Page 25 - ARUBA TODAY

BUSINESS Tuesday 6 June 2017
A25

1st farmer lawsuit on deck against Syngenta over China trade

By JIM SUHR of genetically modified damage to U.S. farmers to Attorneys can see how ju- was just a small market for
Associated Press corn seeds before China be $5.77 billion; another ries react and determine U.S. corn in 2010 when Syn-
KANSAS CITY, Kan. (AP) — approved importing it. Syn- pegged it at $4.68 billion. whether to settle other cas- genta launched Viptera.
The first of tens of thousands genta invested over $100 Most plaintiffs didn’t grow es or take them to trial. The company says it was
of U.S. lawsuits headed to million and 15 years in de- Viptera, but China exclud- A few thousand other less larger market forces, and
trial on Monday in Kansas veloping Viptera, which has ed their grain, too, because advanced cases have not China’s decision, that
against Swiss agribusiness a trait called MIR162 that elevators and shippers typi- been consolidated with drove prices down.
giant Syngenta over its de- protects against pests such cally mix grain from large a federal judge in Illinois, Jones said corn prices fell
cision to introduce a ge- as earworms, cutworms, ar- numbers of suppliers, mak- while lawsuits by grain han- sharply in 2013, even be-
netically engineered corn fore China rejected its
seed variety to the U.S. first shipment, because of
market before China ap- a bumper U.S. crop that
proved it for imports. brought prices down from
The lawsuits allege Syn- record highs.
genta’s move wrecked Jurors will see evidence
an increasingly important that the rejections conve-
export market for U.S. corn niently let the Chinese walk
and resulted in price drops away from contracts they
that hurt all producers. signed when prices were
Court filings show Syngenta much higher, he said.
aggressively marketed the
seeds even when it knew ABOUT THE JUDGE
Chinese approval was go- Yale-educated John Wat-
ing to be a problem. son Lungstrum, appointed
Plaintiffs’ experts estimate to the federal bench in
the economic damage 1991 by then-President
at about $5 billion, though George H.W. Bush, is a Kan-
Syngenta denies its actions sas City, Missouri, native,
caused any losses for farm- This photo shows the suburban Minneapolis headquarters of Syngenta in Minnetonka, Minn. A national merit scholar and
ers. lawsuit headed to trial Monday, June 5, against Swiss agribusiness giant Syngenta over its deci- Army veteran who got his
Monday’s trial in Kansas sion to introduce a genetically engineered corn seed variety to the U.S. market before China law degree from the Uni-
City, Kansas, involves four approved it for imports. versity of Kansas, where he
Kansas farmers represent- (AP Photo/Jim Mone) served as editor-in-chief of
ing roughly 7,300 farmers the school’s law review.
from that state, according myworms and corn borers. ing it difficult to source corn dlers including Cargill and He served as the Kansas
to William Chaney, an at- With U.S. government ap- that was free of the trait. So Archer Daniels Midland are district’s chief federal judge
torney for the plaintiffs. proval, Syngenta began they say all farmers were pending in Louisiana. from 2001 through 2007.
It will mark the first test case. selling Viptera in the U.S. for hurt by the resulting price
The second, involving the 2011 growing season. drop. SYNGENTA’S DEFENSE THE TIMING
about 60,000 cases, goes But China didn’t approve it Syngenta attorney Mike The Kansas trial comes as
to trial July 10 in a state until December 2014. THE LEGAL LANDSCAPE Jones said the company ChemChina — a state-
court in Minnesota, where Court papers show that The Kansas litigation has sold a legal product fully owned conglomerate also
Syngenta’s North American Syngenta initially assured been consolidated before approved for sale in the known as China National
seed business is based in stakeholders that China U.S. District Judge John U.S. and other key import- Chemical Corp. — closes in
suburban Minneapolis. would approve MIR162 Lungstrum in Kansas City, ing countries, and that on its $43 billion acquisition
The two cases are meant to in time for the 2011 crop. Kansas, where the trial is it complied with industry of Syngenta.
provide guidance for how But the date kept slipping. scheduled to take at least standards for international Chinese companies are
the complex web of litiga- Some exporters sent ship- 20 days. marketing. engaged in a multibillion-
tion in state and federal ments containing the trait The Kansas trial and the The company also argues dollar global buying spree
courts could be resolved. to China anyway. one in Minnesota will serve that China’s rejection had to acquire technology and
A look at some of the issues: After two years of accept- as bellwether trials, which no meaningful impact on brands to improve their
ing them, China began re- courts often use when U.S. corn prices. competitive edge as explo-
THE PROBLEM jecting them in late 2013. there are large numbers of Syngenta points to U.S. De- sive growth in their home
Syngenta decided to com- One expert working for lawsuits concerning similar partment of Agriculture economy slows.q
mercialize its Viptera brand the plaintiffs estimated the legal issue. figures showing that China