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Legal But Costly: An Analysis of the EU GM Regulation in the Light of the WTO Trade Dispute Between the EU and the USA

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  • Maarten J. Punt
  • Justus Wesseler

Abstract

type="main" xml:id="twec12353-abs-0001"> In this study, we investigate the new European Union (EU) regulations in the light of the ruling by the World Trade Organization (WTO) panel on the trade in genetically modified crops. To this end, we describe: the basic differences in approaches between the EU and the complaining parties with regard to genetically modified crops, what the main arguments were of the complaining parties as well as the defence of the EU, what the final judgement of the panel was and finally, we describe the current EU regulations. We then analyse to what extent, the arguments and conclusions of the panel still hold regarding the new EU legislation. We find that parts of the current EU legislation, that is, the safety bans as they are currently in place, are in breach of the WTO commitments. Moreover, the new approval procedures have the potential to also break these rules, although whether or not they will, depends on how the European Commission acts. Whether or not the EU will be challenged at the WTO remains an open question, as the decision to fight before the WTO may be more costly than working out new bilateral trade agreements.

Suggested Citation

  • Maarten J. Punt & Justus Wesseler, 2016. "Legal But Costly: An Analysis of the EU GM Regulation in the Light of the WTO Trade Dispute Between the EU and the USA," The World Economy, Wiley Blackwell, vol. 39(1), pages 158-169, January.
    • Handle: RePEc:bla:worlde:v:39:y:2016:i:1:p:158-169
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    File URL: http://hdl.handle.net/10.1111/twec.2016.39.issue-1
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    Citations

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    Cited by:

    1. Fátima Quedas & João Ponte & Carlos Trindade & Maarten Punt & Justus Wesseler, 2016. "Special Issue on GMO Coexistence," EuroChoices, The Agricultural Economics Society, vol. 15(1), pages 59-63, April.
    2. Richard D. Smart & Matthias Blum & Justus Wesseler, 2017. "Trends in Approval Times for Genetically Engineered Crops in the United States and the European Union," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 182-198, February.
    3. Hartigan, James C. & McMahon, Joseph A., 2022. "A fuzzy look at a fuzzy agreement: Risk management under the WTO SPS Agreement," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 272-284.
    4. Richard Danvers Smart & Matthias Blum & Justus Wesseler, 2016. "Trends in Genetically Engineered Crops' Approval Times in the United States and the European Union," Economics Working Papers 16-03, Queen's Management School, Queen's University Belfast.
    5. Kai Purnhagen & Justus Wesseler, 2021. "EU Regulation of New Plant Breeding Technologies and Their Possible Economic Implications for the EU and Beyond," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1621-1637, December.
    6. Tagliabue, Giovanni, 2017. "“GMO” maize and public health – A case of Schumpeterian policy vs. free market in the EU," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(3), February.

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