A study of Japan’s protection for selected agricultural commodities in the period between 1972 and 1977

Abstract

This thesis looks at the level of protection afforded to Japan's agricultural industry (selected commodities), with respect to the 'self-sufficiency in foodstuffs' objective and the reliance on imported feedgrains.

Specifically, this study incorporates non-tariff barriers (NTBs) into the tariff structure in measuring the level of protection. 'Effective protection' or 'protection of the value-added in the production process' is measured with respect to all barriers placed on the final product and inputs (feedstuffs in this case).

Japan's effective protection for the beef, pork, poultry and dairy products sectors for the period between 1972 and 1977 provides the basis for analysis.

The effective protection afforded to the beef and dairy products sectors was found to be extremely high with protection rates of 300 percent and 600 percent (average over the period) respectively; while the pork and poultry sectors were negatively protected with rates of 17 and 39 percent respectively.

Even though the protection to the beef and dairy products sectors was high, Japan's objective of self-sufficiency for these two sectors was only possible through the high-price-structured stabilization schemes and induced high-price/low-demand situations. The self-sufficiency rate for these sectors can only be maintained with continued protection.

Japan's high level of protection for its agricultural industry especially for the beef and dairy products sectors, presents a barrier to New Zealand exports. Although New Zealand exports are competitive, gaining long-term stable access to Japanese markets is impeded by the presence of this high level of protection.