The Potential Impacts of the Biosafety Protocol on Agricultural Commodity Trade

Foreword At its recent plenary meeting, the International Food & Agricultural Trade Policy Council (IPC) discussed the issues surrounding the implementation of the Biosafety Protocol (BSP). During that discussion, IPC Members expressed grave concerns that the potential implications for the agricultural trade system, in particular for importing and developing countries, were not well documented or understood by those making the decisions on the BSP. IPC members were also concerned that policy makers do not know who will bear the costs of implementation, what the unintended consequences might be, or whether the implementation options being considered were necessary to achieve the objectives of the BSP. This paper, based on analysis by Professor N. Kalaitzandonakes and with input from the IPC, identifies potential issues that will arise as these implementation decisions are made, and outlines the likely effects on farmers, consumers, and traders in developed and developing countries. Before the parties to the BSP take further decisions on implementation, the IPC believes that the costs and implications for the global agricultural system, for food importers, and for farmers must be understood. The IPC plans to continue its analytical work to quantify the costs and implications of potential BSP implementation decisions on developed and developing country importers. About the IPC The International Food & Agricultural Trade Policy Council (IPC) convenes high-ranking government officials, farm leaders, agribusiness executives and agricultural trade experts from around the world and throughout the food chain to build consensus on practical solutions to food and agricultural trade problems. An independent group of leaders in food and agriculture from industrialized, developing and least developed countries, the IPC's thirty-six members are chosen to ensure the Council's credible and impartial approach. Members are influential leaders with extensive experience in farming, agribusiness, government and academia. Executive Summary In September 2003 the BSP entered into force. In the coming months, the signatories will be making key decisions about implementing the Protocol, which could significantly affect global agricultural production, consumption and trade; induce structural changes; and ultimately, affect social welfare. For Living Modified Organisms destined for food, feed, or processing (LMO-FFPs), the key implementation issues to be decided in 2005 include: • What kind of information should be required with export documentation? • How will " Adventitious Presence " (AP) be defined? • Will AP considerations be for LMO crops only or for all (including non-LMO) crops? • What thresholds should be established for AP? …