The recent European Union (EU) draft legislation on labeling and tracing all food and feed consisting of, containing, or produced from genetically modified (GM) organisms has the potential to significantly affect long-run U.S. agricultural exports to Europe. For the last three years, a de facto moratorium has halted approval of new GM varieties in the EU. Whereas the proposed new EU legislation may help resolve this impasse, the details of this draft legislation are raising considerable concern in the U.S. agricultural community and, if approved, are likely to give rise to a serious trade dispute within the World Trade Organization.