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United Nations The 11th Annual Conference • January 20– 22, 2012
Background GuideWorld Trade Organization
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The 11th Annual Conference • January 20– 22, 2012
Dear Delegates,
My name is Livvy Bedord and I will b e serving as your Director in the World rade
Organization during the 2012 VMUN conerence. I am currently a Senior at
Inglemoor High School in Kenmore, Washington. I have been involved in Model
United Nations since I started high school and am currently the President o the
MUN club at my school. I strive to maintain an international ocus that looks
beyond the American ramework I’ve grown up in and I have had nothing but
wonderul experiences in MUN. I hope that I can help create a positive experience
or everyone in the WO and that you’ll come away rom this conerence with a
better understanding o the country you represent and the issues we’ll be ocusing
on.
I’m very excited to see where the discussion and debate will lead as we explore the
issues I’ve selected. I had a wonderul time researching and writing this background
guide and I hope you will all fnd these issues as interesting as I did. Both topics
address very serious questions about how our increasingly globalized world is
going to solve the problems that arise as we become more connected. Te frst
topic, which addresses the negatives o ood aid, is important in understanding how
countries can help each other responsibly and maintain development goals in the
midst o crisis. Te second topic addresses a undamental divide between trade
objectives and human health. In determining a solution delegates must determinethe appropriate boundary between protecting trade and protecting consumers
rom potential dangers.
I hope that you’ll all keep this question in mind while exploring both topics and
preparing your position papers. I look orward to hearing the ideas that will
inevitably come out o your hard work and I can’t wait to meet all o you. I you
have any questions regarding the conerence eel ree to contact me anytime.
Best wishes,
Livvy Bedord
Director, World rade Organization
Hafz Dhanani
Secretary-General
Yeoman LiangDirector-General
Alex LinConerence Director
Zach HauserChie o Sta &
Under-Secretary-GeneralCommittees
Amelia Casey Under-Secretary-General
Committees
Stuart WarrenUnder-Secretary-General
Delegate Aairs
David ChoiUnder-Secretary-General
Inormation echnology
Johnny BrynelsenUnder-Secretary-General
Marketing
Jennier YoonUnder-Secretary-General
Marketing
Azzra MangaljiUnder-Secretary-General
Sponsorship
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Topic B: Genetically Modifed Organisms and Trade
Introduction
Since the introduction o genetically modifed organisms (GMOs) in the 1990s, controversy has erupted
regarding the saety o oods containing genetically modifed (GM) substances. Biotechnology
corporations and supporters have long heralded GM oods as a panacea, equipped to solve the global
hunger crisis. In contrast, consumers, scientists, and governments around the world have expressed
signifcant concern over the risks to human health and the environment that GM oods may pose. As a
result, several countries have enacted legislation imposing strict regulations on GM oods. Tese
regulations have slowed trade rom GMO-producing countries and elicited strong criticisms rom GMO-
exporting countries. As the presence o GMOs in ood crops continues to increase, it is vital or the WO
to orm a set o international guidelines to determine acceptable regulations or the trade o GMOs that
will allow governments to protect human health and the environment rom potential risks but also
prevent unair restriction o international trade.
Timeline
1979 — Te echnical Barriers to rade (B) Agreement is signed at the end o the okyo Round o
negotiations. Te agreement was also updated during the Uruguay Round and is still an integral part o the
WO regulatory ramework.1
1987 — European Union decides that biotechnology is an area that requires regulation at the community
level as well as the international level. 2
1992 — GM oods are introduced to the market in the United States. Labelling is not required and most
consumers remain unaware o the presence o GM products in their ood.3
January 1, 1995 — Te WO Agreement on Sanitary and Phytosanitary Measures came into eect.4
1995 — In a study by the USDA o Americans living in New Jersey, only 60% o people said they would
consider buying resh GM vegetables i they were labelled as such.5
1996 — Roundup Ready Soybeans are introduced by Monsanto, an agriculture and biotech corporation.6
1997 — More than 60% o Europeans surveyed in a Eurobarometer poll expressed concerns regarding the
saety o GMOs in ood products.7
January 1997 — European Union adopts regulation 285/97 on novel oods, imposing heavy regulations on
the presence o GMOs in oods.8
1 http://www.wto.org/english/tratop_e/tbt_e/tbt_ino_e.htm2 http://www.ppl.nl/bibliographies/wto/fles/5177a.pd 3 http://www.commercialdiplomacy.org/ma_projects/ma_sandblom1.htm4 http://www.wto.org/english/tratop_e/sps_e/spsund_e.htm5 http://ec.europa.eu/agriculture/publi/gmo/gmo.pd 6 http://www.monsanto.com/whoweare/pages/monsanto-history.aspx7 http://ec.europa.eu/agriculture/publi/gmo/gmo.pd
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would otherwise be okay or consumption. Vegetarians are also troubled by the implications o animal
genes being used in ruits or vegetables, a process that would cause some vegetarians to reject the resultant
GM produce. Also, changing the genetic structure o a plant or animal may cause changes in nutritional
content, toxicity, allergenicity, and/or antibiotic resistance, all o which have the potential to cause untold
health problems or consumers.
