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Labeling Demands, Coexistence and the Challenges for Trade

Author

Listed:
  • Smyth Stuart

    (Department of Agricultural and Resource Economics, University of Saskatchewan, 51 Campus Drive, Saskatoon, Sask., S7N 5A8Canada)

  • Kerr William

    (Department of Agricultural and Resource Economics, University of Saskatchewan, 51 Campus Drive, Saskatoon, Sask., S7N 5A8Canada)

  • Phillips Peter

    (Johnson-Shoyama School of Public Policy, University of Saskatchewan, 101 Diefenbaker Place, Saskatoon. Sask., S7N 5B8Canada)

Abstract

As with other facets of regulatory policy for genetically modified organisms, labeling is a contentious issue in international trade policy. Labeling can be a trade barrier. The existing multilateral system for labeling is based in the Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) agreements of the World Trade Organization (WTO) – and is focused on limiting the rent-seeking trade inhibiting aspects of labeling. An alternative view of labeling is based on the social policy of consumers’ right to know and takes no account of the trade costs associated with labeling. The labeling rules of the SPS and TBT are explained. These are contrasted with the trade effects of a labeling system based on consumers’ right to know that might be incorporated into a preferential trade agreement. The relative economic effects are explained and contrasted with those of the social policy of coexistence. The difficulties arising from some trading partners using the labeling rules of a preferential trade agreement while others use those of the WTO are outlined. The likelihood of alternative rules for labeling being included in the Transatlantic Trade and Investment Partnership (T-TIP), the Trans-Pacific Partnership (TPP) and the Comprehensive Economic and Trade Agreement (CETA) are examined.

Suggested Citation

  • Smyth Stuart & Kerr William & Phillips Peter, 2017. "Labeling Demands, Coexistence and the Challenges for Trade," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 15(1), pages 1-10, January.
    • Handle: RePEc:bpj:bjafio:v:15:y:2017:i:1:p:10:n:1
    DOI: 10.1515/jafio-2016-0015
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    References listed on IDEAS

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    1. Crina Viju & May T. Yeung & William A. Kerr, 2014. "Zero Tolerance for GM Flax and the Rules of Trade," The World Economy, Wiley Blackwell, vol. 37(1), pages 137-150, January.
    2. William A. Kerr & Jill E. Hobbs, 2002. "The North American–European Union Dispute Over Beef Produced Using Growth Hormones: A Major Test for the New International Trade Regime," The World Economy, Wiley Blackwell, vol. 25(2), pages 283-296, February.
    3. Kerr, William A., 2006. "International Harmonization and the Gains from Trade," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 7(2), pages 1-10.
    4. Kerr, William A., 2015. "Governance of International Trade in Genetically Modified Organisms: Is Future Global Food Security at Risk?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 16(2), pages 1-18.
    5. Kerr, William A., 2011. "The Preference for New Preferential Trade Agreements: Does It Lead to a Good Use of Scarce Resources?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 12(1), pages 1-11, January.
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    Cited by:

    1. Kelvin Balcombe & Dylan Bradley & Iain Fraser, 2020. "The Economic Analysis of Consumer Attitudes Towards Food Produced Using Prohibited Production Methods: Do Consumers Really Care?," Studies in Economics 2004, School of Economics, University of Kent.

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