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GM Food Crop Technology and Trade Measures: Some Economic Implications for Australia and New Zealand

Author

Listed:
  • Kym Anderson

    (World Bank)

  • Lee Ann Jacskon

    (WTO Secretariat, Geneva)

Abstract

How much might the potential economic benefit from a farm productivity boost 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 GTAP model to estimate effects of other countriesÂ’ 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 de facto moratorium on imports from GM-adopting countries by the EU was maintained, but not if Northeast Asia also applied such a ban. From those gross economic effects would need to be subtracted societyÂ’s evaluation of any new food safety concerns and negative environmental externalities (net of any new environmental and occupational health benefits).

Suggested Citation

  • Kym Anderson & Lee Ann Jacskon, 2004. "GM Food Crop Technology and Trade Measures: Some Economic Implications for Australia and New Zealand," Centre for International Economic Studies Working Papers 2004-08, University of Adelaide, Centre for International Economic Studies.
    • Handle: RePEc:adl:cieswp:2004-08
    as

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    File URL: http://www.adelaide.edu.au/cies/papers/0408.pdf
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    References listed on IDEAS

    as
    1. Stone, Susan F. & Matysek, Anna & Dolling, Andrew, 2002. "Modelling Possible Impacts of GM Crops on Australian Trade," Staff Research Papers 31913, Productivity Commission.
    2. Sheldon, Ian M. & Josling, Timothy E., 2002. "Biotechnology Regulations And The Wto," Working Papers 14594, International Agricultural Trade Research Consortium.
    3. Meijl, Hans van & Tongeren, Frank van, 2004. "International diffusion of gains from biotechnology and the European Union's Common Agricultural Policy," Agricultural Economics, Blackwell, vol. 31(2-3), pages 307-316, December.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • 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; Animal Welfare Policy

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