The Greens continue to express fears that planned changes to gene technology regulations across the country will impact Tasmania's GMO-free brand.
The party last week sought to disallow the Gene Technology Amendment bill which will allow use of a certain gene-editing technique to fall outside the definition of a genetically modified organism.
The Greens say the deregulation of genetic modification technologies under the bill will mean there will be no tracking in the production or the release of genetically modified organisms.
The disallowance motion failed to win support from the major parties and was voted down.
Tasmanian Greens senator Peter Whish-Wilson said the changes would undermine Tasmania's brand and farmers and would diminish the state's competitive strengths.
"Many Tasmanian farmers, such as the beef industry, have fought hard to keep our brand GMO-free," he said.
"This is a smart business decision that leverages off Tasmanian's clean, green brand.
"There's a huge demand globally for GMO-free produce and Tasmania has worked hard to carve out a niche and capture that market."
Senator Jonathon Duniam during last week's debate said the changes would not compromise Australia's robust gene technology regulatory system.
"These updates strengthen regulations for the vast majority of gene-editing techniques which must undergo stringent safety assessments," he said.
"The updates will provide great benefits in the area of medical research.
"Medical researchers will be able to move more quickly through the concept work and progress to clinical trials with patients."
The state government recently extended its GMO moratorium by 10 years.
The Primary Industries Department will conduct regular reviews of developments within the gene technology area which could trigger a review of the government's policy if warranted.
Reviews in 2003, 2007, and 2013 had found no reason to lift the moratorium.
Only Tasmania, South Australia and the Australian Capital Territory are declared GMO-free jurisdictions.