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I-522 Tomorrow

Tomorrow Washingtonians will vote on I-522, which will require mandatory labeling of foods produced with biotechnology if passed.     

I came across this interesting (and apparently neutral) web site from Voter's Edge MapLight that catalogs the major arguments, donors, endorsements, etc. 

The list of donors on both sides is predictable, but after clicking through on the donations page, I found it interesting to see where the donations originated.  

This is not a fight between regular people but vested interested and organizations on both sides of the issue.  

Less than 1% of donations against I-522 are from individuals and only about 20% of donations for I-522 are from individuals.  The rest comes from "organizations" and "other" (I have no idea what "other" refers to).  

Also of interest is the location of donors.  Neither pro or anti I-522 camps can list Washington state as the largest source of donations.  The largest share of donations for I-522 (38.5%) comes from California and against I-522 (25%) are from Missouri (that's Monsanto).  Interesting that 7.5% of donations for I-522 are from the tiny geographic spot of D.C.   

i522donors.JPG

Make no mistake about it, this is a proxy fight for something much bigger than whether people in WA see labels on GMO foods.   

For interested readers, I've already offered my thoughts on the substance of the debate here.

The Politics of GMOs and GMO Labels

 

I was fascinated by a graph Parke Wilde put up on his Food Policy blog a couple weeks ago, in which he noted that not everyone who supports biotechnology opposes mandatory GMO labels or vice versa.  He proposed segregating people based on their views to two questions.

people commonly fail two distinguish two separate issues:
Is GMO technology dangerous or beneficial?
Should GMO labeling be mandatory or voluntary?
This scatter plot separates the two issues by putting attitudes toward GMOs on the horizontal axis and attitudes toward mandatory labeling on the vertical axis.

And then he included the following graph:

I like Parke's distinction.  But, I think there is something deeper going on here.  It is politics.  

I've previously commented  on the remarkably high correlations among voter's preferences for gay marriage, GMO labels, and size of farm animal cages.  What this suggest to me is that there is a strong political-ideology undercurrent driving much of the food debates.

In the case of GMOs, the evidence I have suggests that where one falls on the labeling issue (and somewhat on the GMO issue) is driven by political ideology.   

In a survey I did with Brandon McFadden in California just prior to the vote on mandatory labeling for GMOs, we found that political ideology strongly correlated with voting intentions.  According to my calculations, moving from the "extremely liberal" category to the "extremely conservative" category led to a 22.5 percentage point reduction in likelihood of voting "yes" on Prop 37.  Liberals are much more likely to want to mandate GMO labels.

Interestingly, however, this isn't because they are more likely to think GMOs are unsafe. 

In a different survey I conducted this summer (nationwide survey, N=1010) , I asked people whether they agreed/disagreed that "genetically engineered foods are safe to eat."  On a 5 point scale (1=strongly disagree and 5=strongly agree), I find that "extremely liberal" folks answer 3.05 on average and "extremely conservative" folks answer a 2.82 on average, a statistically significant difference.  Liberals are (somewhat) more likely to believe GMOs are safe.  

So, there seems to be something of a tension between beliefs about safety and willingness to use the state to mandate outcomes one desires.  

I strongly suspect there is another dimension here that partially explains the liberal tendency to want to regulate GMOs: the tendency to see corporations and capitalism as corrupting forces - i.e., aversion to agribusiness in the food sector. Thus, even if many liberals support GMOs in theory (being "for GMOs" on Parke's graph), they may not in practice (being "for mandatory labeling" on Parke's graph).   

 

Does China Require Mandatory Labeling of GMO Foods?

Proponents of mandatory labeling of GMOs in the U.S. often make claims to the effect that "Come on!  Even China requires labeling!" (e.g., see here, here, or here for just a few examples).  The implication is that we must not, heaven forbid, fall behind China in our regulatory regime!?!  

