The Office of Commercial Affairs,
Royal Thai Embassy in Tokyo, Japan
Tariff rates of over 1,000% set on some farm imports
Huge tariffs, some exceeding 1,000 percent, are placed on many imported agricultural and livestock products, apparently to protect farmers in this country. Of 1,332 imported agricultural and livestock products subject to customs duties, tariffs of more than 200 percent are levied on 101 items.
The biggest tariff by far--1,706 percent--is imposed on konnyaku root, followed by the 1,086 percent set for peas. Rice imports face a 778 percent tariff. By contrast, the United States levies tariffs on about 1,800 imported agricultural and livestock products but imposes duties of more than 200 percent on a relatively small number of items, including tobacco. The European Union, which places tariffs on about 2,200 items, imposes duties of more than 200 percent on dairy products, sugar and some other items. However, no product is subject to a tariff of over 500 percent.
According to World Trade Organization data, Japan's customs duties average 22.2 percent, much higher than the United States' 5.2 percent and the EU's 13.5 percent. Japan, which once banned rice imports, started allowing in a limited volume of rice in fiscal 1995. Imported rice was called "minimum access rice," meaning the country had opened the rice market by what it regarded as the minimum possible level.
At one time, bananas were considered a luxury item and a limited volume was imported that could be consumed only by people who were ill. When the government liberalized banana imports in 1963, the fruit became very popular. Banana tariffs now range between 10 percent and 20 percent. After the ban on beef imports was lifted in 1991, beef imports increased from 460,000 tons in fiscal 1991 to 1.05 million tons in fiscal 2000. However, beef imports dropped to 670,000 tons in fiscal 2008 following the spread of bovine spongiform encephalopathy, or mad cow disease.
Despite maintaining beef import duties at a fairly low 38.5 percent, allowing a large volume of beef products to enter the Japanese market at reasonable prices, annual domestic production of beef continues to stand at the 500,000-ton level, dispelling fears that imports would destroy this country's livestock industry.
Source:The Yomiuri Shimbun Dec. 2,2010
Govt pushing on with agricultural reform
Rice is dried after harvest in a field in Owari-Asahi, Aichi Prefecture, in October.
The administration of Prime Minister Naoto Kan has launched full-fledged discussions on agricultural reform as it prepares to take part in a transpacific free-trade framework, but observers are skeptical about whether the government can come up with concrete measures given the drop in its political clout.
The government task force to promote the resuscitation of the food, farming, forestry and fisheries industries held its inaugural meeting Tuesday in preparation for participating in negotiations to join the Trans-Pacific Partnership agreement aimed at removing tariffs across the board.
Observers anticipate tough going in future discussions because domestic agricultural organizations and some politicians strongly oppose or take a cautious view of the nation's TPP bid.
In order to bolster the farm sector's foundation, it is essential to secure a future generation of farmers. The population depending on agriculture as their main revenue source has declined to about 2.6 million in 2010, one-third of the figure recorded 30 years ago, according to a census of the farming and forestry industries.
The statistics also show the farming population's average age rose to nearly 66 this year, with 1.6 million--more than 60 percent of the total agricultural population--aged 65 or older. A government official anticipates 100,000 people will quit farming annually in the years to come.
The number of people who newly took up farming totaled 66,000 last year, most of them from farming families. New farmers who came from nonfarming sectors amounted to a mere 1,850.
At a news conference Nov. 14 after the Asia-Pacific Economic Cooperation forum summit meeting in Yokohama, Prime Minister Kan revealed his sense of crisis over the aging farm population, acknowledging, "The agricultural land law restricts young people's participation in farming."
The farm ministry, on the other hand, is satisfied with the extent of agricultural reform to date. The revised farming land law, which was enforced last December, raises the corporate investment ceiling permitted in an agricultural incorporated body from 25 percent to just under 50 percent. The law deregulates corporate leasing of agricultural land in principle. Citing data that nearly 150 companies newly took part in farming over the seven-month period following the revised law's enforcement, Agriculture, Forestry and Fisheries Minister Michihiko Kano said reform has made some progress.
However, problems remain.
