In its latest White Paper on International Economy and Trade 2009, the Japanese Ministry of Economy, Trade and Industry listed prevention of protectionism as one of its courses for “Domestic and foreign integrated economic measures” (Ministry of Economy, Trade and Industry 2009). With 153 member states in the World Trade Organization, formerly known as General Agreement on Tariffs and Trade, which is a multilateral institution that liberalizes trade, establishes trade agreements and solves trade disputes, one might think that protectionism should not be a problem in the 21st century (Gabler Verlag 2009b). Japan joined the General Agreement on Tariffs and Trade in 1955 and is still a member of the World Trade Organization today. However, the government of this nation still feels the necessity to state deterrence of protectionist measures in a paper which was only published in June 2009 (World Trade Organization 2009a). Thus, the question arises how important is protectionism for Japan nowadays. This question will be answered by explaining protectionist measures and looking at the historical development of such measures in Japan since 1945 in the agricultural sector. The agricultural sector is interesting since Japan's agricultural imports accounted to over $50 billion in 2008. After the United States of America and the European Union, Japan is the third largest importer of agricultural goods. Based on total calories consumed, Japan imports about 60 per cent of its food sources annually (United States Department of Agriculture Economic Research Service 2009a). By evaluating official government sources, the current situation is assessed and the effects of protectionist measures on imports by focusing on the agricultural sector will be elaborated.
Table of Contents
1. Introduction
2. Protectionism
3. Protectionist Measures
3.1 Import Quotas
3.2 Tariffs
4. Japan and Protectionism
4.1 Historic Development since 1945
4.1.1 Development of Import Quotas
4.1.2 Development of Tariffs
4.2 Current Situation
4.2.1 Milk Products
4.2.2 Grains
5. Effects
6. Importance of Protectionism for Japan
7. Conclusion
Research Objectives and Core Themes
This work examines the contemporary relevance of protectionism in Japan by analyzing the historical development and current application of trade restrictive measures within the agricultural sector. The central research question explores how significant protectionist policies remain for Japan despite its commitment to international trade organizations and global market integration.
- The theoretical foundations of protectionism and supply-demand equilibrium.
- Mechanisms of trade restriction, specifically import quotas, tariffs, and tariff-rate quotas.
- The historical evolution of Japanese protectionist policies in agriculture post-1945.
- The impact of protectionism on domestic and international markets, including trade disputes.
- The influence of domestic political interest groups, such as agricultural cooperatives, on national trade policy.
Excerpt from the Book
3.1 Import Quotas
An import quota is a non-tariff barrier, which is a measure that directly lowers the quantity of imported goods (Lipsey and Chrystal, 2007: 632). It is defined as “a limit on the amount of a good that can be imported” (Sheffrin and O'Sullivan 2005: 781). Absolute quotas limit the amount of imported goods to an exact level during a specified time span. Occasionally these quotas are set internationally and thus control all imports, while other times they are only imposed against individual countries (Suranovic 2006).
Since the number of goods produced abroad is restricted, the equilibrium moves closer to the price that would exist without international trade (Mankiw and Taylor 2006: 171). Since the market price of imported goods is increased, more domestically produced goods are sold while the number of goods produced abroad is lessened on the market.
Summary of Chapters
1. Introduction: Introduces the research context regarding Japan's trade policy and the goal to analyze protectionism in the Japanese agricultural sector.
2. Protectionism: Explains the basic economic models of supply and demand in international trade and defines the concept of protectionism as a policy to foster domestic industries.
3. Protectionist Measures: Details specific tools used to restrict trade, including the definitions and functions of import quotas, tariffs, and their combinations.
4. Japan and Protectionism: Evaluates the historical timeline of Japanese protectionist policies since 1945 and assesses the current regulatory environment regarding imports.
5. Effects: Discusses the broader consequences of protectionism, such as trade frictions, impacts on national income, and WTO-related disputes.
6. Importance of Protectionism for Japan: Analyzes the political significance of the agricultural sector and the influence of powerful interest groups on maintaining protectionist measures.
7. Conclusion: Summarizes findings, noting that while measures have decreased, protectionism remains a vital and enduring tool in Japanese policy.
Keywords
Protectionism, Japan, Agriculture, Import Quotas, Tariffs, Tariff-rate quotas, International Trade, World Trade Organization, Food security, Economic policy, Nokyo, Market access, Trade disputes, Trade liberalization, Agricultural cooperatives.
Frequently Asked Questions
What is the primary focus of this publication?
This work provides an analytical overview of the extent and importance of protectionist trade policies currently utilized by Japan, with a specialized focus on the agricultural sector.
Which core thematic areas are addressed?
The core themes include the definition of trade barriers, the historical context of Japan's economic policy post-1945, the role of international trade organizations, and the influence of domestic lobbying on trade protection.
What is the central research question?
The central question investigates how important protectionism remains for Japan in the 21st century, despite its membership in the WTO and the global trend toward trade liberalization.
Which research methods are employed?
The study relies on an evaluation of official government sources, international trade reports, and academic economic literature to assess the current trade situation and historical developments.
What topics are discussed in the main chapters?
The main chapters cover the theoretical mechanics of import quotas and tariffs, the transition of Japanese trade policy since World War II, and the specific impact of these measures on goods like milk and grains.
Which keywords define this work?
Key terms include protectionism, Japanese agricultural sector, tariff-rate quotas, World Trade Organization, and market access.
How did historical events influence Japan's protectionism?
Post-war policies, such as the Yoshida Doctrine, prioritized economic recovery through the restriction of foreign competition, which set the foundation for the long-term support of domestic agriculture.
What is the role of the Nokyo in this context?
The Nokyo, or the Central Union of Agricultural Cooperatives, is identified as a highly influential interest group that has historically lobbied to maintain price supports and protectionist barriers for Japanese farmers.
- Quote paper
- Remi Bauer (Author), 2009, Protectionist Measures within the Japanese Agricultural Sector, Munich, GRIN Verlag, https://www.grin.com/document/266435
