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Socio-Economic Impacts

The following provides an overview of the Global Industry Coalition views on socio-economic considerations in decision-making under the Cartagena Protocl on Biosfety for the discussion on this issue that will take place at the fifth meeting of the Parties to the Protocol (Nagoya, Japan from 11-15 October 2010).

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 Any work plan addressing socio-economic considerations in decision-making on living modified organisms (LMOs) must remain within the scope of the language of Article 26 of the Cartagena Protocol on Biosafety (Biosafety Protocol), which requires that these considerations: (a) must be taken into account in a manner consistent with Parties’ international obligations; and (b) must be limited to those arising from the impact of living modified organisms (LMOs) on the conservation and sustainable use of biological diversity.  Additionally, work on this issue must focus on continued research and information-exchange within this context, with the goal of informing the discussion at MOP-6 on capacity building needs in this area. 


A.  Scope of Socio-economic Considerations and Methods for Taking them into Account  
  • Article 26 of the Biosafety Protocol establishes the right of Parties to take into account socio-economic considerations arising from the impact of LMOs with regard to the conservation and sustainable use of biodiversity in reaching a decision on whether to import these organisms. 

  • However, when Parties are taking these impacts into account, Article 26.1 places several constraints on this consideration.  Firstly, Parties must limit any consideration of socio-economic impacts of LMOs to those impacts on the conservation and sustainable use of biological diversity.  Broadening the scope and type of socio-economic considerations to those beyond this limitation would be inconsistent with the provisions of the Protocol, reduce the transparency of the regulatory process, and increase the overall cost and length of time required in regulatory decision-making.                                                                                    

  • In addition, such considerations may only be taken into account consistent with Parties’ existing international obligations.  While the parameters of this limitation have not yet been explored in the Protocol context, consideration of existing obligations under the World Trade Organization (WTO) Agreements and those found under other international standard-setting bodies provide guidance to the Parties on this issue.  Decisions and guidance provided under the Protocol must take this limitation into account and avoid outputs that would jeopardize Parties’ abilities to comply with their other legal obligations.

  

B. Elements of a Draft Decision on Cooperation on identification of capacity-building needs for research and information exchange on socio-economic considerations (from the draft decision on Status of Capacity Building Activities)

  • At their fifth meeting of the Parties to the Biosafety Protocol (MOP-5), Parties will consider recommendations of the sixth “Coordination Meeting for Governments and Organizations Implementing or Funding Biosafety Capacity-Building Activities” (Coordination Meeting) regarding the “possibilities for cooperation in identifying needs for capacity building among Parties for research and information exchange on socio-economic impacts of living modified organisms”.  Additionally, the information collected from an online survey on the application of and experience in the use of socio-economic considerations in decision-making on living modified organisms will be shared with the Parties at MOP-5 to inform their discussions on this issue.

     

  • As recognized by the Parties at their fourth meeting, information sharing about the potential positive and negative impacts of LMOs on the conservation and sustainable use of biodiversity is an important part of the public education and awareness activities necessary for informed choice and public acceptance of biotechnology.  In addition, cooperation with regard to research and information exchange about the potential positive and negative socio-economic impacts of LMOs, including impacts on indigenous and local communities, can be useful for government regulators, public research institutes, private sector, academia, and other stakeholders as well as the public at large. 

     

  • The draft decision on this issue for consideration by the Parties at MOP-5 proposes that an ad hoc expert group on socio-economic considerations be established to further the goal of “cooperation on identification of capacity-building needs for research and information exchange on socio-economic considerations”.   The GIC is of the view that the work of such a group must focus on the recommendation elaborated by the Coordination Meeting, namely, “cooperation on identification of capacity building needs for research and information exchange on socio-economic considerations”.  As currently stated in the draft decision for MOP-5, the terms of reference for the expert group include activities that go well beyond “identification of capacity building needs” and thus prejudges the outcomes of a work plan on socio-economic considerations that will be discussed by the Parties at their sixth meeting.

     

  •  For this reason, the GIC strongly recommends that the terms of reference be amended to include only those activities that relate directly to the objectives of this agenda item for MOP-5.  Specifically, the terms of reference should focus on activities related to “cooperation on identification of capacity-building needs for research and information exchange on socio-economic considerations”, and should exclude any activities to develop criteria or guidance documents outlining ways in which socio-economic issues could be considered in the decision-making process on LMOs.  The GIC believes that such activities should only be undertaken after a thorough and informed discussion of Article 26 by the Parties that will occur at MOP-6, rather than based on the discussion at MOP-5 which will occur only in relation to capacity building needs.

     

  • Additionally, it is important that any work plan agreed to by the Parties at MOP-5 on this subject matter be limited to the mandate of Article 26.1 of the Biosafety Protocol, which requires that socio-economic considerations: (a) must be taken into account in a manner consistent with Parties’ international obligations; and (b) must be limited to those arising from the impact of living modified organisms (LMOs) on the conservation and sustainable use of biological diversity.  Therefore, any possible outcomes elements of capacity building related to socio-economic considerations that are elaborated by the ad hoc expert group must be limited to those that fit within the limited context of Article 26.1.