The EU Commissioner for Health and Consumer Protection said the Precautionary Principle "is a legitimate regulatory tool to be used in particular circumstances such as where a risk is identified but the scientific consensus is uncertain as to either its nature or its extent." More on GM & Precuationary Principle (use "search").The EU used the principle in 1999 to halt the application for a genetically modified maize seed because of concerns with the Monarch butterfly.

European
If an organic farmer faced economic losses, or lost organic status/licence through GM contamination, they would not be able to claim compensation from anywhere - the loss is said to 'lie where it falls'. Equally the burden of harm and/or loss to the environment would have to be bourne by society. In contrast, a GM farmer can claim compensation for a crop that does not grow properly through their contract with the GM company. Insurance companies will currently NOT insure organic and convential farmers against GM cross-contamination.

Friends of the Earth state "Currently there is no legislation to require biotech companies to pay compensation or clear up any damage caused by their crops. If GM food and crops are as safe as the industry says they are, why won't it accept liability for any damage caused?" full story FoE Liability and GM crops (Pdf) Oct 2002

The USA, EU & WTO The US plans to sue the European Union at the World Trade Organisation unless it allows the sale of GM foods and crops. On 13 May 2003 the United States said that it would be joined by Argentina, Canada and Egypt in filing a World Trade Organisation (WTO) case against Europe over "its illegal five-year moratorium on approving agricultural biotech products". But the Egyptian Government says that it has decided "not to become a party" to the WTO complaint. More

Cartegena Protocol
The Cartagena Protocol on Biosafety allows countries to demand proper notification and risk assessment of GM crop imports. Based on the precautionary principle, countries are also allowed to deny such imports. The USA have not signed the Convention on Biological Diversity, but have been trying to stop these implementations.