Pasona Inc., a major temporary manpower agency, last year announced it would establish an agricultural incorporated body by taking advantage of the revised law. The firm planned to operate an onion farm over an expanse of land in Awaji, Hyogo Prefecture, a place famous for onion production due to its mild weather, and to hire young people interested in farming.
But the firm was urged to review its plan given the prospects of low profitability and the legal need to secure an investment partner from among farming families under the revised agricultural land law, which limits corporate investment to less than 50 percent in a given project.
Uniform payouts problematic
The Democratic Party of Japan-led government has established a system to provide cash handouts for individual farming households to help compensate for the drop in income after discontinuing rice production, but it needs to be revised to encourage their hiring of young people as farmers and to consolidate agricultural land for integrated use.
Under the current system, a fixed amount of 15,000 yen per 1,000 square meters of rice acreage is paid uniformly nationwide to farming families who have reduced their rice acreage in response to government requests. But the system often has been abused by some farmers who try to have their leased land returned for the purpose of receiving compensation money.
A farmer who returned his rented land to its owner said: "I've heard of similar cases happening in other areas, too. Such cases are occurring more frequently in areas where rice acreage consolidation is progressing." In October, the Yamagata Prefectural Assembly approved a written opinion calling for the revision of the income compensation system, in particular the fixed cash handout amount.
The practice of forcing farmers to withdraw from rented land hinders efforts to enhance agricultural efficiency, the written opinion says.
The system has been criticized even by some DPJ lawmakers. Masashi Mito, a DPJ member of the House of Councillors, said consolidating farmland would not make headway if compensation payouts remained uniform nationwide.
Therefore, the government task force on agricultural reform is taking an earnest look at a plan to provide additional compensation to farmers who increase their farming acreage. The task force also might study the advisability of continuing the rice acreage reduction policy.
Another important task is to enhance the international competitiveness of domestic agricultural products. The current Diet session has seen passage of a bill to encourage the consolidation of production, processing and sales of farm produce, thereby enhancing the added-value of agricultural products.
In a related move, Yamagata Prefecture and Shonai Bank opened a school two years ago to teach the production, processing and marketing of agricultural products in an integrated manner. Fukushima Prefecture, for its part, launched a similar school in October. Thus, local governments have shown keen interest in promoting consolidation in the agricultural sector.
The image of Japanese food products as safe and secure has taken root in other Asian countries.
High-grade wagyu beef, apples produced in Aomori Prefecture and yams harvested in Hokkaido already have a competitive edge in export markets.
Efforts also must be made to enhance the competitiveness of rice as an export item, observers said.
Source:The Yomiuri Shimbun Dec. 1,2010
Bangladesh Mulling Special Economic Zone For Japan Firms
TOKYO (Nikkei)--The Bangladesh government is considering creating a special economic zone for Japanese companies, visiting Prime Minister Sheikh Hasina told The Nikkei on Wednesday.
Calling Japan a leading partner in her country's economic development, Hasina expressed Bangladesh's desire to enforce the cooperative bilateral relationship. Attracted by cheap, ample labor, Fast Retailing Co. and other Japanese companies have set up manufacturing operations in Bangladesh as an alternative to China. However, the South Asian country lacks industrial areas with appropriate infrastructure.
The prime minister said the government plans to expand special economic zones that will offer cheap labor and industrial facilities. Hasina also showed hopes of signing an economic partnership agreement with Japan by 2012, when the two countries celebrate the 40th anniversary of their diplomatic ties.
Source:The Nikkei Dec. 2,2010
Nissan To Turn Kyushu Plant Into Primary Production Hub
TOKYO (Nikkei)--Nissan Motor Co. plans to consolidate most of its domestic production at its Kyushu factory in Fukuoka Pref. as it moves to reorganize its domestic manufacturing operations.
The company now produce compact cars at its Oppama plant in Kanagawa Pref., luxury cars at its Tochigi factory in Tochigi Pref., and midsize and large models, such as the X-Trail sport utility vehicle, at the Kyushu facility. As part of its reorganization efforts, the automaker recently transferred production of its Serena mainstay minivan to the Kyushu plant from a factory in Kanagawa Pref. operated by manufacturing unit Nissan Shatai Co.
