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China, GMOs and World Trade in Agricultural and Textile Products

  • Anderson, Kym
  • Yao, Shunli

China has always strived for self-sufficiency in farm products, particularly staple foods. Its rapid industrialization following its opening up to global markets during the past two decades has been making that more difficult, and its accession to the WTO may add to that difficulty. New agricultural biotechnologies could ease that situation. The adoption and spread of some of those biotechnologies in agriculture have, however, raised concerns, particularly over the environmental and food safety effects of genetically modified organisms (GMOs). This Paper focuses on possible implications of the GMO controversy for China, since it is prospectively not only a major producer and consumer of GM farm products but also a potential exporter of some of them. It explores the potential economic effects of China not adopting versus adopting GMOs when some of its trading partners adopt that technology. The effects are shown to depend to a considerable extent on the trade policy stance taken in high-income countries opposed to GMOs and/or to liberalization of China’s trade in textiles and apparel.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3171.

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Date of creation: Jan 2002
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Handle: RePEc:cpr:ceprdp:3171
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  1. Carl Pray & Danmeng Ma & Jikun Huang & Fangbin Qiao, 2001. "Impact of Bt Cotton in China," CEMA Working Papers 510, China Economics and Management Academy, Central University of Finance and Economics.
  2. José Benjamin Falck-Zepeda & Greg Traxler & Robert G. Nelson, 2000. "Surplus Distribution from the Introduction of a Biotechnology Innovation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 360-369.
  3. Terrie L. Walmsley & Thomas W. Hertel, 2001. "China's Accession to the WTO: Timing is Everything," The World Economy, Wiley Blackwell, vol. 24(8), pages 1019-1049, 09.
  4. Falcon, Walter P., 2000. "Globalizing Germ Plasm: Barriers, Benefits and Boundaries," 2000 Conference, August 13-18, 2000, Berlin, Germany 197185, International Association of Agricultural Economists.
  5. Kyle Bagwell & Robert W. Staiger, 1999. "Domestic Policies, National Sovereignty and International Economic Institutions," NBER Working Papers 7293, National Bureau of Economic Research, Inc.
  6. Anderson, Kym, 2000. "Agriculture's 'multifunctionality' and the WTO," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), September.
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