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Economics and Politics of Rice Policy in Japan: A Perspective on the Uruguay Round

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Yujiro Hayami
Yoshihisa Godo

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Abstract

This paper reviews the recent problems of the opening of Japan's rice market and evaluates the Japanese government's rice policy from both an economic and political viewpoint. The Japanese government made strenuous resistance to the opening of Japan's rice market during the negotiations on agricultural trade at the GATT Uruguay Round. Eventually Japan's rice was made exempt from tariffication by compensating in the form of increased 'minimum access' import quotas. However, the tariffication rule of the final agreement guarantees that importing countries can impose considerably high tariffs. Thus, the volume of Japan's rice imports could be decreased if the Japanese government accepted the tariffication agreement. In retrospect the decisions made by the Japanese government have effectively protected the vested interests of the domestic rice distribution system, while hindering the structural improvement of the Japanese rice industry.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5341.

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Date of creation: Nov 1995
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Handle: RePEc:nbr:nberwo:5341

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F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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  1. Josling, Tim & Honma, Masayoshi & Lee, Jaeok & MacLaren, Donald & Miner, Bill & Sumner, Dan & Tangermann, Stefan & Valdes, Alberto, 1994. "The Uruguay Round Agreement On Agriculture: An Evaluation," Commissioned Papers 14621, International Agricultural Trade Research Consortium. [Downloadable!]
  2. Honma, Masayoshi & Hayami, Yujiro, 1986. "Structure of agricultural protection in industrial countries," Journal of International Economics, Elsevier, vol. 20(1-2), pages 115-129, February. [Downloadable!] (restricted)
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  1. Taniguchi, Kiyoshi, 2001. "A General Equilibrium Analysis Of Japanese Rice Market Trade Liberalization," 2001 Annual meeting, August 5-8, Chicago, IL 20660, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Chen, Chi-Chung & McCarl, Bruce A. & Chang, Ching-Cheng & Hsu, Shih-Hsun, 2002. "Spatial Equilibrium Modeling With Imperfectly Competitive Markets: An Application To Rice Trade," 2002 Annual meeting, July 28-31, Long Beach, CA 19687, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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