The article is focused on basic issues of the EU legislation in the area of GMOs and GM products. The treatment of genetically modified organisms and products has been regulated in the European Union since beginning of 90's. The so called precautionary principle is the basic principle of EU legislation in this field. Therefore, the primary goal of legislation is to protect the environment and health. Contemporary EU legislation consists of three main groups dealing with harmonisation of authorisation procedure, labelling and traceability of GMOs and GM products and implementation of Cartagena Protocol in relation to transboundary movements of GMOs. The strict EU legal framework for GMOs has caused problems within international trade, particularly with USA, Canada and Argentina.