"The suggestions made by the United States are simply not true," European Commission spokesman Gerassimos Thomas told a daily news briefing, adding that the 15-nation E.U. handed out seven times more development aid than the United States.
The latest war of words in the long-running biotech dispute came on the eve of an E.U.-U.S. summit in Washington on Wednesday when the world's two biggest economies hope to mend diplomatic fences after falling out over Iraq.
"It is false that we are antibiotechnology or antideveloping countries," Thomas said.
Bush told a biotechnology conference on Monday the E.U. should lift its restrictions on GM foods "for the sake of a continent threatened by famine." (Full story)
Last year, some African countries rejected U.S. food aid as it contained GM grain which they feared could be used as seed which might threaten future exports to the E.U. which is setting tight restrictions on imports of GM food.
The E.U. has rejected U.S. calls to reassure developing countries that they should accept GM organisms which are routinely eaten by U.S. citizens but are practically banned in many E.U. countries.
The United States, Argentina and Canada, which grow 95 percent of the world gene-altered crops, have launched a trade suit against the E.U.'s unofficial ban on most GM crops which has hampered GM exports to the bloc for the last five years.