Japan diversifying into new commodities. In particular, China’s

Japan has begun lowering support for its agriculture sector since the1980s. The US beginning the first objector to the protection provided toJapan’s agricultural sector. In Japan for every single dollar of agricultureproduction, 56 cents of subsidies are given to farmers by the Japanese government.The US and EU provide just 7 percent and 20 percent for every dollar.

Japan has a 1.25% GDP spending on subsidies for the agriculture sector,which includes suppliers and producers. Also, there lie numerous internalbarriers, which include sale restriction and use of farmland; also preferentialtax structures on farmers tend to put off older folks from leaving or corporatefarms from entering the farming sector in many areas.Japan’s policy and made a vague understanding of future customeroutcomes. In Japan the people pay almost 6 times the world price for their fiveprotected products including rice. The people spend approx.

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14% of their incomeon food, compared to 7% in the US. When Japan looks for additional fiscal resources,an elimination of agricultural subsidies, combined with a decrease of tariffson agricultural products, would take pressure off the budget and also protecthouseholds from elevated prices.China’s foodimports have been consistently rising in recent years and are expected tocontinue to grow at a high rate over the coming decades. Currently, China isimporting agricultural products from countries such as Brazil, Australia,Canada, New Zealand, and Argentina, yet the US is China’s leading supplier,accounting for over 24% of China’s imports by value.

China’s self-sufficiencyin meat and dairy products has been declining, and, as a result, imports ofthese product categories have been increasing (to US$9.6 billion). In recentyears the mix of agricultural imports has been expanding and diversifying intonew commodities. In particular, China’s purchases of fruits, vegetables, nuts,(US$6.4 billion) and sugar (US$2.3. billion) have accelerated. China’s markethas become a focus of global agricultural expansion, and yet China’s governmentsystematically favors the interests of domestic producers by moderating importdemands through various protectionist policies, which sends a confusing signalto China’s international partners.

China’s regulates imports of wheat, rice,corn, and soybeans through a system of tariff rate quotas. Low tariffs of 1%are applied on imports up to the quota amount, which is adjusted yearly at arate of approximately 5% of overall consumption, whereas high tariffs of 65%are charged on imports above the quota. China’s record in protecting its basicfood security is indeed impressive for a country of its size and limitedresource endowment.

Over the past three decades, China’s government has beensuccessfully pursuing food security by maintaining self-sufficiency. China’sgovernment uses reserves under its direct or indirect control to stabilizeprices for staple food commodities and ensure profitability of domesticproducers. It also widely supports modernization of traditional,labor-intensive, and low-productivity methods of farming through an extensivesystem of subsidies, and maintains control over food imports and exports. Thesepolicy tools ensure that China can meet domestic consumption demand withdomestically produced food, and minimize its dependence on global markets.However, recent socioeconomic changes add extra complexity and pressure toChina’s food security situation and a growing dependence on the global foodsystem is already a part of the present-day reality.

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