Kym Anderson and Lee Ann Jackson
Centre for International Economic Studies, University of Adelaide, South Australia

A global computable general equilibrium model is used to exam- ine how adoption of genetically modified (GM) biotechnology affects the welfare of interest groups within the United States and the European Union in the absence of policy responses to this technology and in their presence. Results indicate that changes in real income of producers can help explain differing GM policies in these two regions.

Key words: biotechnology, general equilibrium, political economy, standards, trade policy.