Oil Crops Outlook No. (OCS-1102-01) 13 pp

December 2002

Oilseed Policies in Japan

This report provides a detailed description and analysis of policies used by Japan to support its oilseed producers and processors. Domestic policies include compensation to farmers when market prices fall below specified targets and subsidized hazard insurance. The government provides strong incentives to divert land from rice into soybeans, and soybean production is growing. At the border, no tariffs are imposed on oilseeds (except for peanuts) or oilseed meals. However, significant tariffs apply to vegetable oils. These tariffs allow Japan's oilseed crushers to sell vegetable oil at prices above world trade levels. A tariff-rate quota applies to peanuts.

Keywords: Japan, oilseeds, soybean, canola, rapeseed, peanut, vegetable oils, oilseed meals, policies, domestic support, trade, trade liberalization

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