Low level presence of genetically modified crops in food and feed trade in Malaysia
Genetic engineering technology has been applied extensively on crops. Although widely traded, the commercialization of genetically modified (GM) crops is subjected to domestic regulatory approval. Considering that the authorization processes are not synchronized across countries or be...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
2019
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/85370/1/IKDPM%202019%204%20-%20ir.pdf |
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| Summary: | Genetic engineering technology has been applied extensively on crops. Although widely
traded, the commercialization of genetically modified (GM) crops is subjected to domestic
regulatory approval. Considering that the authorization processes are not synchronized across
countries or better known as asynchronous approval, the mixture of authorized and unauthorized GM
crops along the supply chain cannot be avoided. The possible implication is that GM crop authorized
in one country might be found in another country that has not yet given authorization, thus
creating a low level presence (LLP) situation. In light of this development, the research aimed
to investigate these issues through its specific objectives.
For the first objective, which is to examine trade impacts from asynchronous approvals of GM
crops, the research has developed a Protectionism Index for 31 countries to reflect the
stringency of GM crops regulatory mechanisms that cause asynchronous approval problems.
Together with other observable variables and based on panel data structure, the index was
empirically tested in a gravity model of trade. It was found that in general, asynchronous
approval has a negative impact on trade particularly for maize. The second objective
focuses on evaluating the welfare effect using bilateral trade data based on changes in
consumer surplus and costs to the government giving the change in LLP tolerance. The results
demonstrate that non-zero tolerance for LLP can increase the consumer surplus and
reduce the cost to the government in implementing the regulations to monitor LLP
occurrence. Overall, these will lead to an increase in welfare effects. The third objective is to
investigate factors that could lead the LLP policy formulation direction. Data were collected using
the questionnaire and from the interviews, mainly targeted respondents from the government sector,
industry, and non-government organization. Based on the analyses, several factors are found to be
critical. In particular, the Partial Least Square modeling indicated the applicability of the
policy with existing laws as well as its consistency with existing international guidelines were
found to be significant. Institutional capacity also plays an important role to make a
practical policy. Findings also suggested public awareness and
availability of resources should not be neglected.
Several implications have emerged from the findings. By studying impacts from
asynchronous approval and LLP, empirical data on the broader question of how
policymakers address science and new technologies related issues are made available. The research
findings are relevant and can assist policymakers in Malaysia to understand
better about the existing magnitude of LLP as well as the issues and challenges that
the government is facing and will be facing when formulating and implementing LLP
policy. The results also provide policymakers with a different perspective on LLP
tolerance options together with its trade and regulatory consequences. Higher LLP
tolerances can restrain trade disruptions and related economic costs but may
be feasible only when no substantial food, feed or environmental safety concerns
be present. Meanwhile, lower tolerances imply higher costs as segregation becomes more costly
and trade disruption more likely. Thus, being an importer of maize and soybean, Malaysia
should have a clear policy direction. A practical LLP management strategy is not only crucial
to keep food and feed safe, but also can provide transparency and predictability for
imports and minimizing
disruptions to trade. |
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