Biosafety at the crossroads: An analysis of South Africa's marketing and trade policies for genetically modified products

"South Africa is the only country in Africa that has both adopted genetically modified (GM) crops and developed a functional biosafety system to manage any risks related to the use of GM products. But it is also one of the only countries that trade both GM and non-GM crops, despite being surrounded by countries banning the use of GM products. In this paper, we analyze the marketing and trade policies for GM products in South Africa that have been successful in the past and critically review recent reforms to these policies. By providing trade volume estimates of potentially GM products, we show that South Africa is effectively a significant exporter and importer of both GM and non-GM products. We then show that although its import approval system has been effective, recent reforms have allowed regulators to use biosafety regulations as an apparent nontariff barrier to trade. On the export side, South Africa has been able to adapt to each specific demand, but potential export risks have gradually entered the decisionmaking process through the inclusion of socioeconomic considerations. On the marketing side, we show that although non-GM maize segregation has been successful so far, it has generated some adjustment costs and could be improved. At the same time, by excluding all current GM products, the GM food labeling regulation in place has not been fully satisfactory and is bound to change; it could be heading toward a strict mandatory system, despite limited public demand. Therefore, there is a clear movement toward more costly and rigid trade and marketing regulations for GM products in South Africa, with local special-interest groups having an increasing influence on decisionmaking. Yet, the past 10 years have demonstrated that South Africa's success in taking advantage of biotechnologies under changing global conditions stems mainly from its adaptation capacity and the flexibility of its system. Based on the analysis presented in this paper, we provide six policy recommendations to improve rather than rigidify market and trade regulations—policies that would allow South Africa to better adapt to global changes, to manage risks rigorously but efficiently, and to take advantage of safe and potentially promising new GM technologies." from authors' abstractTrade regulations, Genetically modified crops, Marketing, trade policies, Genetically modified products, Biosafety, Genetic resources, Science and technology,

An analysis of trade related international regulations of genetically modified food and their effects on developing countries:

"This paper reviews current trade–related regulations of genetically modified (GM) food and discusses their effects on developing countries. There is a large heterogeneity in current import approval and marketing policies of GM food worldwide. At the international level, the harmonization efforts are led by the Codex Alimentarius Commission, the Cartagena Protocol on Biosafety and the World Trade Organization. While internationally harmonized guidelines for safety approval have been finalized, we show that there is no clear consensus on labeling regulations for GM food, and there is an increasing risk of conflicts among international agreements. We analyze the GM food regulations of two large rich importers, Japan and the European Union (EU) and discuss their differences and their potential impact on international trade. We also show that the effects of international and domestic trade related regulations critically depend on the type of traded products and their intended use: food and unprocessed products are subject to more stringent regulations than animal feed and processed products. Finally, we identify the main spillover effects of national and international regulations on developing countries' policy making, and suggest four policy arrangements on GM food to enable developing countries to satisfy production, consumption, international trade, and risk management objectives simultaneously while complying with their international obligations.Genetically modified food Developing countries, Biosafety, Trade regulation, Labeling, International trade, Tariff,

at the national level: the case of Kenya

This note summarizes a study on the implications of implementing strict information requirements for genetically modified (GM) commodities under Article 18.2(a) of the Cartagena Protocol on Biosafety in Kenya. The results show that enforcement of strict “*does contain*” requirements, compared with the default “*may contain*” option, would create additional costs and challenges in the difficult implementation of import regulations.Non-PRIFPRI1EPT

A conceptual framework

PRIFPRI4; GRP1; poor science and technology policiesEPT

Opportunities and constraints

Nanotechnology is research and development that involves measuring and manipulating matter at the atomic, molecular, and supramolecular levels at scales measured in approximately 1 to 100 nanometers (nm) in at least one dimension.”Materials at such small scales often exhibit different electrical, magnetic, optical, mechanical, and other physical properties from their bulk material counterparts, leading to the development of potentially revolutionary technologies in a variety of industries,including agriculture and food. By increasing productivity, reducing postharvest loss, improving product quality, increasing the competitiveness of agricultural producers, and improving market access, advances in nanotechnology may present new opportunities to improve the livelihoods of the poor. But nanotechnology may also create new risks.Investments in agriculture and food nanotechnologies carry increasing weight because their potential benefits range from improved food quality and safety to reduced agricultural inputs and improved processing and nutrition. While most investment is made primarily in developed countries, research advancements provide glimpses of potential applications in agricultural, food, and water safety that could have significant impacts on rural populations in developing countries.Despite their promise, agricultural and food nanotechnologies, especially those that could reduce poverty or increase food and nutrition security, will likely face many challenges in each step of development—from investment in research and development (R&D) to adoption and use—before being commercialized and used by the rural poor. Many of these obstacles appear in the development of any new technology, but there are also issues specific to nanotechnology: intellectual property rights (IPR), the management of safety and environmental risks in the presence of wide uncertainties, and possible market displacement effects induced by these technologies, among other concerns. This brief presents a review of the potential opportunities and challenges of using nanotech applications for agriculture, food, and water in developing countries.PRIFPRI1; GRP1EPTD; MTI

The price and trade effects of introducing strict information requirements under the biosafety protocol article 18.2(a) in the case of maize

This note summarizes a study on the effects of implementing strict information requirements under Article 18.2(a) of the Cartagena Protocol on Biosafety, examining the case of maize. The results suggest that such measures would increase maize prices and distort international trade, with significant economic losses in Protocol member countries.Non-PRIFPRI1EPT

a conceptual framework

"Modern crop production is based on only a few plant species. Particularly in marginal environments of developing agricultural economies, many less well-known agricultural or non-timber forest species, continue to be grown, managed or collected, thus contributing to the livelihood of the poor and to agricultural biodiversity. Some of these species, called underutilized plant species, are characterized by the fact that they are locally in developing countries but globally rare, that scientific information and knowledge about them is scant, and that their current use is limited relative to their economic potential. In this paper, we first identify the economic factors that cause these plants to be ‘underutilized’. Based on this analysis, we propose a classification of underutilized plant species based on the relationship of the observed to the potential economic value of the species, and the presence or absence of and constraints to output markets. Then, focusing on a subset of underutilized plant species with market potential, we identify three necessary conditions for the successful commercialization of underutilized plant species for the benefit of the poor: demand expansion, increased efficiency of supply and marketing channels, and a supply control mechanism. This conceptual framework is intended to provide a basis for an empirical assessment of marketing solutions for underutilized plant species among the rural poor in developing economies."" -- Authors' abstractNon-PRIFPRI1; Theme 10; Subtheme 10.1; GRP1; Theme 3; Subtheme 3.2; GRP39; Pro-poor science and technology policies; Managing natural resources; Science and Technology; PBSEPT

Biosafety, markets and politics

PRIFPRI4; GRP1EPT