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GTAP Resource #1133

"A General Equilibrium Analysis of Japan's Rice Tariffication"
by Kagatsume, Masaru, Ching-Cheng Chang and Chia-Hsuan Wu

On 1 April 1999, the Japanese government introduced a tariffication system for rice imports for the 1999 and 2000 fiscal years. Annual market access increases in 1999 and 2000 were lowered from 0.8 percent of base period consumption to 0.4 percent and therefore the previously expected level of imports in 2000 was reduced by 76,000 tons.The tariff for imports within the minimum access quota is zero, but the Uruguay Round Agreement on Agriculture (URAA) allows Japan to add a markup to within-quota imported rice to up to 292 yen/kg when it enters Japan. The markup remains a part of Japan's new import rules. For imports above the minimum access amount, Japan has specified a tariff of 351.17 yen/kg in 1999 and 341 yen/kg in 2000.
The import tariff announced by Japan is prohibitive, consistent with its policy of protecting its domestic rice market because of the strong domestic, political, economic, environmental and social sensitivity of rice. However, as the next WTO round of multilateral negotiations begins, tariff-rate quota and tariff levels for rice into Japan will become an important issue.
This article presents an economy-wide analysis of the impact of alternative tariff-rate quota increases and tariff level reduction, including in-quota duties, for Japan's domestic market, the international rice market, resource use and other macro-economic aggregates. A tariff-Rate Quota (TRQ) model within GTAP by Elbehri, et al. (2000) is applied to an analysis of partial multilateral rice liberalization.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
2002 Conference Paper
Status: Published
By/In: Presented at the 5th Annual Conference on Global Economic Analysis, Taipei, Taiwan
Date: 2002
Created: Bacou, M. (7/2/2002)
Updated: Bacou, M. (7/16/2002)
Visits: 5,149
- Domestic policy analysis
- Agricultural policies

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