EU border rejections of unauthorized GM food and the trade deflection effects

We identify that consignments rejected by the European Union, due to the presence of unauthorized Genetically Modified food, have been diverted to third countries, creating trade deflections. We rely on a gravity model to examine the effects on food products. Our results show that the rejection of s...

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Bibliographic Details
Published inRivista di economia agraria Vol. 75; no. 2; p. 65
Main Authors Cüellö, Dannyra Tatiana Mendöza, Faria, Rosane Nunes De, Figueiredo, Adelson Ma, Burnquist, Heloisa Lee
Format Journal Article
LanguageEnglish
Published Florence Firenze University Press 2020
Firenze University Press Università degli Studi di Firenze
Subjects
Borders
Food
Food industry
Genetic engineering
Genetically engineered foods
Genetically modified crops
Gravity
International economic relations
International trade
Shipments data
Trade flows
Unauthorized
China
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Summary:We identify that consignments rejected by the European Union, due to the presence of unauthorized Genetically Modified food, have been diverted to third countries, creating trade deflections. We rely on a gravity model to examine the effects on food products. Our results show that the rejection of shipments by the EU has a side-effect on the global trade flows in the form of trade deflection, which can overcome losses related to A.A. The deflection occurs largely for products whose major importers have already approved most of the GM events rejected by the EU and with very concentrated export market. We also found that exporting countries with higher border rejections tend to increase their trade deflections, providing a deeper understanding of the effects of A.A on global trade flows. Keywords: border rejections, GM food, trade deflection, European Union, third market. JEL codes: Q17, Q18.
ISSN:0035-6190
DOI:10.13128/rea-12070