Under the Sanitary and Phytosanitary (SPS) Agreement of the World Trade Organization, the acceptability of a governments regulatory choices in the SPS area, which includes many biotechnology-related issues, is judged based on, among other things, whether a valid risk assessment was conducted and a determination was made regarding the appropriate level of protection. Trade impact is also an element in the evaluation of regulations as potential nontariff trade barriers under the SPS Agreement. Under the Technical Barriers to Trade (TBT) Agreement, standards and labeling policies may be judged based on the level and pattern of their trade impacts relative to their effectiveness in achieving the regulatory programs stated objective (e.g., satisfying consumers right to know). The question—to what extent the consumers right should be carried out has evoked varied responses among different nations and within the nations different sections of society.
Consumer demand for labeling of genetically modified foodstuffs keeps changing. Even though federal agencies in the U.S. are still defining the appropriate regulatory process and labeling of bio-engineered products, public interest continues to be heightened as increased visibility of these products and issues develop. This broadening scope of perception, based on various representations of the value, safety and usefulness of biotechnology, is affecting the global food trade. The European Union (EU) as well as Japan, have raised serious concerns about some genetically modified crops now in the market. The EU has approved a measure requiring companies to label genetically modified foods. Norway has also required the labeling, and banned certain types, as well the release of GM crops, animals and other organisms into the environment. Austria and Luxemburg have banned the import of GM grain, and other countries are considering doing so as well.
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