JAPAN HAS NO PLANS TO LIBERALISE FARM MARKET
Japan has no plans to liberalise its farm
markets, but will try to narrow the gap between the price of
farm products at home and overseas, Agriculture Minister
Mutsuki Kato said.
    He told reporters the move is aimed at deflecting criticism
of Japanese protectionism on its agricultural goods.
    But Kato said he has no plans to start bilateral trade
talks with the United States over rice, Japan's staple food.
    Washington has called Tokyo's rice policy an extreme
example of protectionism and has demanded access for U.S.
Growers to the Japanese market. This is closed to imports
except in emergency.
    Kato said Japanese farmers should however "shed some blood,"
to relieve the dangerous state of international farm trade.
    His comments precede a meeting on July 1 and 2 of the Rice
Price Council at which the government advisory body will
discuss the 1987 crop producer rice price.
    Kato said he welcomed the outcome of last week's recent
summit of leaders of leading industrialised democracies in
Venice and of farm trade talks at the Organisation for Economic
Cooperation and Development (OECD) in May.
    Ministers at both conferences agreed on the long-term need
to cut subsidies worldwide, Kato said.
    Kato said that Japan is not the only country to protect
producers. He said the United States spends some 25.8 billion
dlrs a year to support producer prices and on its export
enhancement program and the EC 21.7 billion, while Japan spends
only 2.9 billion. He said that although Japan provides the
world's highest level of subsidies per acre, its subsidy per
farm family was several times lower than in the United States.
    Expressing concern about growing protectionist moves in
U.S. Congress, he said Japan should make efforts to prevent
farm trade issues between the two countries from becoming a
factor increasing protectionism in the United States.
    Japan and the United States are holding panel discussions
at the General Agreement on Tariffs and Trade over Japan's
import restrictions on 12 farm items.
    Bilateral talks on beef and citrus trade in the period from
next April are due to start this autumn.
 REUTER
