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Market effects of information requirements under the Biosafety Protocol

Antoine Bouët, Guillaume Gruère () and Laëtitia Leroy de Morel ()

International Economics, 2013, issue 134, 15-28

Abstract: This paper assesses the global economic implications of the proposed strict documentation requirements on traded shipments of potentially genetically modified (GM) commodities under the Cartagena Protocol on Biosafety. Using a spatial equilibrium model with 80 maize and 53 soybean trading countries, we show that information requirements would have a significant effect on the world market for maize and soybeans, distorting trade and generating welfare losses for all Protocol members and for non-members that produce GM maize and/or soybeans. While non-GM producers in Protocol member countries would benefit, the regulation would negatively impact consumers and producers in many developing countries.

Keywords: Genetically modified food; International trade; Cartagena Protocol on Biosafety (search for similar items in EconPapers)
JEL-codes: F14 F18 Q17 Q56 (search for similar items in EconPapers)
Date: 2013
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Handle: RePEc:cii:cepiie:2013-q2-134-2