GM-free private standards and their effects on biosafety decision-making in developing countries
AbstractWe provide a comprehensive review of international cases where GM-free private standards set up by food companies in developed countries have influenced biosafety policymaking in developing countries. We find twenty-nine cases where private importers have directly or indirectly affected policy decisions in twenty-one countries. Most of the cases relate irrational fear of export losses to excessively precautionary decisions. These cases are based on two generally misleading premises: the belief that Europe or Japan represents the only market for exports, and the perception that non-GM segregation is infeasible or prohibitively costly in all situations. Our study also demonstrates the importance of information asymmetries across countries and agents and the role of risk aversion in seemingly irrational decision making. The combination of these four factors helps us explain why presumed but unproven expected commercial losses still represents a significant impediment to biosafety policymaking in developing countries.
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Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51334.
Date of creation: 2009
Date of revision:
Agricultural biotechnology; private standards; political economics.; Agricultural and Food Policy; International Relations/Trade; Political Economy; Q17; Q18;
Other versions of this item:
- Gruère, Guillaume & Sengupta, Debdatta, 2009. "GM-free private standards and their effects on biosafety decision-making in developing countries," Food Policy, Elsevier, vol. 34(5), pages 399-406, October.
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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