Cargill Inc reported in court documents Sept. 12 of $90 million damages as a result of Syngenta reportedly selling GMO Agrisure Viptera corn (MIR 162) to U.S. farmers without an import approval from China, contaminating the U.S. grain supply.
As a result, tons of the U.S. corn seeds were taken back and rejected by China in November 2013, crippling the agriculture sector over $2.9 billion in losses, according to the National Grain and Feed Association.
The MIR 162 variety needs to be separated from other varieties to prevent the products be imported to other countries without an approval from them.
The lawsuit will determine the company answerable for the rejections that impaired agricultural trade between the two countries.
The seed companies which produced the unapproved GMO seeds or the persons who sell the seeds infected with the GMO traits are considered as primary suspects in the case.
GMO crops comprise of almost 90 percent of the corn produced in the U.S., as GMO crops are able to uproot weeds and prevent pests.
Having the crops approved first by importers is an important step as the harvest season is expected to produce 14.395 million bushels, exceeding the demand of 11.855 billion.
Cargill stated that getting an approval from China takes two to three years, while cultivation approval takes longer.
China is very careful on receiving GMO crops as Chinese consumers are concerned of its safety, environmental impact and possible adverse health effects.
U.S. is dubbed as the "world's top grains producer," have faced a similar conundrum back in 2000 after an unapproved corn variety known as "Starlink" was exposed in a U.S. shipment to Japan.The event led to U.S losing two of its biggest patrons, Japan and South Korea.
