Rice Imports May Surge 11 Times If Tariffs Removed, Farm Ministry Says

Japan’s rice imports may surge 11 times from the 770,000 metric tons a year bought now should it remove tariffs on overseas supplies under a free-trade agreement with exporters proposed by Prime Minister Naoto Kan. Japan, self-sufficient in rice, may buy an additional 7.6 million tons a year from overseas should it completely eliminate tariffs of 341 yen ($4.2) per kilogram, the Ministry of Agriculture, Forestry and Fisheries said in a report today. Kan may announce Japan’s participation in the Trans-Pacific Partnership Agreement with countries including the U.S., Australia and Vietnam next month when he chairs the summit of the Asia-Pacific Economic Cooperation forum. Cabinet members including Foreign Minister Seiji Maehara said participation in the pact, under which tariffs are to be eliminated in principle, is needed to bolster growth amid competition from industrial exporters such as South Korea. “Considering the huge impact on domestic farm production, it looks very difficult for Japan to join the agreement” unless major farm products including rice are exempted from the removal of tariffs, said Ruan Wei, chief economist at the Norinchukin Research Institute Co. in Tokyo. Agriculture Minister Michihiko Kano told reporters on Oct. 22 the government should consider the importance of agriculture properly in carrying out its policy. Central Union of Agricultural Co-Operatives, Japan’s largest farm lobby, urged ruling party lawmakers including Vice Agriculture Minister Nobutaka Tsutsui on Oct. 19 they should not support participation in the Trans-Pacific Partnership Agreement as the pact would deal “a fatal blow” to farming. Wheat, Sugar The agriculture ministry estimates 679,000 tons of domestic wheat production, or 90 percent of output, would be replaced by imports if Japan removes import tariffs of 55 yen per kilogram. The government also estimates that 869,000 tons of sugar output and 272,000 tons of beef production would be replaced by imports should tariffs be eliminated. Japan agreed to give minimum market access to rice- exporting countries at the Uruguay Round of world trade talks in 1993, buying 770,000 tons a year. The country started rice imports under the agreement in the fiscal year that began in April 1995, and purchased a total of 10.12 million tons in the past 15 years, according to the ministry. Stockpiles of foreign rice stood at 970,000 tons as of March 31, down from 1.11 million tons a year earlier.