Global Welfare and Trade-Related Regulations of GM Food: Biosafety, Markets, and Politics

This paper presents an overview of current and upcoming trade related regulations of genetically modified (GM) food, and analyzes their effects on trade, consumers, and producers. Using a three-country analytical model of welfare and political interests, the study assesses the economic effects and motivation behind the adoption of import approval regulations, information requirements for GM commodity shipments, and GM food marketing policies. The results of the analysis show that in a non-GM producing country, trade-related regulations will benefit producers, but not necessarily consumers. Thus, while consumers may play a role in supporting import approval regulations, producers’ support is likely to be instrumental to the adoption of all other types of regulations. Outside pressure groups will play the role of swing voters in cases where consumers and producers do not agree, such as on mandatory labeling of GM food, information requirements, or potentially to support GM-free private standards.