By little and little Nissan plans to move production of compact cars from the Oppama facility to the Kyushu plant, with production there slated to begin within three years. Some of the Kyushu factory's compact car output may be exported. Nissan aims to decrease manufacturing costs at the Kyushu plant to 30% below fiscal 2009 levels by fiscal 2012 by increasing parts imports from South Korea, China, Thailand and other Asian countries. This is expected to result in imports accounting for about 40% of the overall parts used at the plant, double the figure at present.
The Oppama plant will focus mainly on production of electric vehicles. The Tochigi location will continue to produce luxury vehicles. Nissan plans to manufacture 1.14 million vehicles in Japan in the current fiscal year. Although the automaker has begun producting its March compact in Thailand, Nissan needs to "keep its domestic production at around 1 million units" in order for it to continue improving manufacturing technologies and to maintain employment, Chief Operating Officer Toshiyuki Shiga said.
Source:The Nikkei Dec. 2,2010
Toyota may license hybrid tech to partner FAW Group of China
NAGOYA (Kyodo) Toyota Motor Corp. is negotiating a deal to license its expertise in hybrid vehicles and to supply car parts to its Chinese partner, FAW Group Corp., company sources said Wednesday.
According to the sources, the carmaker plans to offer the technology necessary for producing vehicles powered by gasoline and electricity as well as motors, batteries and other parts for use in the FAW Group's hybrids due to be marketed in 2013 or later. The aim is to boost Toyota's presence in the Chinese market, where the company is lagging behind competitors, such as Volkswagen AG and General Motors Co.
The proposed licensing deal could become Toyota's fourth involving hybrid technology and the first with a Chinese carmaker. The company has already made such arrangements with Nissan Motor Co., Ford Motor Co. and Mazda Motor Corp. Toyota is in similar talks with Daimler AG, the sources added.Thursday, Dec. 2, 2010
Source:The Japan Times Dec. 2,2010
Job offers for foreign nurses, care workers drop by 50%
The number of job offers from domestic hospitals and nursing care facilities willing to accept Indonesians and Filipinos as potential nurses and nursing care workers next fiscal year stands at 177, only about half the number of such offers for this fiscal year, it was learned Saturday.
Such Indonesian and Filipino personnel come to Japan under bilateral economic partnership agreements formed with their countries. To continue working in this country past a certain time, they are required to pass Japan's national qualifying examinations. Both Indonesia and the Philippines want Japan to accept as many nurses and nursing care workers as possible.
The Japan International Corporation of Welfare Services, which serves as an intermediary between Indonesian and Filipino applicants and domestic hospitals and nursing care facilities, began taking applications Oct. 7. The original deadline was Nov. 19, but the organization has decided to extend it to late December.
According to JICWS, 119 nursing care workers and 58 nurses have so far been sought for next fiscal year. This was 85 fewer in each category than this fiscal year. A total of 645 were employed in fiscal 2009, when candidates from the two countries began to be accepted, meaning that job offers have declined to about 30 percent of that level in just two years.
JICWS believes this is partly due to more Japanese being employed in these fields, especially nursing care services, amid an extremely difficult job market. JICWS also said employers often take on a heavy burden with non-Japanese staff, who frequently need language training. Both nurses and nursing care workers from the two countries can continue to work in Japan if they pass the national licensing exam, but only 1.2 percent of the foreign nurse candidates passed in February.
The manager of a nursing home for the elderly in the Tohoku region said: "If it's not certain they can pass the exams, it's unavoidable that job offers decrease. The system has struck a reef, and fundamental reform, such as extending the length of time people can stay, is necessary." The Health, Labor and Welfare Ministry has strengthened its assistance for the foreign staff this fiscal year, including providing subsidies to hospitals and nursing care facilities for the cost of Japanese lessons.
A JICWS official said, "We're trying to reduce the burden on employers, so they'll be able to accept as many candidates as possible."
Source:The Yomiuri Shimbun Nov. 28,2010
Foreign dentists, nurses get easier visa durations
The Justice Ministry on Tuesday revised an ordinance concerning residence visas, lifting restrictions for foreign dentists, nurses, maternity nurses and health workers who have passed Japan's qualification requirements.
