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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

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.

Suggested Citation

  • Yujiro Hayami & Yoshihisa Godo, 1995. "Economics and Politics of Rice Policy in Japan: A Perspective on the Uruguay Round," NBER Working Papers 5341, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:5341
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    References listed on IDEAS

    as
    1. Grossman, Gene M & Helpman, Elhanan, 1995. "Trade Wars and Trade Talks," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 675-708, August.
    2. Anne O. Krueger & Roderick Duncan, 1993. "The Political Economy of Controls: Complexity," NBER Working Papers 4351, National Bureau of Economic Research, Inc.
    3. Josling, Timothy E. & Honma, Masayoshi & Lee, Jaeok & MacLaren, Donald & Miner, William M. & Sumner, Daniel A. & Tangermann, Stefan & Valdes, Alberto, 1994. "The Uruguay Round Agreement On Agriculture: An Evaluation," Commissioned Papers 14621, International Agricultural Trade Research Consortium.
    4. 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.
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    Cited by:

    1. Anderson, Kym, 1995. "Agricultural Competitiveness After the Uruguay Round," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 63(03), pages 1-12, December.
    2. Daisuke Takahashi, 2009. "Quantitative evaluation of the Japanese rice policy reforms under the WTO agreement on agriculture," Economics Bulletin, AccessEcon, vol. 29(2), pages 712-725.
    3. TANAKA Tetsuji & HOSOE Nobuhiro, 2009. "Productivity Shocks and National Food Security for Japan," Discussion papers 09004, Research Institute of Economy, Trade and Industry (RIETI).
    4. Choeun, Hong & Godo, Yoshihisa & Hayami, Yujiro, 2006. "The economics and politics of rice export taxation in Thailand: A historical simulation analysis, 1950-1985," Journal of Asian Economics, Elsevier, vol. 17(1), pages 103-125, February.
    5. 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).
    6. Takahashi, Daisuke, 2012. "The distributional effect of the rice policy in Japan, 1986–2010," Food Policy, Elsevier, vol. 37(6), pages 679-689.
    7. 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).

    More about this item

    JEL classification:

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

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