Should genetically modified food labeling policies be harmonized?

Labeling requirements for genetically modified (GM) foods vary dramatically across nations. The European Union (EU) has stringent mandatory labeling laws, whereas the United States does not require any GM labeling, but has guidelines for the voluntary labeling of non-GM foods. Developing countries are caught in the middle and some have adopted the EU approach in order to maintain food exports to Europe. With an analytical model, we evaluate alternative approaches to harmonizing international labeling requirements for GM food and find important welfare gains associated with harmonization. Gains from harmonization are especially important for food crops, and our analytical results are illustrated with a case study of GM wheat