[Text/Observer Network Wang Yi] The 25% tariff that the United States imposed on imports of key automotive parts officially took effect on May 3, and the deadlock in the tariff negotiations between Japan, a traditional automobile industry country severely affected by this, and the United States remains unresolved. Recently, there have been reports that the Japanese government plans to expand the import of American rice as a bargaining chip in the negotiations to seek relief from the U.S. for car tariffs.
However, this idea has met with strong opposition from Japanese farmers and within the ruling Liberal Democratic Party (LDP). According to a report by the Nikkei Asian Review on June 6, a resolution by the LDP's Food Security Committee stated that the idea of sacrificing agricultural, forestry, and fishery products to reduce car tariffs is "completely unacceptable."
A self-employed member of the LDP representing farmers also issued a warning, stating that "if the LDP government dares to touch rice, they will collapse."
Exchange more imported American rice for reduced car tariffs
Trump previously publicly complained about Japan's 700% tariff on American rice, repeatedly stating his hope that Japan would further open its market, relax car safety regulations, subsidies, rice import quotas, and other non-tariff barriers. The Japan Times reported on April 23 that this claim may stem from data from the Ministry of Agriculture, Forestry, and Fisheries, which was based on international rice prices from 1999 to 2001, showing that Japan's rice tariff was approximately 778%. However, recalculation using current data significantly lowered the tariff rate to around 227%.
Although Japanese officials are puzzled by Trump's statement, they have had to consider making changes under U.S. tariff pressure.
The Asahi Shimbun reported on April 23 that sources said during the first round of tariff talks between Japan and the U.S., American officials expressed interest in exporting more agricultural products to Japan, such as meat, citrus fruits, potatoes, and rice. The Nikkei Asian Review learned in April that U.S. negotiators also cited a trade barrier report released by the Office of the United States Trade Representative in March, questioning the strict and opaque regulation of Japan's rice import and distribution system, which limits the ability of American exporters to effectively reach Japanese consumers.
Sources revealed that the Shibaakage administration then stated that Japan would consider importing more American rice as a card to be used in tariff negotiations. Informants told Kyodo News that one of Japan's government plans is to increase the volume of tariff-free rice imported from the United States from the current 350,000 tons to 410,000 tons.
On May 1 local time, the second round of tariff negotiations between Japan and the U.S. were held. Visual China
According to the informant, in order to protect the domestic rice industry, Japan imposes a limit on the amount of duty-free rice imported each year, and the government levies a tariff of 341 yen per kilogram (approximately 17.13 yuan RMB) on imported rice exceeding the annual tax-free quota.
Currently, Japan imports approximately 770,000 tons of duty-free rice annually from all over the world, with American rice receiving the largest share of the quota, accounting for about 45%.
Some Japanese government officials who support importing more American rice told the Asahi Shimbun that at a time when there is growing public demand for more and cheaper rice imports, this move can help stabilize domestic supply.
Since last summer, due to supply shortages, the price of Japanese rice has continued to soar. Although the Japanese government has released several rounds of rice reserves to ease market pressure, the price has remained high. Food security issues were also one of the reasons for the resignation of former Prime Minister Fumio Kishida.
The Ministry of Agriculture, Forestry, and Fisheries stated at the end of last year that it expects Japan's rice production to reach 6.83 million tons in 2024. Americans' staple food is not rice; more than half of the nearly ten million tons of rice they produce each year is exported.
"Protecting cars is naturally justified, but agriculture should not be off-limits"
The Nikkei Asian Review analyzed that Japan has traditionally been reluctant to open up the rice market because it is part of maintaining price stability and protecting domestic farmers. Moreover, discussions about expanding the import of American rice before the summer Senate election may provoke strong opposition from voters.
On April 23 local time, California-imported rice displayed in a supermarket in Tokyo, Japan. Visual China
The Asahi Shimbun pointed out that farmers are the traditional support base of the LDP, and Japan has long regarded rice as a "refuge," imposing restrictions on its import volume. The Nikkei Asian Review noted that some LDP members now worry that a surge in rice imports could cause long-term damage to farmers' livelihoods and lead to a decline in domestic production.
LDP Secretary-General Hiroyuki Morioka submitted a resolution to Agriculture, Forestry, and Fisheries Minister Takumi Kamijo on April 25, indicating a willingness to expand imports of American corn and soybeans in exchange for the U.S. reducing tariffs, but Japan's staple food rice is the bottom line. The Nikkei Asian Review cited data showing that as of 2020, about 700,000 farm management organizations in Japan produced rice, while only 50,000 producers grew soybeans, and even fewer grew corn.
The report stated that LDP members representing farmers are committed to increasing Japan's self-sufficiency in rice to ensure stable food supplies in emergencies.
Kamijo also expressed caution about using imported rice to address domestic shortages. He called on the public to consider whether establishing a system heavily reliant on the U.S. and foreign countries for a staple food that Japan can achieve self-sufficiency in aligns with Japan's national interests.
The Nikkei Asian Review noted that similar debates have been ongoing for a long time, and Japan has maintained wartime control over rice distribution and pricing until switching to a reserve strategy in 1995. However, this failed to prevent the supply challenges that persisted since last year. Legislators who rely on agricultural sector voters hope to increase government spending under the pretext of food security, while others oppose importing more American rice.
An anonymous person with experience in Japan's cabinet said, "It is natural for Japan to prioritize protecting the automobile industry, and agriculture should not be considered a taboo area."
This article is an exclusive piece from the Observer Network and cannot be reprinted without permission.
Original text: https://www.toutiao.com/article/7501219720398471699/
Disclaimer: This article solely represents the author's views, and you are welcome to express your attitude by clicking the [Agree/Disagree] buttons below.