europe but not in Argentina.

The company had therefore claimed that Argentine soy exporters should pay royalties to Monsanto. Subsequently, Monsanto had filed eight cases in E.U. member countries over this issue, which have led to delays in shipments of Argentine soymeal at European ports.

These actions had caused delays and increased costs to importers, leading both importers and exporters in Europe and Argentina to complain about the way Monsanto has trying to resolve its dispute with the Argentine government.

Yesterday, Argentina has obtained an opinion letter from the European Commission supporting the country's argument that soybean byproducts aren't covered under European patents held by U.S. Monsanto, Argentine Economy Minister Felisa Miceli said Thursday: "We received an important ruling yesterday from the Internal Market and Services Directorate-General of the European Commission which will be sent to all European Customs (agencies)", Miceli said.

The letter "strongly supports the Argentine position with respect to soymeal," she said at a Council of the Americas Conference in Buenos Aires.

Monsanto plans to continue its fight and dismissed the significance of the opinion.

"We are not aware of any official document, bet even if it is confirmed, the development of the present cases should not be effected," said Monsanto Argentina spokesman Federico Ovejero. "This is a matter between private companies, and we have very solid cases in Europe."

The opinion letter by the European Commission's legal experts found that E.U. law governing the protection of biotech inventions doesn't extend to derivatives of patented products, an E.U. official in Brussels said.

However, the opinion isn't binding on national courts and the Commission isn't involved in the legal cases between Argentina and Monsanto, the E.U. official said.

If the importers are found guilty by the Dutch and Danish national courts, it will be up to national courts to give a ruling, the official said.

More information.

http://www.marketwatch.com

U.S. Soybean Export Council (USSEC)