Genetically Modified Food

Marie Kreipe
Genetically Modified Food
Trade Regulation in view of
Environmental Policy Objectives
Diplomica Verlag
Marie Kreipe
Genetically Modified Food: Trade Regulation in view of Environmental Policy
Objectives
ISBN: 978-3-8428-0013-7
Herstellung: Diplomica® Verlag GmbH, Hamburg, 2010
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Abstract
The controversial issue of genetically modified (GM) food is discussed in this
book. While the United States (US) is a strong supporter of GM technology
having adopted a rather lax regulation of trade with GM products, the European
Union (EU) is representing a sceptical position towards this new technology and
has even imposed a de facto moratorium on further approval of GM products
from 1998 to 2004. The purpose of this book is an extensive analysis of the
current status on risks and benefits of genetically modified organisms (GMOs)
and a suggestion on how an appropriate regulation of GM products could be
derived. Potential guidelines are provided for policy formulation both in a
qualitative and in a quantitative dimension. The US is applying the principle of
substantial equivalence, which means that GM products are in their substance
identical to products produced by conventional methods. Therefore, no new
regulations are necessary for the trade with GM products. In contrast, the
European Union (EU) disagrees that GM products are equivalent to their
conventional counterparts due to the different production process. Instead, the
EU refers to the precautionary principle in its GMO policy, meaning that trade
with GM products should be restricted until it will be proven that no additional
risks are implied by the use of these products. The divergence of opinions about
the right policy to regulate GM products has significant impacts on trade flows
and welfare effects. The US and the EU have already tried to resolve their
dispute before the World Trade Organization (WTO). Relevant laws of the
General Agreement on Tariffs and Trade (GATT) and the WTO are presented
as well as indications for a potential consensus.
I
Table of contents
Acronyms and abbreviations......................................................... V
List of figures ............................................................................... VIII
List of tables................................................................................. VIII
Introduction ......................................................................................1
1
Portrait: Genetically modified food ......................................3
1.1
Definition and characteristics of GM food..........................3
1.2
Negative impacts of GM food............................................7
1.2.1
Risks for human health .....................................................7
1.2.2
Risks for the environment .................................................8
1.3
Positive impacts of GM food ...........................................10
1.3.1
Benefits for farmers.........................................................10
1.3.2
Benefits for the environment ...........................................12
1.3.3
Benefits for consumers ...................................................14
1.3.4
Benefits for developing counties .....................................15
2
Trade policy: Two approaches ...........................................16
2.1
US: The "principle of substantial equivalence“ ................16
2.2
EU: The "precautionary principle“ ...................................18
3
The legal framework for trade with GMOs .........................22
3.1
Legislation of the World Trade Organization ...................22
3.1.1
Article I and III GATT (WTO)...........................................22
3.1.2
Article XI GATT (WTO) ...................................................23
3.1.3
Article XX GATT (WTO) ..................................................23
3.1.4
WTO Sanitary and Phytosanitary (SPS) Agreement .......24
3.1.5
WTO Technical Barriers to Trade (TBT) Agreement .......25
3.2
Cartagena Protocol on Biosafety ....................................25
3.3
Implications for the EU-US trade dispute on GMOs ........27
4
Tensions between GMO trade policy and environmental
policy objectives..................................................................30
4.1
Scientific findings about risks of GM food .......................30
4.2
GMO policy against the background of limited scientific
findings – qualitative approach........................................31
4.2.1
Utilitarian theory as a basis for policy formulation ...........32
III
4.2.2
Normative theory as a basis for policy formulation.......... 33
4.2.3
Behavior of consumers as a basis of policy formulation . 36
4.2.4
