A new look at the transatlantic gap over biotech crops.

A new research paper published by the World Bank indicates that the differences between the U.S. and Europe in accepting genetically modified crops are influenced not only by "cultural" views of food and environment but also by economic interests and lobbying efforts by European farm organizations.

The paper, "Trade, Standards, and the Political Economy of Genetically Modified Food," uses political economic theory to explain the differing consumer acceptance between Europe and the U.S. The authors conclude that, in the case of biotech foods, the threat of competition from agricultural producers who are better suited to adopt biotech crops, such as many U.S. farmers, have influenced the European approach and lobbying activities.

While other political economic models generally assume that companies will engage in lobbying activities for reducing regulations, the model used shows that increased competition can motivate companies to engage in strategic lobbying for stricter standards. Domestic producers that compete in their home market often find it easier than the importing competition to influence standard setting and ...