GM oods have become a matter o trade dispute, i.e. a matter under the WO’s purvey, because o the
radically dierent approaches to the regulation o GM products throughout the world. Production o
GMOs is concentrated in fve countries: Argentina, Brazil, Canada, China, and the United States.17 Tese
countries account or roughly 90% o GM crops worldwide, placing the control o biotech in the hands o
a small number o powerul corporations. As a result, small growers may be edged out as only large
corporations capable o producing GMOs are able to compete in an increasingly GMO-dependent
market. As a result, the agriculture market risks becoming more centralized i GM oods continue to
increase in popularity, as they have in the past two decades. In a GMO-dominated uture, the costs o
intellectual property rights associated with the research and development necessary to create viable
GMOs has the potential to edge out small growers, especially in the developing world, who will no longerhave the capital to sustain their arms.18 Intellectual property rights have already proven troublesome or
armers growing Roundup Ready Soybeans, a variety manuactured or herbicide resistance. Te
company, which produces Roundup Ready Soybeans, charges US armers a technology ee or its seeds,
raising the cost considerably. Adding to the controversy, these ees are not leveraged equally amongst
dierent countries. In Argentina, Roundup Ready seeds are sold without the technology ee, leading to
high quantities o cheaper soybeans in Argentina sold at prices that US armers have a dicult time
competing with on the international market.19
rade Disputes
Te reactions to GMOs in ood have been strong and diverse. At one extreme, the European Union
requires mandatory labelling o all oods containing quantities o GMOs above a 1% tolerance level. Atthe other, the United States and Canada require labelling only in cases in which the nutritional
composition or allergenicity o the ood has been altered due to genetic engineering; otherwise, labelling
is voluntary.20 Te EU’s strong anti-GMO policies have been criticized as being harmul to trade. Te
estimated loss to US manuacturers as a result o these regulations is approximately one billion dol lars.21
Crops that are bred to produce the pesticide Bt have been approved or growth in the US; however, these
crops have proven highly controversial and have been rejected by the EU due to concerns regarding
human health. Due to the EU’s rejection o Bt products, several US grain merchandisers reused to buy Bt
corn products rom growers and required certifcations stating that no GM seeds had been used. In turn,
biotech agriculture frms were orced to promise armers that markets would be available or GM crops in
order to secure buyers.22 Te impacts o EU regulations are especially impactul or armers outside o theEU because most EU producers are already GMO-ree and thereore immune to increased regulation. EU
17 http://www.google.com/books?id=rmAr4_SzQv8C18 http://www.unctad.org/en/docs/poditctncd1.en.pd 19 http://nationalaglawcenter.org/assets/bibarticles/hamilton_shaping.pd 20 http://ageconsearch.umn.edu/bitstream/16317/1/tm020106.pd 21 http://www.unctad.org/en/docs/poditctncd1.en.pd 22 http://nationalaglawcenter.org/assets/bibarticles/hamilton_shaping.pd
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rejection o GMOs has also been linked to occurrences o surplus dumping in the orm o ood aid. For
example, in 2002 a severe amine in Arica gave the US an opportunity to dump GM ood aid on starving
Arican nations. However, many o these nations reused the shipments o GM ood aid, citing concerns
over human health or the implications or uture agricultural trade with the EU. Te US responded with
heavy criticisms o EU policies, claiming that the EU’s rejection o GM oods had led thousands o people
to starve needlessly. Critics o the US responded by insisting that US reusal to compromise on thecomposition o its ood aid was indicative o a desire to open markets to GM oods rather than provide
humanitarian aid. Te dispute over the trade o GM products continues to cause great tension between
GM supporters and anti-GM countries, particularly the EU and US.23
Te EU has adopted the “precautionary principle” in its approach to the regulation o GM crops. Rather
than waiting or conclusive evidence o health risks while allowing GM oods to enter the market, the EU
has implemented strict regulations or the approval and monitoring o all GM ood products. In contrast,
GM-riendly countries have opted to allow GM products to enter the market with very little regulation
and almost no eorts to engender consumer awareness. As a result, the presence o GMOs in the average
consumer’s diet has increased rapidly in the US, a act largely unknown to the public.
