The trade effects of Bt cor

This thesis quantifies the impact of Bt corn on trade and the welfare of economic agents in three trading blocs by anticipating possible policy responses to the introduction of this new technology. The three trading blocs are the Western Hemisphere, European Union and Rest of the World. The model used in the study is a multi-regional, non-spatial, partial equilibrium trade model. Consumers' surplus, producers' surplus and total welfare for eleven different scenarios are compared.;The European Union alone cannot significantly change the world corn price. If corn demand falls in both the European Union and the Rest of the World the effect on the corn price is much larger. Western Hemisphere producers lose most if other two trading regions only trade among themselves. The introduction of labeling could eliminate trade friction but it is costly.