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GTAP Resource #4781

"Why public acceptance matters in GMO food markets?"
by Yang, Anton

Since 2011 there has been increasing debate with respect to the safety of genetically modified organisms (GMOs) in China. Many genetically modified (GM) crops have exceptional pest and disease resistance, can tolerate environmental stress, increase yields, and contribute to sustainable agriculture. However, Chinese consumers’ level of acceptance of GM foods is very low. In September 2014, China’s Ministry of Agriculture (MOA) suspended its import approval process for a GM soybean variety—marking the first time that Chinese officials cited public opinion as a reason to delay the approval of GM crops for importation. In 2015, China released its latest No.1 Central Document, which it emphasizes the accelerating of agricultural technological progress while focusing on China’s own agricultural modernization. While reviewing the No. 1 Central document thoroughly, author’s view is that China’s policy is aimed at increasing the public acceptance of its domestic GM crops without necessarily taking any further actions to reduce trade barriers of foreign imports.

This paper (1) links consumers’ attitude towards the consumption of GM foods to the latest changes in Chinese agricultural policy as well as the possible economic impacts on China (2) employs technical approaches in determining the effects the GMO debate in China has had and will have on the United States. A general equilibrium model with the GTAP framework is utilized to determine the impact on trade, focusing on export sales, domestic price changes, agricultural productivity changes and welfare effects of changing regulations and public acceptance of GMO crops in China.

The paper examines the prospects of implementing rational agricultural policies on GM soybeans. It finds that Chinese agricultural policies aimed at increasing the public acceptance of GM soybeans as well as policies that promote GM technologies and boost land productivity will improve the economic welfare in both the United States and in China.

Resource Details (Export Citation) GTAP Keywords
Category: 2015 Conference Paper
Status: Published
By/In: Presented at the 18th Annual Conference on Global Economic Analysis, Melbourne, Australia
Date: 2015
Version: Draft
Created: Yang, A. (4/15/2015)
Updated: Yang, A. (4/15/2016)
Visits: 2,147
- Agricultural policies
- Domestic policy analysis
- Food prices and food security
- Non-Tariff barriers
- Asia (Southeast)
- North America

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