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

Kym Anderson and Lee Ann Jacskon
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Lee Ann Jacskon: WTO Secretariat, Geneva

No 2004-08, Centre for International Economic Studies Working Papers from University of Adelaide, Centre for International Economic Studies

Abstract: 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).

Keywords: Biotechnology; GMOs; regulation; trade policy; computable general equilibrium. (search for similar items in EconPapers)
JEL-codes: C68 D58 F13 O3 Q17 Q18 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2004-11
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