Canada has always relied on science-based regulations for the approval of new products and the renewal of existing ones. By establishing consistent, objective standards, science-based regulations provide certainty for developers to invest in the development required to get innovative products to market. In the initial research and development (R&D) period for genetically modified (GM) crops, significant amounts of this research was conducted in Europe. At this time, the regulations for the commercialization of GM was left up to individual Member States of the EU and both Spain and Portugal approved GM corn in 1998.
In 2003, the EU opted to take approval of GM crops away from the Member States and consolidate this mandate within the European Commission. Doing so completely restructured the risk assessment process for GM crops in the EU, shifting from science-based regulations to precaution-based regulations. By deliberately shifting regulatory development, the EU has ensured that innovative crop production products will not be approved for adoption by European farmers. Since 2003, the EU has approved only one GM crop. This was a GM potato variety that took 13 years to receive commercialization approval and was removed from the market after two years of production. By comparison, Canada has approved 159 different GM products since 1995. The divide has had significant detrimental impacts on European agriculture as between 1995 and 2019, crop productivity in the EU increased by a mere 7% compared to 28% in Canada and 35% in the USA.
The effects of precaution-based regulation have been devastating for R&D investments into new crop protection products in the EU. In the 1980s, the EU accounted for 33% of global R&D investments into new crop protection products. However, due to increased regulation and costs by 2005-2014 this plunged to 7.7%. Investment capital is fleeing Europe, heading to other countries and regions whose regulatory frameworks remain science-based. Based on R&D investments in the 2005-2014 period, it is estimated that at least $1 billion is annually no longer invested in the EU.
With the EU ban on the commercialization of GM crops and restrictive regulations on crop protection products, this dramatically impacted the production of some crops that rely on the use of banned products. In 2013, the EU moved to phase out the use of neonicotinoids, an insecticide that protects crops during germination and early stage growth. By 2016, neonicotinoid use was banned within the EU. This impacted the production of sugar beets in France, with yields plummeting by up to 80% and rapeseed production in the United Kingdom dropping over 50%. This results in lower profitability for farmers as they were forced to shift from growing high value crops to lower value ones. It also raises the costs for consumers as countries have to import those products from other countries as they have lower domestic production, and the added transportation costs result in higher prices for grocery store items.
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I agree completely Stuart. Excess regulation in the EU hinders many industries, not just Agriculture. Having lived in France for 6 years my experience noted many things they did right, even more were misguided. The desired cultural experience is not a result of regulation, but these regulations are chipping away at the culture.