Te dierence in policies can be traced to an underlying dierence o opinion in risk assessment and
management. Countries like the EU base their risk assessments on the process rather than the product;
countries like the US do the opposite. In short, process-based assessments consider the method through
which the product was manuactured in determining whether or not two products are alike. wo diering
processes create two diering products, regardless o the quantifable similarity o the product. In
product-based assessments the concept o “substantive equivalence” is used to determine dierences in
products. As a result, only the end product is considered and regulations are only deemed necessary in
cases in which the end product diers signifcantly rom the non-GM orm. Te process o genetic
engineering is not considered to be inherently dierent rom traditional plant breeding techniques and assuch is not subject to extra regulation.24 Tis undamental dierence highlights the main controversies
associated with the regulating GM oods. In order to develop a regulatory ramework, the WO must
decide which regulatory approach to take regarding GM oods or develop a blend o the two.
On May 13, 2003, the United States, Argentina, Canada, and Egypt requested ormal consultations on the
EU’s moratorium on approvals o new GMOs. Te ban, which had been put in place in 1998, was viewed
as unnecessarily restrictive to trade.25 Tough the EU’s moratorium was ended in January, when a new set
o regulations replaced it, the request has not been withdrawn due to the strictness o the EU’s remaining
policies. Te WO panel in charge o the case released its ocial report on September 29, 2006, ruling in
avour o the US and its co-complainants. Te EU’s actions regarding the regulation o GMOs were ound
to be inconsistent with its obligations under the SPS Agreement. Te EU and US did come to a rough
agreement in regards to the WO’s judgment, however, the EU has retained strong precautionary
23 http://users.humboldt.edu/nzerbe/research/zerbe_eeding.pd 24 https://www.cbd.int/doc/articles/2003/A-00480.pd 25 Ibid .
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measures to regulate and monitor GMOs and international standards or the treatment o GMOs are still
needed to prevent uture GMO-related trade disputes.26
Te Controversies o Labelling and racing GMOs
Te labelling o GM oods is a highly controversial aspect o the GMO debate. In some countries,
labelling is mandatory to a 1% tolerance threshold or accidental GM contamination. In others, labelling
is required only in cases in which genetic engineering causes changes in the fnal product. Many
supporters o labelling GMOs cite the consumer’s “right to know” as the basis or imposing universal
labelling requirements on GM oods. Many consumers are uncomortable with the presence o GMOs in
their ood and wish to avoid them or religious, ethical or health concerns. Tese concerns are especially
relevant in cases in which the allergenicity o a product has been changed by genetic engineering.
Labelling would also serve as an easy way to monitor GM oods once they have reached the market and to
pull products that are later ound to pose great risk to the environment or human health. Labelling can all
under two categories: “positive” or “negative” labelling procedures. Under positive labelling procedures
products that contain GM products are labelled, in contrast, under negative labelling procedures only
products that are certifed GM ree are labelled. 27
One argument that has consistently been leveraged against eorts to label GM oods are the high costs and
diculties o separating GM and non-GM oods throughout the production process; costs which
producers, especially in pro-GM countries, cite as prohibitive to labelling. Despite these assertions,
studies have shown that the overall costs o segregating crops can be as little as 0.5% o the sale price. 28
Another limitation o labelling and tracing GM products is the need to routinely test crops to ensure that
GM tolerance levels and content are being respected. Currently two tests exist to determine the existence
o genetic engineering: one locates new DNA while the other locates proteins (produced by the new
DNA) that would not exist in the conventional product.29 Te DNA based testing is much more expensive
and requires more time than the protein based test which can be perormed at relatively low costs in as
little as fve minutes.30 Countries that do not perceive a dierence between GM and non-GM oods areespecial ly opposed to labelling GM products because producers ear that consumers will read GM labels
as an admission o risk, and will go to unnecessary lengths to avoid GM products without scientifc proo
o health risks.
