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IPC Seminar Presentation Jiro Shiwaku 2004,5,17 Brussels.

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Presentation on theme: "IPC Seminar Presentation Jiro Shiwaku 2004,5,17 Brussels."— Presentation transcript:

1 IPC Seminar Presentation Jiro Shiwaku 2004,5,17 Brussels

2 Ⅰ Japan’s Position on the WTO agricultural ne gotiations 1 ) Importance of Multi-functionality of agriculture 2 ) Balanced commitments between Exporting and Importing countries This position was taken considering the fundamental background of Japanese agriculture and agricultural trade as well as dissatisfactory elements of the outcome of URAA

3 Ⅱ Fundamental Background of Japanese Agriculture and Agricultural Trade 1)Extreme low self supplying ratio for nations 120million population I) 40% in terms of calorie intake ii) less than 30% for grain sector as a whole iii) 35% for beef, 52% for pork 2)Contributing to the world agricultural trade through more than 60% of our food requirements on the global market 3 ) Little possibility to gain in the form of improved access commitments by our trading partners because of extreme imbalance between import and export in the farm sector

4 Ⅲ Dissatisfactory outcomes of URAA ; 1) Retention of legality for export restriction or prohibition in case of critical food shortage , while import restriction necessary to guard the production adjustment governmental measures become dead letter as a result of tariffication without exception 2 ) Continuous obligation to implement the increased minimum import commitment for nation ’ s life line farm product (rice) , even after the earlier than scheduled shift to tariffication in 1999, in spite of stringent reduction curtailment (more than 30% of paddy field ) 3 ) Watered down reduction commitments of export subsidies even lower than the itself weak commitments included in the Dunkel Draft in spite of the very trade distortive nature of these measures

5 It is paramountly essential for us not to repeat unhappay experience of URAA which represented unbalanced commitments between importing and exporting countries and unrealistically severe burdens for such country as Japan contributing to the stable and progressive developments of global farm trade through the dependence of more than 60% of nation ’ s food requirement on importation from abroad.

6 Ⅳ 3 Pillars of commitments of DDA 1 Market access 1 ) Tariff reduction formula Original preference : UR formula Ready to discuss either of the blended formula or the tiered formula , subject to the satisfactory resolve of the capping of tariffs as well as the across the board mandatory expansion of tariff rate quotas 2 ) Blended formula It must give sufficient flexibility for sensitive items , namely It must qualify as a genuinely “ blended “formula by a balanced combination between UR and Swiss formulas

7 3 ) Tiered formula Its substance must be clarified further, but we are ready to explore its appropriateness as long as the capping of tariffs and the mandatory across the board increase of tariff rate quotas could be avoided This formula must be assessed on the basis of to what extent it could accommodate the sensitivities of various products 4 ) Tariff rate quota increase It is important to take into account the difference of respective size of the current tariff rate quota The mandatory across the board increase of tariff rate quota does not ensure the fair treatment

8 2 Domestic support 1 ) Amber box reduction on the basis of comprehensive AMS 2 ) Blue box must be maintained to facilitate policy reform 3 ) Green box should not be modified in view of non or minimal distortive nature of this category of measures 3 Export competition 1 ) Export subsidies should be substantially reduced with the commitment of their total elimination by the date certain on the basis of parallel treatment with similar export incentive measures as export credit,state trading entities and subsidiing element of food aid 2 ) Appraisal for EU ’ s bold initiative on this question

9 Ⅴ Agricultural Policy Reform , WTO round and FTA 1 Japan’s undertaking of Agricultural Policy Reform From product specific price support to direct income payments to eligible farms 2 The motivation of agricultural policy reform to cope with the WTO negotiations Until the Cancun ministerial, DDA has been excerting the reasonably effective tention to a policy reform deliberation Importance of sufficiently convincing external inducement from the WTO proceedings Even after recent EU’s initiative, the prospect of reaching framework agreement by July is still not clear

10 3 Elements of agricultural policy reform 1)Shift to direct income payments to eligible farms - Little disputes among stakeholders and political parties 2)Eligibility of target farms 3)Size of payments and financial resources - No possibility of additional budgetary allocation to the Ministry of Agriculture - Room for the transform of money from the existing budgetary resources of the Ministry, very small

11 4 Proliferation of FTA 1) For Japan,the most ardent supporter of multilateralism, no way to counter the proliferation of FTAs by embarking upon exploration of this channel - Completed with Singapore (2001) and Mexico(2004) - Under negotiations with Korea, Thailand , Malaysia and Philippines 2)Still our basic position is FTA is a complimentary devices to WTO multilateral regime 3) Be careful to the vicious cycle of proliferation of FTAs giving rise to the less enthusiastic attitude towards the WTO and in turn further rushing to the rather easy exploration of FTA with barely complying with the Article 24 of GATT 1994

12 5 Revitalization of WTO agricultural negotiations urgently needed 6 At the same time very important for the substance of the framework well balanced and not excessively demanding - In order for farmers to be able to cope with - In order to respond the consumers or city dwellers concerns about the food security and safety and environmentary friendly rural area

13 Ⅵ Market access of non- agricultural products 1 Recognizing difficulty for all participants’ commitments to the sectoral approach, we are prepared to explore the idea of critical mass. 2 We can not accept sectoral approach on the fishery and forestry products 3 Parallel and simultenuous discussion should be undertaken on the rule for participation and selection of eligible sectors

14 Ⅶ Singapore Issues 1 ) In view of the close relationship of these issues with trade, WTO is an appropriate forum to proceed discussion of these questions 2 ) Early start of negotiations should be undertaken on the trade facilitation, on which little dissenting opinion exists 3 ) For the remaining items for which the concensus for the immediate start of the negotiations coul not be warranted, discussion in order to take up as future candidate of WTO agenda might be continued

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