Using Biotechnology to Lower Production Costs of Biofuels in Canada: Will it Hinder the Growth of an Export Industry?

Bio-based fuels represent one of the most viable alternatives to petroleum-based fuel to meet transportation needs in the 21st century. The biofuel industry is in its infancy in Canada but shows considerable growth opportunity. The international interest in biofuels due to environmental and energy security concerns could result in a large and profitable export market for Canadian biofuel producers. Many industry participants are beginning to use biotechnology in their production processes to lower costs. Such use means they will be forced to contend with the unclear international regulation of trade in the products of biotechnology. Substantially different rules have been created by the Cartagena Protocol on Biosafety to the Convention on Biological Diversity, which governs only trade in biotechnology products, and the World Trade Organization, which governs trade in all goods. The inconsistencies of the regulatory situation create significant risks for biofuel producers, as their products may be blocked from important export markets.Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies,

A Trade Regime for Sub-National Exports Under the Agreement on the Application of Sanitary and Phytosanitary Measures

Regulations relating to disease management have traditionally been an important component of the overall environment in which international trade in agriculture products occurs. The World Trade Organization (WTO) Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) allows members to restrict or prohibit imports from a country when imported products present a risk to human, animal or plant health or life. As the Bovine Spongiform Encephalopathy (BSE, also commonly called Mad Cow disease in the media) outbreak in Canada showed, the disease status of a country is a major competitive advantage and losing disease-free status can impose significant costs on an industry. The risks associated with SPS-based border closures were not well anticipated by the Canadian industry and government, and little was done in preparation for the potential change in the trading environment and the ensuing losses. This is a mistake many stakeholders in the industry plan to avoid making again.International Relations/Trade,

A Trade Regime for Sub-National Exports Under the Agreement on the Application of Sanitary and Phytosanitary Measures

Regulations relating to disease management have traditionally been an important component of the overall environment in which international trade in agriculture products occurs. The World Trade Organization (WTO) Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) allows members to restrict or prohibit imports from a country when imported products present a risk to human, animal or plant health or life. As the Bovine Spongiform Encephalopathy (BSE, also commonly called Mad Cow disease in the media) outbreak in Canada showed, the disease status of a country is a major competitive advantage and losing disease-free status can impose significant costs on an industry. The risks associated with SPS-based border closures were not well anticipated by the Canadian industry and government, and little was done in preparation for the potential change in the trading environment and the ensuing losses. This is a mistake many stakeholders in the industry plan to avoid making again.International Relations/Trade,

Using Biotechnology to Lower Production Costs of Biofuels in Canada: Will it Hinder the Growth of an Export Industry?

Bio-based fuels represent one of the most viable alternatives to petroleum-based fuel to meet transportation needs in the 21st century. The biofuel industry is in its infancy in Canada but shows considerable growth opportunity. The international interest in biofuels due to environmental and energy security concerns could result in a large and profitable export market for Canadian biofuel producers. Many industry participants are beginning to use biotechnology in their production processes to lower costs. Such use means they will be forced to contend with the unclear international regulation of trade in the products of biotechnology. Substantially different rules have been created by the Cartagena Protocol on Biosafety to the Convention on Biological Diversity, which governs only trade in biotechnology products, and the World Trade Organization, which governs trade in all goods. The inconsistencies of the regulatory situation create significant risks for biofuel producers, as their products may be blocked from important export markets

Trading Biofuels - Will International Trade Law Be a Constraint?

Biofuels are increasingly being looked at to spur economic activity in the agricultural sector and to contribute to broader rural development goals while at the same time assisting in the reduction of harmful emissions created by burning petroleum-based fuels. Hence, biofuels appear to be a “win-win” technology that will contribute to achieving a number of important policy goals. As a result, governments around the world have become actively involved in the promotion of this new industry. The industry has expanded rapidly in the last few years but is still in a developmental stage. As the industry matures, biofuel producers will begin to see opportunities in international markets. Canada and the United States have considerable export potential due to their large supply of biomass and technological capacity to convert the biomass into biofuel. This article examines the potential trade issues that could arise when biofuels enter the international market. The issues examined include subsidization, the trade effects of using biotechnology in producing biofuels, market access and tariff classification, and potential technical barriers to trade related to product standards

CHINA'S REGULATION OF BIOTECHNOLOGY - DOES IT CONFORM TO THE WTO?

The People's Republic of China has been working for over two decades to develop a domestic biotechnology industry. Even though China is a developing country, it is set to become a significant international player in the field of biotechnology. China's accession to the World Trade Organization in December of 2001 means that China's trade and regulatory regime should now reflect its WTO commitments. This paper outlines the development of the Chinese biotechnology industry and how it may evolve in the future. It assesses China's current approach to trade and regulation of biotechnology in relation to GATT rules on trade in goods and the TRIPS commitments pertaining to the protection of intellectual property. The conclusion is that China's trade and intellectual property regimes currently deviate considerably from WTO norms and number of trade disputes are likely to arise in the near future

THE BSE CRISIS IN CANADA: A TRADE PERSPECTIVE ON SANITARY BARRIERS

The discovery of BSE in Canada's cattle herd on May 20, 2003 has led to lost market access for Canadian cattle and beef in many countries. The Canadian cattle industry is extremely export dependent, and the loss of almost all of major export markets has had a devastating impact. Over a year later, many of these markets have still not removed their restrictions on Canadian cattle and beef. The severity of the restrictions and their long-term continuance are far in excess of what is recommended by the international organisations that set the standards for trade in animals and animal products. This has led many in the Canadian industry to wonder why these sanitary barriers are being misused and abused. The illegitimate and legitimate reasons for creating a sanitary barrier are examined, along with the potential for abuse of trade barriers which may have been imposed for legitimate reasons. Some suggestions for what the Canadian industry should have done and what they should do now are also offered

THE BSE CRISIS IN CANADA: A TRADE PERSPECTIVE ON SANITARY BARRIERS

The discovery of BSE in Canada's cattle herd on May 20, 2003 has led to lost market access for Canadian cattle and beef in many countries. The Canadian cattle industry is extremely export dependent, and the loss of almost all of major export markets has had a devastating impact. Over a year later, many of these markets have still not removed their restrictions on Canadian cattle and beef. The severity of the restrictions and their long-term continuance are far in excess of what is recommended by the international organisations that set the standards for trade in animals and animal products. This has led many in the Canadian industry to wonder why these sanitary barriers are being misused and abused. The illegitimate and legitimate reasons for creating a sanitary barrier are examined, along with the potential for abuse of trade barriers which may have been imposed for legitimate reasons. Some suggestions for what the Canadian industry should have done and what they should do now are also offered.Food Consumption/Nutrition/Food Safety, International Relations/Trade,