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

  • Kym Anderson

    ()

    (World Bank)

  • Lee Ann Jacskon

    (WTO Secretariat, Geneva)

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).

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Paper provided by University of Adelaide, Centre for International Economic Studies in its series Centre for International Economic Studies Working Papers with number 2004-08.

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Length: 40 pages
Date of creation: Nov 2004
Date of revision:
Handle: RePEc:adl:cieswp:2004-08
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  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. van Tongeren, Frank W. & van Meijl, Hans, 2003. "International Diffusion Of Gains From Biotechnology And The European Union'S Common Agricultural Policy," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25835, International Association of Agricultural Economists.
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