How can non-trade concerns in agriculture be best safeguarded? Tetsuo USHIKUSA MAFF, Japan

1.Overview of Japanese Agriculture. (1) The largest net food importing country with micro-sized scale farming Trade of Foods Japan, US, EU Year 2004,Unit:billion $ ExportImportNet Import Japan US EU Scale of Farming Japan, US, EU Date: Japan-2003, US-2002, EU-2000 TCL (10,000ha) TCL per Person (ha) Farm scale per farmer (ha) Japan US37, EU12, * TCL; Total Cultivated Land

(2) Faced with major challenges or less (total population) 65 or over (farm household) 14 or less (farm household) 65 or over (total population) Abandoned land Cultivated land Abandoned land of which hilly and Mountains area Cultivated land

2. Important Non Trade Concerns for Japan Food Security Conservation of Land Fostering Water Resources Preservation of the National Environment Development of Favorable Landscapes Maintenance of Cultural Heritage Recreation/Relaxation Viability of Rural community

Non-trade concern Multifunctionality of Agriculture Food Security Preservation of the National Environment Other things Viability of Rural community Food safety, Animal protection, etc

Food Security Official opinion polls on trade of agricultural products (July,2000) Perception about future food supply in Japan Feel unease Dont feel unease Continuous decline of Japans Food self-sufficiency rate.

(2) Flood Prevention and other function of Agriculture function estimated value billions of yen Flood prevention3,498.8 River flow stabilization1,463.3 Groundwater recharge 53.7 Soil erosion(wash-off) prevention Landslide prevention Breakdown of organic waste 12.3 Climate amelioration 8.7 Restoration of body and mind 2,375.8 Total agricultural Production value (2002) 8,926.1 Source: Science Council of Japan Nov.2001 Report

Landscape of farmland

Loss of permeability after abandoned

Landslide in abandoned paddy fields

Current system Measures in principle for all farmers Commodity specific price support and payment ex :wheat, soybeans, sugar Measure targeted on principal farmers Non commodity specific support focused on the overall farm management New system Acceleration of the structural reform of agriculture Response to the strengthening of WTO disciplines 3.We are moving to new scheme for domestic support

4. Japan pursue in this Round, the co-existence of various types of Agriculture to be assured, while fully committing to the Doha mandate and to the continuation of policy reform. Co-existence of various types of agriculture Multifunctionality, food security Domestic agriculture reform -Setting policy target on principle farmers -Promoting effective utilization of farmland -Introduction to new policy for stabilization for farm management from 2007 Establishment of trade rules that have a good balance between agricultural exporting and importing countries -Realistic trade- rules which allow continuation of domestic agricultural reform process -Balance of disciplines among Market Access, Domestic Support and Exports Contribution to development of developing countries - Adequate Special & Differential Treatment for Developing Countries - Support in combination of improvement of Market Access and Cooperation.( Japans New development Initiative for Trade )

For safeguarding non-trade concern…… eg) in market access: Sufficient coverage of sensitive/special products to allow the survival of sub-sectors that are critical for the NTC Not adopting the concept of tariff capping which would ignore the difference of tariff structure among various countries