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1. Protectionism
2. Compromise
3. Liberalization
- Japan has consistently met its obligation under AoA by reporting an Aggregate Measure of Support as ZERO.
- Protects domestic rice industry through substantial tariff barriers for imported rice
- Japanese farmers are shielded from all foreign competition
What is Protectionism?
- Restraining trade between states
- Designed to allow fair competition between imports and _domestic goods an services
- A country may avoid reporting its domestic agricultural support under the AMS by classifying it as a “green box” measure.
- Annex 2:
"A country may avoid reporting its domestic agricultural support under the AMS by classifying it as a “green box” measure" (Udo, 177).
-Rice Paddy Diversion payments
- Also classifies for payments during relief of natural disasters, land consolidation and interest concessions for agricultural loans as "Green Box" measures
- According to Articles 4, 5 and Annex 5 countries are prohibited from assessing non tariff barriers to trade agricultural products
- Japan has continued to maintain incredibly high tariffs
- Under the AoA, Japan is required to import a certain amount of foreign rice each year under what is known as the Tariff Rate Quota (TRQ)
- In 2001, Japan’s import quota for rice and rice products was 682,000 tons
- A large percentage of imported rice within the TRQ is not sold within Japan’s domestic market, as the AoA intended, but is donated as food aid
- Developing countries prefer to focus on implementation of issues from previous Round
- Current stand of Japan
- Locally grown short-grain rice is superior to the long-grain version grown in places such as California and Southeast Asia.
- Rice protectionist measures are necessary to ensure that Japan can feed its own population
GATT
“The JA group is opposed to participation in the TPP negotiations that can not be compatible with the food security of our country.” - Japan Agriculture Website
- Get superior bargaining powers
- Farmers are highly reliant on government support
- Agricultural subsidies lead to overproduction in world market
- AoA is unfair because developed countries get preferential treatment
- Concerned with fair competition
- Influx of foreign goods stifles farmers' markets
- In favor of eliminating subsidies and promoting market access
Uruguay Round Negotiations
Marrakesh Agreement
- Recognized that domestic policies should be regulated in addition to policies governing international trade such as tariffs and quotas
- It covered both border measures and domestic policies
- Border measures refer to the set of policies targetted towards trade flows and prices by the use of import quotas and tariffs
- Domestic Agricultural support is divided into two categories:
- Those that distort trade and those that do not
Agreement of Agriculture
WTO
Aksoy, Ataman. "Global Agricultural Trade and Developing Countries." World Bank. N.p., n.d.
Web. 13 Mar. 2014.
"Defend the local community and economy from TPP." JA ZenChu. N.p.. Web. 19 Mar 2014. <http://www.zenchu-ja.or.jp/food/tpp>.
George, Aurelia. "The Politics of Interest Representation in the Japanese Diet: The Case of Agriculture." Pacific Affairs. 64.4 (1991): 506-528. Web. 20 Mar. 2014.
Udo, Chandler H. "Japanese Rice Protectionism: A Challenge for the Development of Agricultural
Trade Laws." Boston College International and Law Review 9th ser. 30.1 (2008): n. pag. Web. 15 Mar. 2014.
Vogel, David. "Consumer Protection and Protectionism in Japan." Journal of Japanese Studies 18.1
(1992): 119-94. Web. 14 Mar. 2014.
Yanagisawa, Takuya, and Kuo Cheng-Tian. "The Politics of Japan's Rice Trade." Journal of NorthEast Asian Studies. (1992): 19-39. Web. 20 Mar. 2014.
2. Compromise
Substantial agricultural autonomy remains in Japan
Increase domestic production efficiency and incentives
Allows prices to remain stable, harnessing total quantity of rice imported
Profits Japan with access to mutually beneficial trade partnerships