Question

In: Economics

how regulatory differences between the US and EU have led to a bifurcation in some world...

how regulatory differences between the US and EU have led to a bifurcation in some world agricultural markets. In the course of your response provide background information on the definition and development of GMOs

Solutions

Expert Solution

Gmo's are a genetically modified organism whose genetic material has been altered using genetic engineering techniques.Americans accepted genetically modified organisms (GMOs) in their food supply without question, while the more precautionary Europeans rejected them. But GMOs went through a period of significant controversy in the US during the early years starting in the 1980s.last half-decade has seen a rise in consumer concern, state-based initiatives for labeling and the emergence of “GMO-free” claims on a growing number of products marketed in the US.

In Europe, meanwhile, the controversy seems to have never subsided. Half of the European Union’s 28 countries indicated they intend to opt out of a new GM crop plan, apparently over concerns over food safety, in a blow to the biotech industry.

Some of the reasons why they bifurcated is An uproar over dairy cows .The first two genetically engineered food products in the US were recombinant chymosin, or rennet (an enzyme used in cheese production), and recombinant bovine somatotrophin (BST), a growth hormone used to extend the lactation cycle in dairy cows. Both are produced in a genetically engineered microbe in much the same manner as many drugs. Recombinant rennet was accepted without a whisper in both the US and Europe. Recombinant BST caused an uproar. Apart from this food safety and regulation, ethics were also a reason.

European grocery stores are willing to compete against one another by making claims that impugn the safety of foods being sold by their competitors, while American grocery chains are generally not. The aggressive approach taken by FDA against claims about rBST may well be a contributing factor to a legacy of American stores accepting the safety of GMO products. And as FDA has relaxed its efforts to police claims about the alleged health benefits of foods, the American food industry has shown signs of willingness to attract customers by touting the attractiveness of organic or “GMO-free” foods. The putative benefits of either are still not recognized by US regulatory agencies.

A slightly more complete history would point to a number of other incidents that have led to the sharp division of opinion and bifurcation that exists today. The Flavr Savr tomato in 1994 was the first genetically modified crop to be commercialized. Designed to stay ripe and firm longer, the product failed to meet the needs of the US tomato industry. But there is also ice-nucleating or “Frostban” bacteria; StarLink corn; the Pusztzai incident; African rejection of US food aid and the list continues.


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