How accurate is this characterization?  It is true that China has a labeling law on the books.  But, does that have any implication for what actually happens on the ground? Here is one description of what happens in China, published in the Vermont Journal of Environmental Law:

Almost ten years after the enactment of the MMAGL [Management Measures on Agro-GMOs Labeling], the status of enforcement is far from satisfying. Despite the mandatory GM food labeling requirements, not all GM foods are labeled, and there is a lack of standardization among GM food and GMO-free food labeling in China’s food market. Even when food products have GM food labeling, the labels are not clearly visible. In addition to the enforcement issues, the rulemaking is outdated. The very narrowly defined first batch of products under the MMAGL is insufficient to cover the broad range of GM food in the market.
Food with GM soybeans is one example. In 2007, China imported 37.8 million metric tons of soybeans, and the United States, Brazil and Argentina accounted for thirty-six, thirty-three and twenty-nine percent, respectively. “The United States (85%) and Argentina (98%) produce almost exclusively GM soybeans.” In 2007, sixty-four percent of Brazil’s soybean crop was GM soybeans. Therefore, a large percentage of soybeans in China’s market are imported GM soybeans. A market survey report conducted in Tianjin, China in 2008, however, revealed that none of the soybeans or soybean powder had GM food labeling. The lack of GM food labeling for soybeans or soybean powder in the market reveals insufficient compliance with the MMAGL.

and

Various reasons exist behind the lack of compliance and enforcement of the MMAGL. One of the most important is the enforceability of the legislation itself. There are several issues in terms of the enforceability in the rulemaking. First, the zero percent tolerance without a reasonable adventitious presence threshold is both unrealistic and misleading.

I’d be careful about holding up China as some sort of example of what would happen in the US if mandatory GMO labeling were to pass.

Washington Initiative 522 on GMO Labeling

Last year there was much discussion on California's Prop 37, which would have mandated labeling of genetically engineered (GE) ingredients.  After enjoying strong a strong lead in the polls, Prop 37 actually failed to garner a majority of votes, and thus did not become law.   

One year later, Washington State now has a similar initiative up for vote (the text of the law is here; a few more details are here).  The issues at play are largely the same as those in California.  As I wrote then, the ultimate cost impacts will depend critically on how retailers chose to respond to the mandatory label, should the initiative pass.

One thing that makes the WA initiative different than the one on California is the sheer size of the state.  If Prop 37 had passed in California, it likely would have had important implications for the rest of the U.S., both because California is such a large agricultural producer and because they are such a large consumer of agricultural products.  WA, by contrast, is a much smaller state, population-wise, and they comparatively grown small amounts of corn and soybeans - the primarily GE food crops grown in the U.S. (WA grows a lot of wheat, but no GE wheat is commercially for sale in the US) . So, it is less clear what impact passage of I-522 would have for the rest of us.  Would it be worth it for Frito-Lay, Coca-Cola, Kellogg et al. to reformulate only for WA?  Would they only add a label in that state?  Would they pull out of WA all together?  Nobody knows.

I've received a couple calls from reporters asking about potential impacts on farmers and whether there is really a "zero tolerance" limit.  My thought on I-522 are largely the same as they were several months ago in relation to Prop 37: 

It is true Prop 37 doesn't literally force processors and retailers to adopt more expensive non-GE products but that may be the ultimate consequence (or it may not - but we have to keep open the possibility).  It is also true that Prop 37 doesn't literally impose zero tolerance but that may well be the ultimate consequence.  
Truth is we don't really know.  But, consider a possible chain of events at some point in the future.  Despite the wording of the law, some individual in CA tests and finds that a non-labeled product contains GE (ANY trace of GE no matter how small).  The manufacturer of the product is then sued.  Then, it would be up to the manufacturer to provide all the sworn statements of unintentional use of GE.  But, then how do you prove “unintentional” or "accidental"? This is especially [true] when every farmer (who provides the sworn statement) knows there is some chance the seed they plant contains at least some small traces of GE.  Even if the manufacturer withstands the legal challenge, non-trivial legal costs must be incurred to prove innocence.  Moreover, if one reads the full text of the law, they can see  that after July 1, 2019, the exception for "unintentional" use disappears - making the tolerance effectively zero at that time, 
It is that sort of reading and reasoning that I think folks are referring to (or at least that I am referring to) when saying that Prop 37 imposes zero-tolerance.   