Relevant Actions
echnical Barriers to rade (B) Agreement
Te B Agreement has two purposes. Te frst is to ensure that countries do not use domestic
regulations, product standards, or testing to create unnecessary obstacles to trade; the second is to ensure
that countries also have the right to limit trade in order to achieve legitimate policy goals such as the
protection o the environment or human health. 31 Te agreement creates a dierence between technical
26 http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds291_e.htm27 http://www.ppl.nl/bibliographies/wto/fles/695.pd 28 http://ec.europa.eu/agriculture/publi/gmo/gmo.pd 29 Ibid .30 Ibid .31 http://www.wto.org/english/tratop_e/tbt_e/tbt_e.htm
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barriers and standards. echnical barriers are binding laws that require compliance or trade to occur;
mandatory GMO label ling alls under this category. In contrast, standards are non-binding, can be
adopted voluntarily to help acilitate trade, and may be adopted by third parties. Te B agreement
provides procedures, regulations and standards or adopting technical barriers and standards regarding
international trade and also provides processes or ensuring that products meet the standards proposed in
these agreements. Tose who actively support universal GMO labelling argue that GMO labelling shouldall under this agreement and meet the standards o this agreement, and would like to see GMOs argued
under this agreement rather than the SPS agreement.32
Agreement on Sanitary and Phytosanitary Measures (SPS Agreement)
Te SPS agreement determines how governments can impose ood saety and environmental regulations
without adopting measures that unairly protect domestic products against oreign competition.33
Countries are allowed to set their own standards, however, these standards must be based in scientifc act
and can only be extended as ar as necessary to protect animal and plant lie. Members are obligated to
achieve three objectives when developing health and saety regulations. Tey must a) ensure that any
standards that exceed international standards are based on scientifc risk assessment and sucient data, b)
choose the method o regulation that is least restrictive to trade while meeting health objectives, and c)
accept the standards o other countries when it can be shown that the same health objectives are being met
with dierent regulations.34 Te judgment against the EU was made using this agreement on the basis that
the EU’s policies were not based on conclusive scientifc evidence and as such were too trade restrictive.35
Under the SPS agreement, the precautionary principle can be applied or only a l imited amount o time
and only in cases in which the country can prove it is actively seeking scientifc data to back its claims o
risk.36
Cartagena Biosaety Protocol and Codex Alimentarius Commission (CODEX)
Negotiations regarding the Biosaety Protocol were fnally completed on January 29th, 2000. During
negotiations, the regulations o GMOs (reerred to as LMOs in the protocol) were a critical source o debate. Te Protocol provides regulations or the transport o GMOs, including GMOs intended or use as
ood or eed products. Te Protocol also allows or countries to adopt the precautionary principle in their
policies regarding GMOs. However, the relationships between the Protocol and o ther international
agreements, including obligations to the WO, have not been clearly defned. One clause o the Protocol
asserts that countries are not released rom other international obligations by the agreement to the
protocol ; however, the next paragraph contains a clause that claims that the Protocol is not meant to be
subordinated to other international agreements. As a result it is not known how the Biosaety Protocol can
or will be used to justiy trade restrictive actions meant to mitigate the risks o GMOs. Also, there is no
clear orum or international disputes that all under the mandate o the Biosaety Protocol and the WO.37 Te CODEX represents a joint FAO/WHO eort to compile the standards, codes, guidelines and
recommendations or regulating oods. Te CODEX contains guidelines or monitoring the risks o GM
32 http://www.ppl.nl/bibliographies/wto/fles/695.pd 33 http://www.wto.org/english/tratop_e/sps_e/sps_e.htm34 http://www.ppl.nl/bibliographies/wto/fles/695.pd 35 http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds291_e.htm36 http://www.wto.org/english/tratop_e/sps_e/sps_agreement_cbt_e/c8s1p1_e.htm37 http://www.iisd.org/pd/biosaety.pd
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oods. Tough the terms o the CODEX are not binding, the CODEX is reerenced in the SPS agreement
and as a result may be reerenced in trade disputes.38
Bloc Positions
Tere is great variability between the types o regulations that each country adheres to. International
