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Biosafety at the crossroads: An analysis of South Africa's marketing and trade policies for genetically modified products

Biosafety at the crossroads: An analysis of South Africa's marketing and trade policies for genetically modified products
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    IFPRI Discussion Paper 00796 September 2008 Biosafety at the Crossroads An Analysis of South Africa’s Marketing and Trade Policies forGenetically Modified Products Guillaume P. GruèreDebdatta Sengupta Environment and Production Technology Division    INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE  The International Food Policy Research Institute (IFPRI) was established in 1975. IFPRI is one of 15agricultural research centers that receive principal funding from governments, private foundations, and international and regional organizations, most of which are members of the Consultative Group onInternational Agricultural Research (CGIAR). FINANCIAL CONTRIBUTORS AND PARTNERS IFPRI’s research, capacity strengthening, and communications work is made possible by its financialcontributors and partners. IFPRI receives its principal funding from governments, private foundations,and international and regional organizations, most of which are members of the Consultative Group onInternational Agricultural Research (CGIAR). IFPRI gratefully acknowledges the generous unrestricted funding from Australia, Canada, China, Finland, France, Germany, India, Ireland, Italy, Japan, Netherlands, Norway, South Africa, Sweden, Switzerland, United Kingdom, United States, and World Bank.    AUTHORS Guillaume P. Gruère, International Food Policy Research Institute Research Fellow, Environment and Production Technology DivisionCorrespondence can be sent  Debdatta Sengupta, International Food Policy Research Institute  Research Analyst, Environment and Production Technology Division Notices 1 Effective January 2007, the Discussion Paper series within each division and the Director General’s Office of IFPRIwere merged into one IFPRI–wide Discussion Paper series. The new series begins with number 00689, reflecting theprior publication of 688 discussion papers within the dispersed series. The earlier series are available on IFPRI’swebsite at 2 IFPRI Discussion Papers contain preliminary material and research results. They have not been subject to formalexternal reviews managed by IFPRI’s Publications Review Committee but have been reviewed by at least oneinternal and/or external reviewer. They are circulated in order to stimulate discussion and critical comment.   Copyright 2008 International Food Policy Research Institute. All rights reserved. Sections of this material may be reproduced forpersonal and not-for-profit use without the express written permission of but with acknowledgment to IFPRI. To reproduce thematerial contained herein for profit or commercial use requires express written permission. To obtain permission, contact theCommunications Division    iii Contents Acknowledgments vi   Abstract vii   1. Introduction 1   2. A Unique but Challenging Situation 4   3. Import Regulatory Issues 18   4. Export and Transit Issues 26   5. Domestic Marketing Considerations 32   6. Conclusions: From Regulation Changes to Economic Effects 39   Appendix A: List of Institutions Consulted In June 2007 in South Africa 42   Appendix B: Additional Table and Figures on Imports and Exports 43   References 52    iv List of Tables 1. Chronology of GM events approved for planting in South Africa 42. Estimated area and adoption rate of GM crops in South Africa, 1999–2007 53. Chronology of GM events approved for imports in South Africa, by crop 74. Descriptive statistics on the share and total quantity of South African imports that may havecontained GM material, for each product 75. Groups of importers based on their acceptance of GM products 116. Descriptive statistics on the shares of South African exports that may contain or  be derived  from GM crops 137. Descriptive statistics on the shares of potentially GM maize and flour exports, assuming group(3) countries are enforcing their import bans 148. Total reported import permits and quantities of GM maize and soybeans under commodityimport permits (1999–2007). 199. Reported export permits for GM material and quantities of GM export under these permits bycrop and year inSouth Africa 2610. Reported information on border control of GM imports in the region. 2911. Major issues, selected policy options, and likely consequences 40B.1. Year of initial adoption of each GM crop in the 13 main GM-producing countries in 2006(excluding South Africa) 43  v List of Figures 1. Imports of GM/non-GM maize (1000mt) 9   2. GM/non-GM cottonseed imports (1000mt) 9   4. GM/non-GM rapeseed imports (mt) 10   5. Estimated exports of GM/non-GM maize (1000mt) 14   6. GM/non-GM maize flour exports (1000mt) 15   7. GM/non-GM soy exports (1000mt) 15   8. South Africa’s regulatory framework for imports: GM event authorization, GM commodityimport management, and rejection rules 18   9. The price wedge argument in a partial equilibrium framework: the maize sector situation inthe Western coastal area of South Africa. 22   10. Political map of Southern Africa. 28   B.1. GM/non-GM imports of maize starch (1000mt) 43   B.2. GM/non-GM imports of maize starch (1000mt) 44   B.3. GM/non-GM oil maize imports (mt) 44   B.4. GM/non-GM cotton imports (1000mt) 45   B.5. GM/non-GM cottonseed oil imports (1000mt) 45   B.6. GM/non-GM cottonseed cake imports (1000mt) 46   B.7. GM/non-GM soybean imports (1000mt) 46   B.8. GM/non-GM soy oil imports (1000mt) 47   B.9. GM/non-GM rapeseed oil imports (1000mt) 47   B.10. GM.non-GM maize starch exports (1000mt) 48   B.11. GM.non-GM maize oil exports (1000mt) 48   B.12 . GM/non-GM exports of cotton (1000mt) 49   B.13. GM/non-GM exports of cottonseeds (mt) 49   B.14. GM/non-GM cottonseed oil exports (mt) 50   B.15. GM/non-GM cotton cake exports 50   B.16. GM/non-GM soy cake exports (1000mt) 51   B.17. GM/non-GM soy oil exports (1000mt) 51  
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