The European Commission has angrily described as "unacceptable", US President George W Bush's accusation that the European Union is starving developing countries because of its ban on Genetically Modified Organisms (GMOs).
The riposte was made by EU Trade Commissioner Mr Pascal Lamy on the day the EU introduced new measures to provide cheaper drugs to developing countries.
Mr Lamy said Mr Bush's comments last week in which he said the EU's policy on biotech foods was hindering efforts to fight famine in Africa were "going much too far".
"It is one thing not to have the same feeling on the level of precautions one must take over GMOs ... [but] to accuse for example the EU of starving the Third World because we don't stuff them with GMO surpluses or to use this kind of argument, that is clearly going much to far, that is absolutely unacceptable," he said.
President Bush, who is travelling to Europe this week, scolded the EU on aid to poor nations last Wednesday, saying the EU ban on GMOs was an obstacle to battling widespread starvation.
"Our partners in Europe are impeding this effort. They have blocked all new biocrops because of unfounded, unscientific fears," he said.
"This has caused many African nations to avoid investing in biotechnologies, for fear that their products will be shut out of European markets. European governments should join - not hinder - the great cause of ending hunger in Africa," he said.
Mr Lamy was speaking after the EU today adopted a plan to open up the delivery of cut-price medicines for deadly illnesses like AIDS to developing countries.
The regulations aim to enable producers to significantly increase supplies of medicines to combat HIV/AIDS, malaria and tuberculosis at lower, or 'tiered' prices, while keeping higher prices for the same items in the EU.
In order to be added to the list, medicines have to be made available either with a price cut of 75 per cent off the average 'ex factory ' price in OECD countries, or at the cost of production plus 15 per cent.
The products on the list will all carry a logo allowing customs to easily identify them.
Being on this list and bearing the logo will mean that imports of these products into the EU for free circulation, re-exportation, warehousing or trans-shipment will be prohibited.
Re-importation into the EU is also prohibited from the 76 countries listed under the new regulations, including least developed countries, and low-income countries , and those where HIV/AIDS is particularly prevalent.
Mr Lamy has welcomed the decision and said the measures should be seen as part of a wider plan to improve the health situation in developing countries.
Separate discussions are underway at the World Trade Organisation on terms under which countries in need of medicines may invoke compulsory licences to manufacture them.
The EU believes that if poorer countries get their medicines via a tiered-pricing system, they should not need to invoke compulsory licences. If the system is perceived to work, it could be extended to more countries and treatments.
Additional reporting AFP