EU traders may halt rapeseed purchase in Australia

Some EU grain traders have warned Western Australia (WA) they will reconsider buying the state's canola after it lifted a ban on genetically modified (GM) crops, an activist said.

GeneEthics spokesman Bob Phelps on Monday released a letter from EU traders AgroTrace, Eurograin and Holtermann, sent to Western Australia Premier Colin Barnett on February 26.

The traders say they must respond to Europe's resistance to GM foods, and urge the government to reinstate the ban on GM.

The state government allowed farmers to grow GM canola on January 25, bringing WA into line with NSW and Victoria. Phelps said the correspondence should have been revealed during last week's disallowance motion in state parliament.