standards would greatly simpliy the matter—especially or developing countries, which are oen le inthe middle, unsure o how to balance their needs with the two regulatory extremes in the developed
world. Te table below summarizes the types o regulations used and the countries that adhere to those
types o regulations.39
Te European Union
Te EU has imposed some o the strictest policies regarding the authorization and monitoring o GM
oods. All new GM oods must undergo a lengthy three-step authorization process. First, an
application or admission as a GMO product must be submitted at the national level. In the second
step the application is published and sent to the European Commission and other member states. Te
commission and member states are brieed or a three-month period; the EFSA must provide a
statement within six months. Favourable rulings by the EFSA are accompanied by regulatory
recommendations rom the GMO panel. A decision is prepared by the Commission within three
38 http://www.who.int/oodsaety/publications/biotech/20questions/en/39 http://www.google.com/books?id=rmAr4_SzQv8C
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months; the decisions are le open to public comments or thirty days, which are then evaluated or
relevance.40
North America
Te United States, Canada, and other countries in the Americas have adopted a rather relaxed
regulatory approach to GM oods. Te US, or example, has allowed GM oods to enter the market
with very little regulation or labell ing. Most consumers are still unaware o the presence o GMOs in
their diet. However, as awareness o GMOs has grown so have calls or labelling and regulations o
GMOs. For example, b etween 1995 and 1997 the percentage o Americans comortable with GMOs
dropped rom 60% to 42%. Also, 81% o Americans and almost 94% o Canadians have expressed a
desire or labelling o GM products. However, their governments have resisted eorts to make GM
labelling mandatory in response to the concerns o agricultural producers who have criticized
mandatory labelling and crop segregation, which are viewed as costly and unnecessary.41 Te
reluctance to adopt stricter regulations is also based on the view that GM and non-GM crops are “like”
products despite the genetic dierences and should be treated as such.42
AsiaTe reactions to GM oods have varied greatly between Asian countries. However, most have adopted
relatively strict policies regarding the labelling and distribution o GM oods. Some Asian countries,
such as the Philippines, have begun producing GM corn. Others, like Japan have adopted strict
policies like those o the EU and Japanese companies have avoided GM products due to a ear o
public backlash against the use o GMOs.43 China is one o the leading producers o GM products and
has been at the oreront o the biotech industry; however, the Chinese government still maintains
strict regulations regarding GMOs. 44
Developing Countries
Te regulatory decisions o developing countries regarding GM products are oen linked to the
decisions o their international trading partners, especially those in the developed world. Agricultureremains a large source o revenue or the developing world and as such it is vital that developing
countries meet the saety requirements o their trading partners in order to acilitate trade. However,
pressures rom pro-GMO countries may exist to orce developing countries to adopt GM crops.
Regarding biotech developing countries stand to be the biggest benefciaries i biotech is used to
improve the nutritional content o ood, however, i biotech is used to strengthen patent laws armers
in the developing world may ace impossible obstacles to obtain seeds and continue with traditional
arming practices. As a result the agricultural sector in the developing world may all prey to an
agricultural market centralized around a handul o giant biotech frms.45
40 http://ec.europa.eu/ood/ood/biotechnology/harmonisation_o_controls_en.htm41 http://ec.europa.eu/agriculture/publi/gmo/gmo.pd 42 https://www.cbd.int/doc/articles/2003/A-00480.pd 43 <http://www.geneticallymodifedoods.co.uk/international-trade-gm-oods.html>.44 http://www.geneticallymodifedoods.co.uk/international-trade-gm-oods.html45 http://www.unctad.org/en/docs/itcdtab30_en.pd
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Possible Solutions
Any international standards or GMOs must take into account the incredible variability o current
national GMO policies. As a result compromise is necessary to ensure that all countries are allowed to
take actions to protect their citizens and biodiversity without unairly limiting trade. Following are
suggestions o measures that could be taken to achieve these goals:
• Measures could be taken to separate non-GM oods rom GM oods and to ensure that GM
oods are labeled at all levels so that the decision to consume GM oods lies at the consumer
level rather than the government level.
