November 5, 2001 -- After seven years of arduous debate, the United Nations Food and Agriculture Organization (FAO) adopted an international treaty on plant genetic resources on
3 November 2001. The treaty was approved with 116 votes in favor, and 2 abstentions - from the United States and Japan.

The agreement. which will become legally binding after ratification by 40 countries, aims to protect the world's most important food and forage crops through a system that facilitates broad access to
a list of crops crucial to food security. This includes both materials in gene banks, farmers' fields and in the wild. The agreement also provides for the exchange of information and technology
between countries, particularly to benefit developing countries and countries in transition.

The presence of diverse varieties in a field can help prevent devastation by pests or disease. But over the past century, the traditional heterogeneous varieties that contain most of the world's
agricultural biodiversity have been displaced from farmers' fields by modern homogeneous varieties. Most of these traditional varieties have been lost and many of those that remain can now be
found only in gene banks. Away from farmers'fields, these varieties are unable to evolve and adapt to changing environmental conditions.

"With modernization, fewer and fewer crops form the basis of the world's food security," says José Esquinas-Alcázar, secretary of the FAO Commission on Genetic Resources for Food and
Agriculture. "A study carried out by FAO shows that, over the years, about 7 000 plant species have been cultivated or collected by humans for food. At present, however, only 30 crops provide 90
percent of the world's calorie intake. This agreement will help protect global agricultural biodiversity."

The treaty also aims at equitable sharing of the financial benefits resulting from the use of the plant genetic resources covered by the system. Mandatory payments will be required when commercial
benefits are obtained from the use of these resources. Payments will be voluntary, however, when a commercial product derived from these resources is still available for research and plant breeding.
These payments will be used for priority activities, particularly in developing countries and countries in transition.

The treaty does not discourage the development of biotechnology, according to Esquinas-Alcázar. "I prefer to talk in the plural of 'biotechnologies,' and there is no doubt that the development and
use of new and traditional biotechnologies can greatly contribute to reducing hunger and poverty in the world," he says. "Genetic resources and biotechnologies should be considered
complementary, as the first provide the raw material for the second. Even the most sophisticated biotechnologies do not create genes, but recombine those existing in nature to produce new varieties
and agricultural products.

"Modern biotechnologies provide powerful tools with the potential to increase and improve production in various situations, including to the benefit of small farmers and local economies. The main
question lies in which biotechnologies and for which purpose. Big business makes big investments and usually wants short-termreturns from a limited range of standardized products, which does
not necessarily serve the goal of reducing world hunger. For this reason, it is important that investment also be made in the public sector, so that it can maintain its involvement in biotechnological
research, in order to ensure that the needs of the poor are well taken care of," Esquinas-Alcázar concludes.         

Other action has been taken on issues related to plant genetics in recent weeks. On October 30, 2001, the government of New Zealand announced its support of agricultural biotechnology through its
formal endorsement of the recommendations of the Royal Commission on Genetic Modification. The government noted that “it is unwise for New Zealand to turn its back on the potential advantages
offered from genetic modification.” It lifted an 18-month ban on field trials for genetically modified crops and “contained research” (medical, agricultural and
otherwise) while establishing a restriction on the commercialization of biotech crops or products for two years.

According to an October 30 Reuters article, European Union (EU) governments October 29 rejected the idea of lifting a three-year ban on importing and planting
new biotech crops, a position a top EU official warned was illegal. At a meeting in Luxembourg, many environment ministers from the 15-country union
spoke against plans by the EU’s executive Commission to restart licensing biotech seeds and crops, a process that has been stalled since 1998. Although
no formal decision was taken, EU Environment Commissioner Margot Wallstrom said it was clear from the discussion that governments did not want to
accept her advice and lift the moratorium on new biotech licenses, noting the EU may be open to a complaint from biotech exporters like the United States
at the World Trade Organization. It could take another two years for countries to formally adopt the Commission’s proposed regulations on traceability
and labeling, she added. The delay would be many years longer if member states, such as France and Luxembourg, insisted on a new directive on
environmental liability before new licenses are granted.

President George W. Bush and other leaders of the Asia Pacific Economic Cooperation (APEC) region October 21 in Shanghai, China, confirmed their support for the development of
biotechnology. The APEC leaders endorsed a U.S. proposal to establish a new high-level biotechnology policy dialogue. The first session of the dialogue will take place in Mexico City in February
2002.

The Bush dministration is enhancing technical assistance to support agricultural biotechnology through a number of public and private sector programs. These efforts include:

• A joint project by the U.S. Department of Agriculture, the U.S. Geological Survey, and U.S. and Chinese universities to establish "centers of excellence" in China to further capacity building
  and information exchange on best agricultural practices.

• Programs to develop appropriate disease-resistant crops, such as the U.S.-Mexico project on genetic patterns of wheat viruses, which aims to improve wheat resistance to infection.

• Programs to develop crops with enhanced nutritional value, such as a multinational project to develop staple crop varieties that contain significantly more nutrients to address the malnutrition that
  afflicts an estimated 3 billion people worldwide.

• A public-private sector cooperative exchange program on food research focusing on state-of-the-art developments in agricultural biotechnology. An initial program, funded by the U.S. Trade
  Development Agency and the private sector, is being organized by the Danforth Research Center in St. Louis, MO, the Council for Agricultural Science and Technology, and the U.S. National
  Center for APEC.

• An exchange program for food safety and a public-private dialogue on biotechnology regulation, supported by the U.S. Trade and Development Agency, with the assistance of the Council for
  Agricultural Science and Technology and the U.S. National Center for APEC. This project will help build capacity in the region to formulate sound, science-based regulatory policies, in areas such
  as phytosanitary regulations, risk assessment, and testing and certification requirements, that will ensure the environmental and food safety of all food products.