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HOME  > Past issues  > 2012 September 5 - 11  > Agriculture in subordination to US - II: beef and citrus imports liberalized
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2012 September 5 - 11 [AGRICULTURE]

Agriculture in subordination to US - II: beef and citrus imports liberalized

September 5, 2012
During the 1980s, some agricultural items, while selected by the government as items to expand domestic production, had to suffer under the pressure for trade liberalization as the United States shifted its focus to exports of high value-added products, such as beef and citrus.

On May 25, 1988, Japanese Communist Party House of Councilors member Shimoda Kyoko stated in a written inquiry submitted to the government, “The self-sufficiency rate of beef declined to 69%, and fruit farmers are facing production cutbacks and a drastic plunge in prices. This is the true condition of livestock and fruit products, which had been touted as ‘selective expansion’ items.”

3 rounds of talks

From 1977 to 1988, the Japanese and U.S. governments had 3 rounds of beef and citrus trade talks, which were concluded on June 19, 1988.

They agreed on Japan’s import quotas in the first round, on expansion of the quotas in the second round, and then on the liberalization of beef and citrus imports in the final round.

The U.S. increasingly pressed Japan to liberalize imports at that time as it was suffering from accumulated trade deficits.

In 1977, the U.S. trade deficit reached 30 billion dollars while Japan’s trade surplus was 10 billion dollars. Against this backdrop, the two countries started trade negotiations under the pretext of bilateral economic adjustment. Japan’s regulation policies on agricultural imports were attacked at the negotiation table.

Treaty forces Japan to defend the dollar

The accumulation of U.S. trade deficits leads to a decline in the creditability of the dollar. The Japan-U.S. Security Treaty obliges Japan to cooperate to defend the dollar.

Yoshioka Yutaka, former economic bureau director of the Ministry of Agriculture, Forestry, and Fisheries, wrote a column titled, “The security treaty and beef trade friction,” in 1985 when he was the chair of the Japan International Agricultural Council.

Regarding Article 2 of the Japan-U.S. Security Treaty which stipulates economic cooperation, he said, “To put it another way, the article is saying that Japan and the U.S. have to negotiate on the beef trade and move in the direction of market liberalization.”

>Agriculture in subordination to US - I: Road to more imports of US farm surplus

>Agriculture in subordination to US - III: Door opened for further rice imports

>Agriculture in subordination to US - IV: Ill effects expected from TPP

>Agriculture in subordination to US - V: Food sovereignty a must
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