Japan govt says determined to protect farmers from free trade

16 January, 2006

TOKYO (AFX) - Japan plans to resist pressure from major food exporting nations such as the United States to reduce protection for its farmers in global trade talks, its agriculture minister said.

'The rest of the negotiations under the WTO (Doha Round) to be sealed by April 30 will be very, very serious,' Shoichi Nakagawa said after returning from separate talks with Mexican President Vincente Fox and US trade representative Rob Portman on a trip to the two countries.

'Mr Portman told me very clearly that the US focus is now on market access,' or the reduction of import tariffs on agricultural products levied by Japan and other countries, Nakagawa told reporters.

In the WTO ministerial meeting in Hong Kong last month, talks were heavily focused on cutting domestic subsidies to farmers and on setting a deadline for ending export subsidies, which are widely used by European Union members.

Nakagawa believes the talks may now get tougher for Japan with a focus on possible import tariff caps and whether to change the 'sensitive products' category, such as rice for Japan, which enjoy special exemptions.

'I had an impression that ground battles will kick off from now on,' Nakagawa said.

'Mr Portman seemed very firm in demanding Japan open up its agricultural market. Then I thought, I have to be well prepared not to give in at the negotiation table,' he said.

Japan wants freer access to the global market in terms of trade in industrial goods and services, but is known for its strong support for its farming sector, chiefly through high tariff duties.

Japan protects its rice farmers with tariffs of up to 700 pct, claiming they occupy a special place in Japanese culture.