In January 2000, in an article in The New York Times, Andrew Pollack described the world’s first treaty regulating trade of genetically modified products. The treaty, established between 130 nations, is focused on protecting the environment. To allow countries to monitor genetically modified products and to protect natural species from potential competition from new species, it establishes guidelines for labeling international shipments of food containing genetically altered ingredients. It doesn’t, however, address such labelling of products in stores. Despite this agreement, the controversies that surround biotechnology are expected to continue. A significant portion of American-grown crops contain genetically modified grains or soybeans, and American farmers are losing millions of dollars of exports as increasing numbers of Europeans are rejecting food that is genetically modified.

Required:
Using some of the concepts from standard-setting and financial accounting theory, discuss the implications of there being no requirement to label products with genetically modified ingredients.