October 28, 2003

Brazil's GM Soy Could Put Trade Revenues At Risk
 

Brazil's uncertainty on how to regulate genetically modified soy could threaten its vibrant source of growth and trade revenues for the recession-beset economy, analysts said on Monday.

As the federal government bickers over a long-awaited draft bill on biotechnology, the populist anti-GM governor of No. 2 soybean growing state Parana, Roberto Requiao, has effectively shut off Brazil's main soy port by declaring Parana GM-free.

"The potential for loss under Parana's policy is enormous and the port may be greatly hurt," said grains analyst Flavio Franca Jr. of Safras e Mercado. "Most importantly though, this is going to be a problem for the entire country."

Soy is Brazil's leading farm export, which is expected to register 10% gain of total trade revenues this year.