Japan has begun lowering support for its agriculture sector since the
1980s. The US beginning the first objector to the protection provided to
Japan’s agricultural sector. In Japan for every single dollar of agriculture
production, 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 internal
barriers, which include sale restriction and use of farmland; also preferential
tax structures on farmers tend to put off older folks from leaving or corporate
farms from entering the farming sector in many areas.
Japan’s policy and made a vague understanding of future customer
outcomes. In Japan the people pay almost 6 times the world price for their five
protected products including rice. The people spend approx. 14% of their income
on food, compared to 7% in the US. When Japan looks for additional fiscal resources,
an elimination of agricultural subsidies, combined with a decrease of tariffs
on agricultural products, would take pressure off the budget and also protect
households from elevated prices.
imports have been consistently rising in recent years and are expected to
continue to grow at a high rate over the coming decades. Currently, China is
importing 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-sufficiency
in meat and dairy products has been declining, and, as a result, imports of
these product categories have been increasing (to US$9.6 billion). In recent
years the mix of agricultural imports has been expanding and diversifying into
new commodities. In particular, China’s purchases of fruits, vegetables, nuts,
(US$6.4 billion) and sugar (US$2.3. billion) have accelerated. China’s market
has become a focus of global agricultural expansion, and yet China’s government
systematically favors the interests of domestic producers by moderating import
demands through various protectionist policies, which sends a confusing signal
to 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 a
rate of approximately 5% of overall consumption, whereas high tariffs of 65%
are charged on imports above the quota. China’s record in protecting its basic
food security is indeed impressive for a country of its size and limited
resource endowment. Over the past three decades, China’s government has been
successfully pursuing food security by maintaining self-sufficiency. China’s
government uses reserves under its direct or indirect control to stabilize
prices for staple food commodities and ensure profitability of domestic
producers. It also widely supports modernization of traditional,
labor-intensive, and low-productivity methods of farming through an extensive
system of subsidies, and maintains control over food imports and exports. These
policy tools ensure that China can meet domestic consumption demand with
domestically produced food, and minimize its dependence on global markets.
However, recent socioeconomic changes add extra complexity and pressure to
China’s food security situation and a growing dependence on the global food
system is already a part of the present-day reality.