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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/