Video #17 - Japan: Farmers Face Global Competition
Tuesday, January 10, 2006BACKGROUND INFORMATION
For the past several years, Japan's average yearly temperature has been rising. For the farming industry of Izumo this has meant much hotter summers and a changing growing season-resulting in lower crop yields and product quality. Most affected are the rice growers. Hiroyuki Nagaoka, of Izumo's Agricultural and Forestry Promotion Division, says the industry is at a loss as to what to do. In 2000, Izymo produced 4,034 metric tons of rice, with approximately 47.2 percent of it classified as number one grade. In 2001, those numbers fell to 3,716 metric tones produced with only 34.1 percent of the crop in the top grade. (Rice is very temperature sensitive, and when it gets too hot too fast, its quality suffers considerably).
The Japanese Agriculture association, (JA), a private, non-governmental group, has hired Osamu Murakami to teach new methods of farm management to local farmers. He says that in order for farming to have a future in Japan, it must change. For example, improved techniques, good soil and warmer winters have made grape-growing more productive. However, the lack of cold temperatures will eventually affect the survival of insects in the area and therefore, grape production.
Precipitation totals have also endangered crops. The typhoon season now begins in June rather than in August. The extra two months of strong winds and abnormal rain patterns have affected crop production and made growing seasons for different crops overlap. This has pitted crops against each other in the market place and lowered prices.
Additionally, farmers say their biggest problem is shrinking Japanese demand for local crops. People in Japan now have a more varied diet, eating bread or pasta in place of rice. The resulting glut of rice on the market has forced the government to restrict the amount that can be grown. Japan is among the world's biggest food importers, relying on imports for 60% of its food. The consensus of opinion is that if Japanese people don't stop relying on foreign foods, Japanese farming could collapse as soon as ten years from now. In 1969, the Japanese ate 120 kg of rice per year (per capita). Now consumption is below 60 kg.
Meanwhile, there is growing international pressure for Japan to limit its tariffs on agricultural goods. Japan maintains some of the highest agriculture tariffs in the world, with rice protected by tariffs of up to 406 percent. In advance of the World Trade Organization's ministerial meeting in Cancun, Mexico in Fall, 2003, Japanese Agriculture MinisterYoshiyuki Kamei met with U.S. Agriculture Secretary Ann Veneman in a bid to exempt such products from any further liberalization. Japan wants average reductions in duties of 36 percent, with a minimum reduction of 15 percent.
But the U.S. is insisting that Japan lower its tariffs more substantially. One U.S. official said, "We pointed out to them that U.S. total agriculture exports to Japan are $10 billion (annually) and Japan exports $45 billion worth of cars to the U.S. at a 2.5 percent tariff." Agriculture trade has been identified as the most important and toughest part of the Doha Round trade talks, which began at the end of 2001. Major disagreements between the richer and poorer countries threaten the possibility for a final agreement by the agreed date of January 1, 2005.
The US and Australia lead a coalition of nations that expect cheaper food prices if protectionist trade taxes are limited. But Japan worries about losing its rice self-sufficiency, just as the United States worries about its dependence on foreign oil. According to Kamei, "...many countries that cannot be as competitive (in agricultural production), including many developing countries, would find it very difficult. Eventually, the world will depend entirely on the agriculture of this handful of nations for their entire food supply."
SOURCES
These kinds of disagreements led the Cancun WTO conference to break down. Efforts to bring parties together again are now underway.
"Japan unveils vague proposal to U.S.-EU farm trade plan." Kyodo News, August 20, 2003
"Japan urges flexibility on farm tariffs." Pacific Business News, September 2, 2003. Cowan, Richard; "US, Japan farm ministers joust over import tariffs." Worldwide Reuters, September 3, 2203.
LESSON PLAN
Goerzen, Matt; "Climate Impedes Japanese Farming." The Foreigner-Japan 2003. Kolesnikov-Jessop, Sonia; "Analysis: Asia pushes own trade envelop." United Press International, September 2, 2003. washingtontimes.com
GRADE LEVEL/SUBJECT:
10-12 grade Economics, International Relations, World History, Geography, International Baccalaureate Programs (IB), Current Events.
PURPOSE:
To present activities to be used in a variety of classroom situations in order to enhance student understanding of the Asian economy and its significance globally.
OBJECTIVES:
Students will be able to:
- Describe the history of Japanese farming.
- Explain the role of the World Trade Association on international farming issues.
- Evaluate the use of subsidies, tariffs or the lack thereof on international farming.
- Analyze the events of the Cancun WTO conference of September, 2003.
- Forecast the future of Japanese farming.
MATERIALS:
- Background information provided.
- Resources on Japan available at your school's Media Center and the Public Library System in your area.
- Background information available through Internet "search engines".
ACTIVITIES:
May be assigned as group activities or as individual tasks. They may also be designed as preparation for related presentations either by individuals or groups.
- Use charts and graphs to illustrate the history of farm products in Japan.
- Simulate a WTO ministers meeting including representatives from different parts of the world. (Allow cooperative learning groups to take the role of staff support to research the concerns of their nations at the conference.) Draft agreements which reflect the real issues at hand.
- After researching the issues faced by the WTO Doha Round representatives, make recommendations for possible solutions.
EVALUATION:
Individual assignments should be graded by the teacher using established criteria.
Group activities, presentations and projects may be evaluated by teachers and students using the following criteria and scale: Content 1 = Superior (A) Creativity 2 = Excellent (B) Clarity 3 = Good (C) 4 = Fair (D) 5 = Poor (F)
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