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GM crop technology and trade restraints: economic implications for Australia and New Zealand

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  • Kym Anderson
  • Lee Ann Jackson

Abstract

How much might the potential economic benefit from enhanced farm productivity associated with crop biotechnology adoption by Australia and New Zealand (ANZ) be offset by a loss of market access abroad for crops that may contain genetically modified (GM) organisms? This paper uses the Global Trade Analysis Project (GTAP) model to estimate effects of other countries' GM policies without and with ANZ farmers adopting GM varieties of various grains and oilseeds. The gross economic benefits to ANZ from adopting GM crops under a variety of scenarios could be positive even if the strict controls on imports from GM‐adopting countries by the European Union are maintained, but not if North‐East Asia also applied such trade restaints. From those gross economic effects would need to be subtracted society's evaluation of any new food safety concerns and negative environmental externalities (net of any new environmental and occupational health benefits), as well as any extra costs of segregation, identity preservation and consumer search.

Suggested Citation

  • Kym Anderson & Lee Ann Jackson, 2005. "GM crop technology and trade restraints: economic implications for Australia and New Zealand," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(3), pages 263-281, September.
  • Handle: RePEc:bla:ajarec:v:49:y:2005:i:3:p:263-281
    DOI: 10.1111/j.1467-8489.2005.00306.x
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    File URL: https://doi.org/10.1111/j.1467-8489.2005.00306.x
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    8. Andrei Sobolevsky & GianCarlo Moschini & Harvey Lapan, 2005. "Genetically Modified Crops and Product Differentiation: Trade and Welfare Effects in the Soybean Complex," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 621-644.
    9. Bullock, D. S. & Desquilbet, M., 2002. "The economics of non-GMO segregation and identity preservation," Food Policy, Elsevier, vol. 27(1), pages 81-99, February.
    10. Sallie James & Michael Burton, 2003. "Consumer preferences for GM food and other attributes of the food system," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 501-518, December.
    11. Chantal Nielsen & Kym Anderson, 2001. "Global market effects of alternative European responses to genetically modified organisms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(2), pages 320-346, June.
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    Cited by:

    1. Bakucs, Lajos Zoltan & Ferto, Imre, 2010. "Expected Impacts Of Biotechnology On Food Safety In Central And Eastern European Countries," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 187980, International Consortium on Applied Bioeconomy Research (ICABR).
    2. Kym Anderson & Peter Lloyd & Donald Maclaren, 2007. "Distortions to Agricultural Incentives in Australia Since World War II," The Economic Record, The Economic Society of Australia, vol. 83(263), pages 461-482, December.
    3. Maciejczak, Mariusz, 2015. "Will the institution of coexistence be re-defined by TTIP?," GMCC-15: Seventh GMCC, November 17-20, 2015, Amsterdam, the Netherlands 211478, International Conference on Coexistence between Genetically Modified (GM) and non-GM based Agricultural Supply Chains (GMCC).
    4. Crowe, Bronwyn & Pluske, Johanna M., 2006. "Is it Cost Effective to Segregate Canola in WA?," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 14.
    5. Kaye-Blake, William & Saunders, Caroline M., 2006. "Estimated Contribution of Four Biotechnologies to New Zealand Agriculture," 2006 Annual meeting, July 23-26, Long Beach, CA 21133, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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