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6.3.05 [ Regulatory Conflict in GM Food Market--Sheldon ] 2 comments

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Sheldon, Ian M. "Regulation of biotechnology:will we ever 'freely' trade GMOs?" European Review of Agricultural Economics Vol 29(1) (2002) pp. 155-176
Blogger Mike, at 3:01 PM 


Disparate regulations will divide ntations into two groups: "[...]those who adopt a similar standard and those who do not". Monika Tothova and James F. Oehmke argue the case of 'trade clubs' in the worldwide GM market.
Blogger Mike, at 10:58 PM 


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Conflicting views towards the extent to which GM food should be regulated has been a source of contention on the international agriculture market. Often criticised, the US operates on "[...]the principle of minimal oversight of food products that are generally regarded as safe (GRAS)."

The FDA's 1992 position was very clear: [...] crop development through genetic modification is simply an extension to the molecular level of traditional plant breeding methods. Second, the FDA established the principle that existing GM foods do not differ in any substantial way from those developed through traditional plant breeding methods

The FDA did assert, though, that they would require the labeling of GM foods if the "[...]food contains an allergen that would not normally be present in that food product" (157).

The EU, however, developed a firmer stance, spurred by their tardy arrival to GM regulation. Though their approval process has undergone some evolution, their position is as clear as the Americans':

  1. the precautionary principle should be applied to ensure appropriate measures are taken to avoid any adverse effects on human health and the environment from the release and marketing of GMOS;
  2. an environmental risk assessment has to be carried out before any notification is made to the relevant EU authority of intent to release a GMO;
  3. the use of antibiotic resistance marker genes is to be phased out by the end of 2004 in the case of commercial release of GMOs, and by the end of 2008 for research purposes;
  4. assessment of risk should be conducted on a case by case basis;
  5. Member States are required to take measures to ensure traceability at all stages of placing a GMO on the market.
(159)

Worlwide, countries tend to align themselves towards the American or the European approach by region (for instance, Canada has adopted the American approach). This is a point of contention in the WTO as the trade of agricultural products tends to be between nations in the same grouping (165: this point needs more research and is merely implied by this article--would be nice to say this conclusively); "Exporting countries will probably argue that importing countries' regulations are too restrictive, given existing scientific knowledge of the safety of current GM crops [...]" (173). Sheldon considers mandatory labeling as solution to this asymmetric information problem.

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