The Case For and Against Import Embargoes on Products of Biotechnology
This article examines alternative trade policy responses available to an importing country with concerns over innovations in biotechnology. Regardless of the policy response, the importing country may be worse off after a new genetically modified food (GMF) is introduced. While an import embargo may be preferable to allowing free access to unlabelled GMF imports, permitting labelled imports is typically superior to an embargo. Thus, import embargoes on products of biotechnology should not be generally allowed. The paper provides surprising support for the existing WTO provisions on Technical Barriers to Trade, but suggests significant potential problems with the recently negotiated Biosafety Protocol.
Volume (Year): 01 (2000)
Issue (Month): 01 ()
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- Perdikis, Nicholas & Kerr, William A. & Hobbs, Jill E., 2000. "Can The Wto/Gatt Agreements On Sanitary And Phyto-Sanitary Measures And Technical Barriers To Trade Be Renegotiated To Accommodate Agricultural Biotechnology?," Proceedings:Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 25999, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
- George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
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