Japan's significant investment in the United States and an expansion of U.S. rice imports came with a reduction of the reciprocal tariff rate from 25% to 15%, lowering it by 10 percentage points (p). There are voices suggesting that we could use increasing U.S. rice imports as a negotiating card, similar to Japan.
In response, the Ministry of Agriculture, Food and Rural Affairs stated that the rice World Trade Organization (WTO) low-tariff quota (TRQ) systems of Korea and Japan differ, making it difficult to increase U.S. rice imports like Japan.
The Ministry of Agriculture, Food and Rural Affairs distributed a 'Q&A on expanding U.S. rice imports related to negotiations' document to reporters on the 23rd, stating regarding the results of the U.S.-Japan tariff negotiations, that 'Japan appears to be maintaining its existing WTO TRQ volume of 682,000 tons (based on white rice / 770,000 tons based on brown rice) while increasing the proportion of U.S. imports.' It added, 'Minister of Agriculture, Forestry and Fisheries Shinjiro Koizumi also remarked that there is no change in the overall tariff or total amount of MMA rice imports.'
Japan has been importing 770,000 tons of rice duty-free annually instead of fully opening its rice market, according to the results of the Uruguay Round negotiations. The Ministry of Agriculture, Food and Rural Affairs explained that Japan seems to have decided to maintain this total import volume while increasing the share of the U.S. among its importing countries.
In this context, there is an opinion suggesting that we could maintain a TRQ volume of 408,700 tons like Japan while increasing the proportion of U.S. imports.
In response, the Ministry of Agriculture, Food and Rural Affairs explained that the TRQ operating methods of Korea and Japan differ, making it challenging.
Korea is currently assigning country-specific quotas for its rice TRQ. Of the 408,700 tons in the TRQ volume, 157,195 tons are allocated to China, 132,304 tons to the United States, 55,112 tons to Vietnam, 28,494 tons to Thailand, and 15,595 tons to Australia. The remaining 20,000 tons are available to all WTO member countries under the global quota based on the WTO most-favored-nation principle.
In contrast, Japan does not set country-specific quotas and operates under a global quota. A Ministry of Agriculture, Food and Rural Affairs official noted, 'Japan, which does not have separate country quotas, can structure its imports by newly establishing country-specific quotas only for the United States,' adding, 'We have signed treaties with five countries, including the United States, China, Vietnam, Thailand, and Australia. To readjust the country-specific quotas, all five countries must agree.'