Trade Impact of European Measures on GMOs Condemned by the WTO Panel

In May 2003, the United States, Canada and Argentina launched a World Trade Organization (WTO) case against the European Union concerning its authorization regime for biotech products. In November 2006, the WTO condemned this regime. Using a gravity equation, we estimate the reduction in exports of potentially affected products from the complainants to the European Union. Our results suggest that the European moratorium and product-specific measures have a negative effect on trade, as do safeguard measures adopted by Germany, Italy and Greece.