The step, which abolished limits on the duration and scope in which they can work in the country, was taken on the grounds that Japan needs to accept a broad range of foreigners with specialized skills to cope with the declining birthrate and rapidly aging population.
The revision allows foreign nurses and health workers without permanent resident status to continue working in medical institutions beyond the designated number of years. It also paves the way for foreign dentists to open their own clinics in urban areas and work at private clinics.
Until now, the ordinance limited the duration that foreigners could work under medical practitioner visas after obtaining Japanese qualifications to six years for dentists, seven years for nurses, and four years for maternity nurses and health workers.
It also only allowed foreign dentists to work as long as they were doing clinical studies at university hospitals and to work beyond the designated number of years only if they practiced in remote areas designated by the justice minister.
Abolishing the work visa restrictions was one of the agenda items cited in the government's fourth basic plan on immigration set in March. The six-year working limits for foreign doctors was lifted in June 2006.
Source:The Japan Times Dec. 1,2010
Consumer Affairs Agency to crack down on false advertising by health food firms
Following a spate of consumer complaints of adverse health effects and ineffective therapies, the Consumer Affairs Agency is set to announce the names of malicious health food companies that lure customers with exaggerated claims in their advertising.
The announcements, commencing in December, are aimed at cracking down on bait-and-switch advertising such as, "You can lose weight just by drinking this product," or, "This food is believed to be an effective cancer treatment." It is the first time that the government has decided to impose administrative punishment on businesses running misleading ads for their health food products based on a stricter application of the Health Promotion Act.
Health food manufacturers are prohibited by the Pharmaceutical Affairs Act from making any advertising claims that imply their products have medicinal effects. Violators are subject to criminal charges. However, there are a number of Internet and other forms of advertising which do not violate the letter of the pharmaceutical law but can mislead consumers to believe that products have medicinal benefits.
The National Consumer Affairs Center of Japan receives some 15,000 complaints about health food products every year, including side effects such as nausea and claims the products have negligible effect.
The Health Promotion Act prohibits sales slogans that are "largely different from actual characteristics of products or intended to mislead consumers" in promoting nutritional information or disease-prevention effects of health food.
In addition to advertising claims that can mislead consumers by implying products have a therapeutic effect or citing fictional licenses and government certification, those trying to lure customers by quoting unreliable test results, personal experience and book titles will also be regarded as violations of the act. The Consumer Affairs Agency has been calling on some 300 health food companies to cease running online advertisements containing inappropriate expressions such as "The best diet food ever," or "Reduce swelling by improving blood circulation" since June this year.
If these companies have failed to make proper changes to their exaggerated promotional slogans by the end of November, the agency will release their names after a warning. The agency is also planning to strengthen the application of the Act against Unjustifiable Premiums and Misleading Representations, which forbids labels that overstate the quality of a product.
Before the Consumer Affairs Agency was set up in September 2009, these problems were handled by the Japan Fair Trade Commission, which mainly focused on ensuring fair competition rather than preventing damage to the health of consumers by controlling deceptive labeling.
Source:Mainichi Japan December 1, 2010
Women looking to get all warm and fluffy
This winter they want fluff around their necks and in their hair too.
For autumn and winter accessories, fur and chunky knitwear are this year's must-have ingredients. That even seems to be true for hair accessories, at least among teen girls and 20-something women. And then there are snoods, though neck warmers might be a more descriptive term. Either way, female shoppers young and old are snapping up the things. Reality, their relative uniqueness - be honest now, how many of you have ever had a snood? - is succeeding in prompting even the most frugal shopper to loosen her purse strings.
At its outlet in Tokyo's Shibuya Ward, Rose Bud, a retailer offering some 50 types of hair accessories, "items that use natural materials" are going fast, store officials said. Especially popular are ponytail holders with big fur pompoms that come in six colors and sell for 1,680 yen ($20) apiece. Similar ponytail holders but with two small pompoms were offered last year. This season, the two fur balls were replaced by a single, huge piece of fluff. "These can also be worn around an arm as an accessory," store officials said. Also flying off the shelves are hair clips with a feather decoration retailing for around 3,000 yen.
