In his first appearance before the European Parliament since his confirmation hearing in January, he said he is in favour of science-based policymaking and "sustainable innovation".
However, he warned that an "instinctive fear and suspicion" had taken hold among European consumers due to scaremongering and a reluctance of industry to explain the science behind their products.
"Lack of action by industry allows scaremongers to monopolise the media, leaving consumers to make decisions based on a one-sided debate," said Dalli.
He said that whenever all the legal criteria have been met, there is no need to delay progress. "Surely we cannot be responsible for reducing Europe to an innovation backwater," he said.
Dalli has been the target of a high-profile campaign by Greenpeace after approving a number of new GM products soon after taking office.
Science-based policy making
"My fundamental approach is very simple. I am not in favour or against GMOs, but I follow science-based policymaking," he told MEPs.
Dalli will meet ten environmental NGOs on Thursday to discuss GMOs and a range of other issues and called on all stakeholders to "tone down" their rhetoric to "a rational level".
"I have also told Croplife [a plat biotech group] that they must engage with the public on GMO information. Innovators have a responsibility to explain the benefits of their products to consumers. Trust cannot be taken for granted. It must be earned," the commissioner said.
Reviews of cloning, tobacco and research laws
He said the Commission will produce a report on cloning by the end of the year, and will also revise legislation on tobacco, clinical trials and veterinary medicine to address shortcomings. Medical devices legislation will also be reviewed including in vitro diagnostics.
In addition, Dalli renewed optimism that EU member states could reach agreement on cross-border health care by June. The Spanish Presidency has put forward a compromise, he said, although it departs from what had originally been proposed by the Commission.
He congratulated the European Parliament on its progress in pushing ahead with two of the three elements of the pharmaceuticals package, and called for progress on a controversial directive on information to patients.
