Chapter 13 Global Welfare and Trade-Related Regulations of GM Food: Biosafety, Markets, and Politics

Purpose – The chapter provides a comprehensive review of trade-related regulations of genetically modified (GM) food, identifies their main effects, and analyzes the main motivations behind their support. Methodology/approach – The analysis is substantiated by (a) results from the literature on GM food regulations and (b) comparative statics results from a simplified three-country partial equilibrium welfare and political economic model. Findings – The analysis shows that in a non-GM producing country, trade-related regulations will benefit producers, but not necessarily consumers. Producers' support is found to be instrumental to push for a ban, for information requirements on shipments, or for mandatory labeling of GM food products. Outside pressure groups will play the role of swing voters in cases where consumers and producers do not agree. Research limitations/implications – The analytical model is based on simplifying assumptions on the groups and market effects of each regulation. Future research is needed to empirically validate some of the main results. Originality/value of the chapter – The goal of the chapter is to inform economic and policy researchers on the effects of GM food trade-related regulations. The chapter provides an updated comprehensive overview of the key trade regulations of GM food. It uses a unique model to derive the main welfare effects of GM food regulations. By comparing the effects of GM food regulations in different types of countries for different pressure groups, the findings provide new insights in this area.