According to a report from the Wall Street Journal:
"Just as France exports fine wine, backers of Mr. Abe's plan hope Japan will become world famous for its painstakingly cultivated fruit, rice, beef and sake.
For decades Japan's agriculture sector has been protected by high tariffs.Figures from the Organization for Economic Cooperation and Development show that Japanese farmers now rely on government support for 56% of their total receipts, compared with just 7% in the U.S. and 19% in the European Union.
Mr. Abe now appears willing to overturn the long-cozy relationship between farmers and politicians. As part of his economic program, he is looking to slash import tariffs as part of his commitment to a U.S.-led trade pact for Asia known as the Trans-Pacific Partnership. That could provide a big boost for Japan's big industrial exporters. But the partnership could also provide opportunities for food importers, attracted by Japanese retail prices that are more than double the global average for potatoes and three times higher for apples.
To compensate for the domestic industry's potential loss of market share, Mr. Abe wants Japanese farmers to look abroad. He is aiming to have agriculture exports, which currently account for just 16% of total output, double by 2020. While some items like high-quality beef and rice have found buyers in overseas markets, overall farm-product exports have been flat since 2006, and amount to just one-eighth of those of Italy, a major global exporter of high-end food products.
"Just as France exports fine wine, backers of Mr. Abe's plan hope Japan will become world famous for its painstakingly cultivated fruit, rice, beef and sake.
For decades Japan's agriculture sector has been protected by high tariffs.Figures from the Organization for Economic Cooperation and Development show that Japanese farmers now rely on government support for 56% of their total receipts, compared with just 7% in the U.S. and 19% in the European Union.
Mr. Abe now appears willing to overturn the long-cozy relationship between farmers and politicians. As part of his economic program, he is looking to slash import tariffs as part of his commitment to a U.S.-led trade pact for Asia known as the Trans-Pacific Partnership. That could provide a big boost for Japan's big industrial exporters. But the partnership could also provide opportunities for food importers, attracted by Japanese retail prices that are more than double the global average for potatoes and three times higher for apples.
To compensate for the domestic industry's potential loss of market share, Mr. Abe wants Japanese farmers to look abroad. He is aiming to have agriculture exports, which currently account for just 16% of total output, double by 2020. While some items like high-quality beef and rice have found buyers in overseas markets, overall farm-product exports have been flat since 2006, and amount to just one-eighth of those of Italy, a major global exporter of high-end food products.
In addition, the government places a high importance on improving exports because the domestic market is shrinking. Japan's population is expected to fall by more than 20% to less than 100 million people by 2050, according to official estimates.
The export drive, which was previously restricted to a small band of farmers willing to forego domestic subsidies so they could compete abroad, is now gathering traction with some of Japan's biggest financial houses and global trading firms".
