1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Reforming Agriculture and Promoting Japan's Integration in the World Economy

The problems of Japanese agriculture – in particular low productivity and the prevalence of part-time farmers and small plots have been evident for the past 50 years. The high level and distortionary nature of agriculture support imposes burdens on consumers and taxpayers, undermines the dynamism of the farming sector and complicates Japan’s participation in comprehensive bilateral and regional trade agreements that would boost its growth potential. The priority is to shift to measures decoupled from production and gradually reduce border measures. Continued failure to implement necessary reforms threatens the future of the agricultural sector. In the absence of fundamental reform, the Japanese agriculture will continue to wither, trapped in a cycle of low productivity, low earnings and dependence on subsidies and import protection. The time for reform is now. A more open and market-oriented sector would also facilitate participation in comprehensive regional and bilateral trade agreements.

English

Keywords: decoupling, farm size, Trans-Pacific Partnership, Japan, agricultural reform, multifunctionality, Producer Support Estimate, food security, rice, food self-sufficiency, economic partnership agreements, production adjustment programme, agricultural subsidies, farm consolidation, Abenomics
JEL: Q17: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Agriculture in International Trade; Q18: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Agricultural Policy; Food Policy; Q15: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
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