• Guidelines could be created or the research that must be done and the type/amount o data
that must be obtained in order to determine whether or not GM ood products are sae or
consumers. Specifc timelines could be adopted that will determine the amount o time given
or research aer which countries that ban GM oods must present conclusive data
confrming the dangers o GM oods or relax regulations on GM imports.
• Also, the dangers o accidental genetic mixing with native crops must be taken into account as
it relates to armers in the third world who have received GM seed rom pro-GM countries
but rely on trade with anti-GM countries.
• Also, the dangers o trade domination and increased dependence o developing nations on
developed nations must be taken into account and measures implemented to prevent such
occurrences.
• Te role o consumer rights should be evaluated to determine the extent to which consumers
have the right to know the biological origins o their ood and how such rights should be
recognized in regards to GM oods.
• It is necessary to determine whether or not the current regulations regarding the trade o
GMO oods alls under the protections o the SPS or B agreement regarding the right o
countries to restrict trade in order to achieve other policy goals.
• Te extent to which the precautionary principle can be used to limit and restrict trade must bedetermined.
• Te protections o SPS or B could be extended to protect restrictions based on
precautionary actions to protect human health. Also, the desires o consumers to protect
themselves rom suspected dangers regarding ood saety could also be taken into account
and placed under the protection o SPS or B guidelines.
• Also, the role o GM oods in ood aid packages against the wishes o recipient countries
should be taken into account and either banned or ethical reasons or supported due to the
lack o conclusive evidence against GM products.
Discussion Questions1. Do consumers have a right to know the process through which their ood was produced? Is
the consumer’s “right to know” a suitable justifcation or trade limiting regulations?
2. How will restrictions to GM technologies, including labeling, aect international trade? How
can these eects be limited? 3. Is “substantive equivalence” a suitable method o determining “like” products? I not, how
should “like” products be determined?
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4. Is the precautionary principle a suitable basis or regulating GM oods? o what extent and
or what duration is use o the precautionary principle suitable?
5. How should the WO approach other international agreements, such as the Biosaety
Protocol, that may be interpreted as justiying limitations to the trade o GM products? 6. I international harmonization is not possible to what extend can countries exceed
international regulatory standards in their domestic policies? 7. In the development o GM ood guidelines is there an acceptable amount o GM
contamination in “GM-ree” ood? I so, what is that tolerance level? Glossary
Genetically modifed organisms — Organisms whose genes have been altered to include avourable
traits that do not occur naturally. In contrast to selective breeding, which has been done or centuries
these crosses occur at the DNA level, meaning genes or a avourable trait rom one organism are
inserted into the genome o another organism so that subsequent generations will exhibit the desired
trait. Genes can be taken rom other species (e.g. fsh genes inserted into tomatoes to improve cold
tolerance). Currently, only GM plants have been approved or human use, however GM animalproducts are in the works.
Precautionary principle — A method o policy making based on proactive regulations. Te
precautionary principle is used when there is reason to believe something may be unsae but
insucient data is available to prove the risk. Tese policies are meant as precautions against
unknown risks.
Substantive equivalence — Reers to the act o evaluating products based on the physical dierences
or lack thereo between two products. Te process that went into creating these products is not
considered. Substantive equivalence is the basis or many o the laissez-aire policies o pro-GMO
countries. Because the physical products are considered equivalent labels are not considered
necessary because like-products must be handled the same way.
Additional Resources
http://www.globalissues.org/issue/188/genetically-engineered-ood
Provides a quick summary o the main issues surrounding GM ood.
http://www.who.int/oodsaety/publications/biotech/20questions/en/
Answers some o the basic questions regarding the saety concerns surrounding GM oods.
http://www.wto.org/english/tratop_e/sps_e/sps_agreement_cbt_e/c8s1p1_e.htm
Brie summary o the GMO trade conict rom the perspective o the WO.
http://www.wto.org/english/tratop_e/sps_e/sps_agreement_cbt_e/c8s2p1_e.htm
Brie summary o the uses o the precautionary principle in trade regulations.
http://www.cid.harvard.edu/cidtrade/issues/biotechnology.html
Provides a summary o the current conicts regarding biotechnology.
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Sources
Cadot, Olivier, Aikika Suwa-Eisenmann, and Daniel raca. rade-related Issues in the Regulation o
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