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Trade-related issues in the regulation of genetically modified organisms

Author

Listed:
  • Olivier Cadot
  • Akiko Suwa-Eisenmann
  • Daniel Traça

    ()

Abstract

This paper examines some of the trade-related aspects of the transatlantic conflict over agricultural biotechnology regulation. We first review the notion of 'regulatory protectionism' and the difficulties arising in its definition. We also discuss its economic rationale in the light of the strategic trade policy literature. Next, we turn to an empirical assessment of the trade effects of EU biotechnology regulations, verifying the evidence in support of US claims that those regulations have hurt US agricultural exports. Preliminary econometric results at a disaggregated level seem to indicate that there was no shock on US exports of corn seeds for planting in the years 1997-2000, but that there was a negative shock on other types of corn, suggesting that downstream traders and food retailers' private decisions not to purchase GM products were more important than cultivation bans in explaining any drop in US corn exports to the EU. Evidence for soybeans points to a price effect. The paper then turns to a comparison of GMO regulation in the US and EU, assessing the importance of trade vs. non-trade issues.

Suggested Citation

  • Olivier Cadot & Akiko Suwa-Eisenmann & Daniel Traça, 2001. "Trade-related issues in the regulation of genetically modified organisms," Research Unit Working Papers 0203, Laboratoire d'Economie Appliquee, INRA.
  • Handle: RePEc:lea:leawpi:0203
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    File URL: http://www.inra.fr/Internet/Departements/ESR/UR/lea/documents/wp/wp0203.pdf
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    Cited by:

    1. Mauro Vigani & Valentina Raimondi & Alessandro Olper, 2010. "GMO Regulations, International Trade and the Imperialism of Standards," LICOS Discussion Papers 25510, LICOS - Centre for Institutions and Economic Performance, KU Leuven.

    More about this item

    Keywords

    biotechnology; regulatory protectionnism;

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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