Reforming the WTO to Defuse Potential Trade Conflicts in Genetically Modified Goods

• Published in: World economy Vol. 24; no. 3; pp. 379 - 398
• Main Authors: Perdikis, Nicholas, Shelburne, William A. Kerr, Hobbs, Jill E.
• Format: Journal Article
• Language: English
• Published: Oxford, UK and Boston, USA Blackwell Publishers Ltd 01.03.2001; Blackwell Publishing Ltd
• Subjects: Consumer Preferences; Consumers; Decision making; European Union; Food; Genetic engineering; Genetically Modified Goods; International Economic Organizations; International law; International trade; Preferences; Reform; Reforms; Regulation; Studies; Technical efficiency; the EU; the US; the World Trade Organisation; Trade; Trade agreements; Trade barriers; Trade Conflict; World economy; World Trade Organization
• ISSN: 0378-5920; 1467-9701
• DOI: 10.1111/1467-9701.00361

Arguably genetic modification is one of the most important technological change seen to date. Its effects on both human health and the environment are both profound and controversial. In particular consumers, mainly in the EU, have concerns regarding the long term effects of consuming genetically modified foods on their health. They are also concerned regarding the effect that genetically modified organisms will have on bio‐diversity and choice in the long run. Differing regulatory regimes towards genetically modified goods in the US and EU could lead to damaging trade conflicts. Current agreements covering trade in foods such as the SPS and TBT allow a way of diffusing conflicts. The primary aim of these agreements is, however, to prevent governments from protecting domestic producers by applying capricious barriers to foreign competition. This paper sets out to show that rather than modifying these two agreements it would be better to deal with new issues surrounding consumer preferences explicitly by negotiating a new international agreement.