Spring 2015 Logan County
Farm Outlook Magazine

How GMO regulations affect exports
By Angela Reiners

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[March 30, 2015]  When it comes to exporting GMOs, the regulations and standards of other countries must be taken into consideration.

Sources show that a GMO must be approved in order “to permit its entrance in the domestic market, both for cultivation and/or for consumption.” If it is not approved, the product cannot be presented to the country.

As noted by Guillaume P. Gručre who works with the International Food Policy Research Institute, “Approval requirements vary widely across countries, but there are two main approaches. One is the EU (European Union) approach based on the ‘precautionary principle’, which states that any product produced with, or derived from, transgenic crops is subject to specific regulations and the consumer’s ‘right to know.’ The second is the US attitude of ‘substantial equivalence,’ which exempts essentially equivalent products from any specific requirements.”
 


According to a recent article by Sonia Go´mez-Galera et al., “EU regulations forbid member states from preventing the import and marketing of GMO-derived food products from overseas, which means effectively that the EU is driving researchers overseas so that products can be developed and commercialized outside Europe and then imported back into the EU at a much-inflated cost. “

Though part of the EU, France has more restrictive rules concerning GMOs due to many anti-GMO organizations. No GMO crops are grown there, though they do import GMOs.

An update last spring from Foreign Law Specialist Nicolas Boring explained that, “On May 5, 2014, a judge from France’s highest court for administrative matters rejected a request from corn producers to strike down a government regulation prohibiting the sale, use, and growing of MON810 genetically modified corn. Furthermore, on that same date, the French Parliament adopted a law banning that same type of genetically modified corn.”


In addition to the EU, other major agri-food importers like Japan (but not South Korea) display a relative restrictive GMO regulation, while major exporters (e.g. Argentina, Brazil, Canada and Ukraine) have a “soft” regulation according to their comparative advantage in the production of agricultural products. Finally, within the EU countries there is a certain degree of variance. Countries such as Austria and Italy “have imposed a de facto ban on the cultivation of GM maize approved by the European Commission. Moreover, the majority of Italian and Austrian regions are members of the European GMO-free Regions Network.”


In her article “Are GMOs doomed on the global market?” Carolanne Wright noted that some countries have taken a stance against GM imports. For example, in November 2013, China banned imports of U.S. corn after “genetically modified Bt protein (MIR162)” was identified--costing more than “$4 billion in revenue losses for U.S. corn and soybean industries.” Recent reports from Reuters show that restrictions are beginning to ease. Russia has taken the strongest stance against GMOs because of “legislation that would make the illegal introduction of genetically modified crops into the country a crime that is treated in a similar manner as terrorism.”

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The regulations in developing countries are less clear. As Vigani and Olper state, “Many developing countries do not have clearly defined GMO regulations. . . [and the ones that do] are often incomplete or requirements are not specified. For example, in Mexico and Vietnam the labeling of GMO ingredients is compulsory, but no labeling threshold is defined and not well specified exemptions are permitted.” Countries that do not have a “labeling threshold” could have a “factual ban on GMO imports . . . [and] react with an overall rejection of products containing GMOs,” but it is not proven. On the other side are “regulations that specify a minimum threshold content permit [and] GMO imports, even though the threshold is very restrictive.” What results is often an overestimation of GMO restrictions “in those countries where regulations are well documented and comprehensive.”

Despite its restrictions, the European Union is very dependent on imports of Genetically Engineered feed. The Directorate-General for Agriculture and Rural Development has noted that “the EU imports a lot of GE feed” in order to maintain their animal agriculture since the EU cannot “produce most of the oilseed meal and other protein-rich feedstuffs required to feed its livestock... In addition, “98% of EU soybean meal is imported from Brazil, the USA, and Argentina [and] 80% of this imported feed is GE. With these imports, the EU “would only be able to replace 10-20% of imports by high protein substitutes, resulting in a substantial reduction in animal protein production, exports and consumption, and a very significant increase in animal protein imports and cost in the EU.”

In summary, lobbyists and lawmakers in various nations have been able to enact legislation in opposition to GMOs, but they are far less effective in actually keeping GMOs out of the marketplace. It remains to be seen whether the basic principles of supply and demand will triumph over the resistance to biotechnology in global agriculture.

References:

Directorate-General for Agriculture and Rural Development. 2007. Economic impact of unapproved GMOs on EU feed imports and livestock production. http://ec.europa.eu /agriculture/envir/gmo/economic_impact GMOs_en.pdf

Field trials and tribulations—making sense of the regulations for experimental field trials of transgenic crops in Europe Sonia Go´ mez-Galera, Richard M. Twyman , Penelope A.C. Sparrow , Bart Van Droogenbroeck , Rene´ Custers , Teresa Capell, and Paul Christou

Vigani, Mauro; Olper, Alessandro (2012) : GMO Standards, Endogenous Policy and the Market for Information, LICOS Discussion Paper, No. 306

Nicholas Boring. Restrictions on Genetically Modified Organism: France.

 

Read all the articles in our new
Spring 2015 Logan County
Farm Outlook magazine

Title
CLICK ON TITLES TO GO TO PAGES
Page
2014 Year in Review 4
The year producers won the battle 7
How GMO regulations affect exports 9
GMOs and Biotechnology: Facts and Fiction 13
What are the impacts of last year? 16
Using corn storage as a hedge 20
Is fall tillage really necessary? 23
The cost of corn-on-corn 30
CASH RENT:  The Great Equalizer 34
Lowering your costs may increase your risks 37
Will lower fuels costs make farming profitable in 2015? 39
Mr. Allen and the Mount Pulaski FFA, a natural fit 40
Ag Scholarships 44
2014 County crop yields 52

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