Developing countries accounted for 38 percent of the worldwide acreage of biotech crops in 2005 according to the International Service for the Acquisition of Agri-Biotech Applications (ISAAA). A recent review of peer-reviewed research of on-farm experiences with commercial cultivation of biotech crops in developing countries provides comparisons across countries and identifies factors that influence the economic value of biotech crops. The study titled “Economic Impact of Transgenic Crops in Developing Countries” by Dr. Terri Raney, Senior Economist in the Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations in Rome, Italy was published in Current Opinions in Biotechnology.
Peer-reviewed analyses of commercial cultivation of insect-resistant (IR) cotton have been completed for Argentina, China, India, Mexico and South Africa. Average yield increases ranged from 11 percent to 65 percent. Yield increases were smallest in Mexico where Bt cotton provided resistance to a narrow range of pests. The greatest benefits were in South Africa.
The latest WTO Trade Policy Review of U.S. trade policy provides an informed outsider’s view of U.S. trade policy. The general conclusions are that the U.S. has one of the world’s most open economies, but market access restrictions and subsidies remain in important areas, including agriculture.
Actions at the recently completed meeting of the 132 countries that are parties to the Cartagena Protocol on Biosafety have again raised issues on the costs of compliance for international environmental regulations. By 2012 documents for commodities that now “may contain” Live Modified Organisms (LMOs) will need to identify and quantify the amount of LMOs. The costs of testing for LMOs are only part of the burden of redesigning food chains and increased shipping costs when testing problems develop.
The failure of trade negotiators for the U.S., EU, Japan, Brazil, India and Australia to achieve significant breakthroughs on groundwork for a new WTO agreement at two days of meetings in London that ended last Saturday night should make analysts begin to think about a deal not being completed. Moving toward more open trade is important even without a new WTO agreement prompting change.
President Bush’s recent trip to India and the agreements signed there are indicators of new foreign policy and trade relationships between the U.S. and India. These improved relations may result in increased U.S. agricultural exports. India is currently a net exporter of agricultural products to the U.S.