Overall, it is difficult to know what effects passage of I-522 would have.  There is some chance manufactures will simply add the "contains GE label", most consumers will ignore it, and life goes on as usual (this seem to be what is implied will happen by the statements of many initiative supporters).  There is also a chance manufacturers will try to avoid the label for fear of losing customers, the entire production system eschews biotechnology, food prices go up, and farmers are less profitable (this seems to be what is implied by many opponents of the initiative).  Or anything in between could happen too.

One argument, which I find somewhat compelling is that food and biotech companies are hurting themselves by not being forthright about their products by getting on board with labeling.  It seems by fighting the label they have something to hide.  Why not spend money educating consumers rather than fighting the initiatives?  

The counter argument, which I find more persuasive, relates to one's vision for the proper role of government.  What do we want to allow the government to MANDATE companies say - to compel speech?  A case could be made that such a policy is appropriate when there are legitimate safety or health risks, for example transfats or sugar content.  But, the best science shows no such worries for biotechnology.  

Here is what Cass Sunstein, Obama's former "regulatory czar" had to say on the issue: 

The argument for labeling GM foods would be compelling if they posed risks to human health. This is, of course, a scientific question, and most scientists now believe that GM food, as such, doesn’t pose health risks. Last October, the American Association for the Advancement of Science spoke unequivocally. In its words, “the science is quite clear: crop improvement by the modern molecular techniques of biotechnology is safe.”

and

These arguments aren’t unreasonable, but they run into a serious problem, which is that GM labels may well mislead and alarm consumers, especially (though not only) if the government requires them. Any such requirement would inevitably lead many consumers to suspect that public officials, including scientists, believe that something is wrong with GM foods -- and perhaps that they pose a health risk.
Government typically requires labeling because it has identified such a risk (as in the case of tobacco) or in order to enable people to avoid or minimize costs (as in the case of fuel-economy labels).
A compulsory GM label would encourage consumers to think that GM foods should be avoided. This concern is hardly speculative. In Europe, compulsory labels have lead many retailers, anticipating an adverse consumer reaction, not to include GM foods on their shelves. In the U.S., the result could be economic damage to producers and consumers alike. And if consumers want to avoid GM foods, they can already purchase foods labeled “100 percent organic,” which lack GM ingredients.
In the abstract, it is hard to disagree with the claim that consumers “have a right to know.” But with respect to food, there are countless facts that people might conceivably want to know, and government doesn’t require them to be placed on labels. Unless science can identify a legitimate concern about risks to health or the environment, the argument for compulsory GM labels rests on weak foundations.

My thinking parallels Sunstein's, and that is why I tend to argue against mandated GMO labels (voluntary, however, is fair game).  

And, a reminder, no, I don't work for Monsanto.

Effect of GMOs in the Developing World

To hear many anti-GMO activists talk, one would think farmers are merely whims of greedy agribusinesses.  They have no power or choice to deny Monsanto.  In the developing world, we hear such outlandish assertions as GMOs causing suicide (see this paper for a thorough debunking of that claim).

The truth is that farmers adopted GMOs because they thought it would make them money, save them time, and improve their health and that of the environment.  Yes, Monsanto has made some money along the way, but farmers have benefited too (so too have consumers I might add).   

For the latest evidence on that front, I ran across this research by Kousesr and Qaim in the journal Agricultural Economics.  Here's the abstract:

Data from a farm survey and choice experiment are used to value the benefits of Bt cotton in Pakistan. Unlike previous research on the economic impacts of Bt, which mostly concentrated on financial benefits in terms of gross margins, we also quantify and monetize health and environmental benefits associated with technology adoption. Due to lower chemical pesticide use on Bt cotton plots, there are significant health advantages in terms of fewer incidents of acute pesticide poisoning, and environmental advantages in terms of higher farmland biodiversity and lower soil and groundwater contamination. Farmers themselves value these positive effects at US$ 79 per acre, of which half is attributable to health and the other half to environmental improvements. Adding average gross margin gains of US$ 204 results in aggregate benefits of US$ 283 per acre, or US$ 1.8 billion for the total Bt cotton area in Pakistan.