How are GM foods labeled?

Labeling of GM foods and food products is also a contentious issue. On the whole, agribusiness industries believe that labeling should be voluntary and influenced by the demands of the free market. If consumers show preference for labeled foods over non-labeled foods, then industry will have the incentive to regulate itself or risk alienating the customer. Consumer interest groups, on the other hand, are demanding mandatory labeling. People have the right to know what they are eating, argue the interest groups, and historically industry has proven itself to be unreliable at self-compliance with existing safety regulations. The FDA's current position on food labeling is governed by the Food, Drug and Cosmetic Act which is only concerned with food additives, not whole foods or food products that are considered "GRAS" - generally recognized as safe. The FDA contends that GM foods are substantially equivalent to non-GM foods, and therefore not subject to more stringent labeling. If all GM foods and food products are to be labeled, Congress must enact sweeping changes in the existing food labeling policy.
There are many questions that must be answered if labeling of GM foods becomes mandatory. First, are consumers willing to absorb the cost of such an initiative? If the food production industry is required to label GM foods, factories will need to construct two separate processing streams and monitor the production lines accordingly. Farmers must be able to keep GM crops and non-GM crops from mixing during planting, harvesting and shipping. It is almost assured that industry will pass along these additional costs to consumers in the form of higher prices.
Secondly, what are the acceptable limits of GM contamination in non-GM products? The EC has determined that 1% is an acceptable limit of cross-contamination, yet many consumer interest groups argue that only 0% is acceptable. Some companies such as Gerber baby foods⁴² and Frito-Lay⁴³ have pledged to avoid use of GM foods in any of their products. But who is going to monitor these companies for compliance and what is the penalty if they fail? Once again, the FDA does not have the resources to carry out testing to ensure compliance.
What is the level of detectability of GM food cross-contamination? Scientists agree that current technology is unable to detect minute quantities of contamination, so ensuring 0% contamination using existing methodologies is not guaranteed. Yet researchers disagree on what level of contamination really is detectable, especially in highly processed food products such as vegetable oils or breakfast cereals where the vegetables used to make these products have been pooled from many different sources. A 1% threshold may already be below current levels of detectability.
Finally, who is to be responsible for educating the public about GM food labels and how costly will that education be? Food labels must be designed to clearly convey accurate information about the product in simple language that everyone can understand. This may be the greatest challenge faced be a new food labeling policy: how to educate and inform the public without damaging the public trust and causing alarm or fear of GM food products.
In January 2000, an international trade agreement for labeling GM foods was established^{44, 45}. More than 130 countries, including the US, the world's largest producer of GM foods, signed the agreement. The policy states that exporters must be required to label all GM foods and that importing countries have the right to judge for themselves the potential risks and reject GM foods, if they so choose. This new agreement may spur the U.S. government to resolve the domestic food labeling dilemma more rapidly.