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Associated Press | By SEAN YOONG | February 27, 2004

KUALA LUMPUR, Malaysia -- Europe and developing countries claimed a victory over the United States on Friday when a conference of more than 80 nations agreed to improve the labeling of genetically modified food shipments despite U.S. objections.

The United States warned other countries had rushed into decisions that might disrupt international trade.

"Our biggest disappointment is that countries are moving down a path away from practical steps very quickly in a direction that could have consequences," said Deborah Malac, chief of the U.S. Department of State's Biotechnology Trade Policy Division.

The European Union said it was pleased with the agreement, which observers said would force American companies to be more open about genetically modified products they export to signatory countries.

One immediate effect of Friday's agreement, environmentalists said, was that Mexico may be forced to renegotiate a biotech trade deal it signed with the United States and Canada last year.

The agreement marked the end of a conference on biotech safety and officials called it a major step toward enforcing global trade rules for biologically altered foods by late 2005.

The European-led bloc successfully lobbied for more detailed information in identification papers that accompany bio-engineered shipments. The United States, the world's largest exporter of genetically altered food, says such measures are unnecessary.

The measures form the basis for implementing the U.N. Cartagena Protocol, which aims to protect diversity of life from biotechnology's potential hazards by ensuring exporters give enough information about gene-altered products so that countries can choose whether to reject them.

"We are pleased, we have achieved our objectives," said Christoph Bail, the head of Global Biodiversity in the European Environment Commission. "The message that has been sent to the U.S. is that we are firm to make this protocol work. The message is, please do not try to undermine the protocol."

Dennis Olson, director of trade programs in the Institute for Agriculture and Trade Policy, a think tank based in Minneapolis, Minnesota, said the agreement meant U.S companies would need to boost transparency to convince European, African and Asian regulators that their products are safe.

The outcome would also strengthen the EU's hand in fighting a suit filed by the United States in the World Trade Organization last August that aims to lift a six-year European de facto moratorium against new biotech goods, Olson said.

The United States tussled with Europe and many developing nations about key issues involving the protocol throughout five days of talks in Kuala Lumpur. It was the first time countries formally discussed the protocol since it took effect last September.

Washington was allowed to voice its opinions but not to participate in making decisions because it has not signed the protocol, which has been ratified by 86 countries and the EU so far.

Malaysian Science, Technology and Environment Minister Law Hieng Ding said the outcome was "a historic event" that has "given teeth to the protocol."

On Friday, delegates agreed that shipment documents should contain the scientific name and characteristics of genetically modified ingredients.

Greenpeace spokeswoman Doreen Stabinsky said Mexico - which has ratified the protocol - may have to renegotiate a biotech trade agreement it signed with the United States and Canada because that pact fails to meet the new documentation requirements.

Most governments are expected to set up new facilities to evaluate genetically altered shipments and specialized customs offices to enforce the protocol by September 2005.Associated Press: