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Rice: Sacred Cow? Or Negotiable Item? : Japan Imperils Trade Talks With Hard-Line Stand

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The Japanese insistence that rice is the symbol of their nation’s heart and soul has made the grain a staple not only of the nation’s tables, but also of its contentious trade relations. Tokyo’s refusal to lift a controversial ban on rice imports poses a major obstacle to winding up current multilateral trade talks.

The United States wants the ban abandoned by the end of the year. Japanese Agriculture Minister Tomio Yamamoto says he’s prepared to resign rather than liberalize rice imports. Japan’s rice farmers, he declared recently, are “special” and need protection.

It’s an old, familiar argument from the Japanese: Rice cultivation over thousands of years has become the cornerstone for “Yamato-damashi,” or Japan’s spirit, and of the nation’s culture. Being self-sufficient in rice also is important to the nation’s food security, they say.

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Myth notwithstanding, rice is more sacred to the politics than to the culture of modern Japan. The import ban, designed originally to keep Japan self-sufficient in rice, has evolved into a powerful tool in party politics. The ruling Liberal Democratic Party, beholden to rural agricultural voters, has long protected farmers with subsidies and the import ban.

The result: Artificially high rice prices. Japanese rice farmers, who earn most of their income off the farm, receive 8 to 10 times more for their grain than other rice producers around the world. Japanese consumers typically pay two to three times more than other consumers.

Twice since 1986, American rice producers have sought U.S. government help unsuccessfully to force the Japanese market open. The U.S. strategy instead has been to demand a revision of the rice ban as a condition to wrapping up the current round of the General Agreement on Tariffs and Trade talks.

Japan’s historical and spiritual justification for the rice ban doesn’t wear well in such international circles. But can the Japanese government change its position and still save face? In a consensus-driven society, recent, dramatic shifts in public attitude should help justify a change. Recent surveys indicate 65% to 70% of Japanese consumers favor some opening of the rice market.

Before Yamamoto took his hard-line stance, former Prime Minister Noboru Takeshita, who is considered the strongman of the LDP, hinted at studying a policy adjustment if public opinion changes. He also praised the opposition Komeito (Clean Government) Party, which was the first political group to the drop its opposition to foreign rice and suggest aid for Japanese rice farmers.

Japan already is our No. 1 foreign customer for agricultural exports. A liberalization of its rice ban would not result in a immediate deluge of foreign rice. It could provide the impetus for reallocation of farmlands to provide badly needed affordable housing and cheaper rice for Japanese consumers.

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That, indeed, would be a proud addition to their rice heritage.

Japan Rice Consumption Although consumption of rice in Japan has been declining, prices remain high because Japanese farmers are subsidized and protected by their government. Source: U.S. Department of Agriculture

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