U.S. Allows Japan to Exclude Rice in Trans-Pacific Partnership Negotiations

The U.S. has allowed Japan to exclude rice in Trans-Pacific Partnership (TPP) negotiations, but has asked the Japanese government to increase imports of U.S. rice, according to local sources. The Japanese government is struggling to keep Japanese rice competitive due to high production costs and declining consumption in Japan.

Currently, Japan provides minimum market access (MMA) of a total 770,000 tons rice import quota per year to some countries under World Trade Organization (WTO) obligations. However, rice imports above the quota carry a prohibitive import tariff of around 778% to protect local farmers. Japan is keen to join the TPP to boost the country’s economy, but has kept rice out of negotiations with other potential partners such as Australia.

The U.S. initially wanted Japan to abolish import tariffs on rice and other agricultural items as a part of TPP, but now wants Japan to exclude rice and some other agricultural products. In return, Japan has agreed to the U.S. demand to increase rice imports the U.S. in a new private import quota. Local sources say that this would lower competition for U.S. rice and other agricultural items in the Japanese market.

Source: oryza.com