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The Reform of Japan’s Supporting Policy for Rice Production and Relevant Revelations(No.105, 2017)


By Ye Xingqin, Research Department of Rural Economy, DRC

Research report No.105, 2017 (Total 5180) 2017-8-30

Abstract: Before the entry of the WTO, Japan achieved relatively high rate of rice self-sufficiency through border protection measures and price support policy, which promoted the balance of income between workers and farmers, but also delayed the progress of scale development of rice production, increased the financial burden and that of the consumers, and invited severe criticism in international trade negotiations. In response to the challenges after entry into the WTO, Japan has carried out a series of reforms of agricultural support policies including the support to rice production, which, in terms of border protection measures, have shifted the focus from administrative control to tariffication. With regard to domestic support, the government policy is changing from price support to income support. According to the plan, the government will abolish rice production restrictions and relevant subsidies in 2018, in order to realize market-oriented production bolstered by the market-based price and circulation reform at home. As China is in the window period providing an opportunity for us to make adjustment of the minimum purchase price policy of rice and wheat, we need to extricate ourselves from the difficult circumstances resulting from the minimum purchase price policy of rice and wheat in different stages, grasp the balance of supporting policies between competing products and resources, and devote greater efforts in enhancing China’s international competitiveness.

Key words: border protection measures, domestic support, rice, Japan