Agricultural Protectionismin East AsiaEcon 3313BInstructor: HanThaís Tambara

Agricultural Protectionismin East Asia

• Started in XX century

• High price = depencence

• Promotion of rice production

• 1930: Japan was self sufficient in rice

Self-Sufficiency Ratio

Agricultural Protecionism in East Asia• 1950: Post War reconstruction

• Neo Confuncian values

• Government intervention

• Human capital

• 1960: rise of national prices + urban population

• 1970: demand for assistance = price support and protection

from import

Farm Policies in East Asia

• Food security

• Equalize levels

Political interests• Government budget

• Japan Agricultural Group

Avaiable Options• To boost food self-sufficiency through long term contracts

• TPP Agremeent

Trans Pacific Partnership Agreement (TPP)• Multinational trade agreement

• 21st issues: investments, competition policy, service and

movement of service providers, etc

• 12 countries: U.S., Japan, Canada, Mexico, Australia, New

Zealand, Singapore, Vietnam, Malasya, Peru, Chile and Brunei

• World’s biggest free trade zone

Trans Pacific Partnership Agreement (TPP)Pros• Correct commercial imperfections

• Improve diplomatic abilities

• Option to leave the rice as exception

Cons• Already exists international mechanism such as GATT

• Give in to U.S. pressure

Questions• What was the price of rice in Japan in 2014 ?

The price of rice in Japan in 2014 was US$ 24 per pound.*• What are the cons of rice protection in Japan ?

The Japaneses has to pay almost 10 times more than the market price in the product. The consumption of rice is decreasing in the long of the years because of the high price . The small producers are being affected by the withhold of investments.• Why the government is still protecting the national rice in Japan ?

There are to many interests such as lobbysts and cooperatives which earn benefits from the protection.*http://www.nytimes.com/2014/01/10/business/international/japanese-begin-to-question-rices-sacred-place.html?_r=3

Sources• http://ac.els-cdn.com/0306919283900532/1-s2.0-030691928

3900532-main.pdf?_tid=9ad174d8-dbde-11e4-94b6-00000aab0f26&acdnat=1428271165_5b79329e59880455c0c05d3625ccfc45

• http://www.maff.go.jp/e/pdf/fy2006_rep.pdf• http://johnbutters.org/2013/07/30/real-gdp-growth-in-japan/