Japan Shifting Ag Policies

TOKYO (DTN) -- Turning agriculture into industry and turning farms into businesses will be key elements of Japan's new agricultural policy, government minister Akira Amari said.

In response to the Trans-Pacific Partnership (TPP) trade pact, the Japanese government plans to shift its agricultural policy from defensively setting tariffs and throwing pork-barrel construction projects into rural areas, to aggressively promoting exports.

Japan's ruling Liberal Democratic Party recently submitted to the government a set of proposals to help Japanese farmers and businesses cope with the likely impact of the Pacific trade deal.

The party proposals include measures to protect the country's farmers, such as buying the same amount of domestic rice as foreign rice imported under new quotas to be set up under the free trade agreement.

In a recent press briefing for foreign media reporters, minister Amari echoed the LDP proposals, saying the Japanese government plans to implement various measures to support Japanese agriculture, forestry and fisheries. Among the measures, the government will be effectively appealing the attractiveness of Japanese cuisine, or washoku. "Also, we will be promoting the sales of Japanese produce coming from various local economies to inbound tourists, so that we can explore the demand frontier from other countries," Amari said.

In Japan's agriculture of the future, farmers will be required to industrialize their farming activities, and turn their farms into businesses, Amari said. That will include more emphasis on data and information technology. "They will need to introduce marketing, branding and IT, and operate their farming activities as businesses," he said.

And if there are obstacles the farmers cannot resolve on their own, the government will be responsible for removing such obstacles, Amari said. "We will be targeting the autumn of next year for finalizing the concrete substance of our policy," he said.

Amari was Japan's chief TPP negotiator. He is also Minister in charge of Economic Revitalization, Minister in charge of Total Reform of Social Security and Tax, and Minister of State for Economic and Fiscal Policy.

The Trans-Pacific Partnership began as a 2005 pact between Brunei, Chile, New Zealand and Singapore. The TPP called for reduction of all tariffs by 90% between member countries by January 1, 2006, and reduction to zero by last year.

After seven years of negotiation, Australia, Canada, Japan, Malaysia, Mexico, Peru, the United States, and Vietnam joined a broadened TPP, although the text of the agreement still needs to be signed and ratified according to the national procedures of each country concerned.

U.S. agricultural groups see strong potential to increase sales in Japan once the trade deal is ratified. Among some of the tariff changes, Japan is expected lower its tariffs on beef from 38.5% to 9% over time and cut the tariff on pork imports by 80%. Japan also will eliminate a 40% tariff on cheese imports as well.

Richard Smith is DTN's correspondent in Japan

(CC/CZ)

Copyright 2016 DTN/The Progressive Farmer. All rights reserved.