Behavior of biotech firms as a basis of policy
formulation ...................................................................... 39
4.3
GMO policy against the background of limited scientific
findings – quantitative approach ..................................... 46
4.4
Conclusions about the appropriate GMO policy.............. 48
5
Consequences for international trade ............................... 51
5.1
Trade flows and global welfare effects............................ 51
5.2
Potential protectionist behavior of the EU ....................... 53
5.3
Risk of an isolation of the EU from international trade .... 55
5.4
Recovery of international trade ....................................... 56
Conclusion ..................................................................................... 58
A
Appendices .......................................................................... 60
A.1
Negative and positive impacts of GMOs ......................... 61
A.2
The environmental impact quotient (EIQ) ....................... 63
A.3
GMO regulations by country groupings........................... 64
A.4
Multilateral agreements citing the precautionary
principles......................................................................... 67
A.5
Comparison of the US and the EU biotechnology
regulatory process .......................................................... 68
Bibliography................................................................................... 69
List of literature ................................................................................ 69
List of internet sources..................................................................... 80
IV
Acronyms and abbreviations
AIA
Advance Informed Agreement
ASA
American Medical Association
BBSRC
Biotechnology and Biological Sciences Research
Council
BSP
Cartagena Biosafety Protocol
Bt
Bacillus thuringiensis
Codex
Codex Alimentarius
DNA
Deoxyribonucleic acid
EC
European Commission
EFSA
European Food Safety Authority
EPC
European Parliament and Council
ESI
Environmental Sustainability Index
EU
European Union
EUCR
European Union Council Regulation
FAO
Food and Agriculture Organization of the United
Nations
FDA
US Food and Drug Administration
FD&C Act
Federal Food, Drug and Cosmetic Act
GATT
General Agreement on Tariffs and Trade
GDP
Gross Domestic Product
GM Crop
Genetically Modified Crop
GM Food
Genetically Modified Food
GMO
Genetically Modified Organism
GM Plant
Genetically Modified Plant
GM Product
Genetically Modified Product
V
GRAS
Generally Regarded As Safe
IPPC
International Plant Protection Convention
IPR
Intellectual Property Rights
ISAAA
International Service for the Acquisition of AgriBiotech Applications
JIC
John Innes Centre
Kanr
Kanamycin
LMO
Living Modified Organism
mRNA
messenger RNA
NAS
National Academy of Sciences
NIH
US National Institutes of Health
NLM
US National Library of Medicine
OECD
Organisation of Economic Co-operation and
Development
OIE
International Epizootics Organization
RA
Risk Assessment
rDNA
recombinant DNA
RNA
Ribonucleic Acid
R&D
Research and Development
SA
Safety Assessment
SPS Agreement
Agreement on Application of Sanitary and Phytosanitary Measures
TBT Agreement
Agreement on Technical Barriers to Trade
TEP
Trans-Atlantic Economic Partnership
TOI
Trade Openness Index
TOT
Terms-of-trade
VI
US
United States of America
WHO
World Health Organization
WSJ
Wall Street Journal
WTO
World Trade Organization
VII
List of figures
Figure 1–1:
Development of global GM crop area (area in
million hectares) ....................................................... 4
Figure 1–2:
GM crop area and global crop area for the four
principal GM crops 2005 (area in million hectares)... 5
Figure 2–1:
Two main approaches used for the regulation
of GM crops ............................................................ 16
Figure 4–1:
The causal relationship between trade and GMOs. 40
Figure 4–2:
The relationship between trade openness and
environmental sustainability ................................... 45
Figure 4–3:
Biosafety regime scenarios and social costs .......... 47
List of tables
Table 1-1:
Global area of biotech crops in 2006 by country
(million hectares) ...................................................... 6
Table 1-2:
Impact of changes in the use of herbicides and
insecticides from growing GM crops globally,
1996-2004 .............................................................. 12
Table 1-3:
Impact of GM crops on carbon sequestration
impact in 2004 (car equivalents)............................. 14
Table 4-1:
Respondents grouped according to perceptions
of riskiness and usefulness .................................... 38
Table 5-1:
GM production share of global crop trade in 2004
(million tonnes) ....................................................... 52
VIII