Snoodday
Even expensive items are selling well. Matsuya Co.'s department store in Tokyo's Ginza district reports that 20-somethings are "falling in love at first sight" with mink headbands and hair accessories. They are snapping them up "despite price tags of more than 15,000 yen," in the words of one clerk.
Coming into mainstream fashion this season are snoods. These loops come in a variety of styles. Some look like scarves - but without ends.
Others are wide and cover the shoulders and elbows. Snood popularity started from this season after a fashion house made the things part of its fall/winter 2009 collection.
Seibu's flagship department store in Tokyo's Ikebukuro district offers about 70 types of snoods. Even when the hot weather lingered through September and not even a single regular shawl was sold, a whopping 80 snoods flew off the shelves in a month.
"While consumers are determined not to buy more of the accessories they already have, they got hooked on the snood as a brand-new item, " a Seibu official said. Now with the temperature dropping, the store is selling about 10 snoods every Saturday and Sunday.
Versatility factor
A shopper takes in the eclectic collection of snoods on display at Seibu's flagship department store in Tokyo's Ikebukuro district.
Art of snooding. Top, basic styling. A wide snood knitted with raccoon dog fur makes a stylish accessory when worn around the neck and draped out front. Bottom, personalized styling. When a snood is draped over the shoulders, it can be turned into a shoulder warmer in a flash. Young women prefer to wear snoods by casually hanging them a bit to one side. When worn symmetrically, a snood can transform into a mini cape.
Popular types range in price from 7,000 yen to 8,000 yen and are attracting a broad group of women - from 20-somethings to sexagenarians. "Older customers are picking up smaller snoods. Many say they will use them not only as a fashion item but also as a quick neck warmer when at home," the Seibu rep said.
Wraps can be difficult to stylishly add to an outfit. And there is always the risk of them falling off the shoulders. But snoods require little fuss and can be simply draped around the neck. Their versatility is also making them popular. Snoods can be wrapped twice around the neck, used as a head cover or simply draped over the shoulders.
Source:The Nikkei Nov. 29, 2010
Vegetable import increased by over 70%
The trade statistics by Ministry of Finance, showed that the vegetable (fresh & child) import of this October was 67,868 ton, increased by 70.9% from the same month the year before.
The price of cabbage and onion harvested in Japan hiked and that result in the expansion of the vegetables import from China and U.S. The volume of other imported vegetables is increasing, compare with last October. By products, pumpkins increased by 13.8 times cabbages increased by 6.9 times, lettuce increased by 5.1times, green onion by 88.7%, and onions by 65.6% respectively.
At Tokyo central wholesale market, the October’s wholesale price of lettuce rose by 3 times and that of cabbage, green onion and onion rose by 30-90%. Regarding to the volume of imported vegetable, a green onion is half priced of the domestic one and an onion is about 60% of the domestic one.
As for chicken meat, the import volume of this October was 38,481 ton, increased by 44.5% from the same period of last year. Due to the consumers’ saving behavior, the demand for beef increased rather than the demand for chicken. Japan Meat Traders Association, JMTA said that the domestic whole price of chicken tends to increase and that results in the rise in the imported chicken volume.
While the imported beef volume has decreased by 31.8% from the same month the year before
Source:The Nikkei Nov.30, 2010
Govt Holds Meeting To Revitalize Agriculture With Eye On Free Trade
TOKYO (Kyodo)--The Japanese government on Tuesday held the first meeting of a task force to discuss ways to reinforce the country's farm sector, which is likely feel the effects of Tokyo's drive to pursue free trade deals with major trade partners.
The task force was launched as the country continues to consider whether to join negotiations for a U.S.-backed multilateral trans-Pacific free trade agreement, which would require member economies in effect to reduce all tariffs to zero.
Prime Minister Naoto Kan, who heads the task force, told other Cabinet ministers attending the meeting, ''I would like all of you to make a great efforts to enable Japanese agriculture to revitalize itself and possess a strength we can be proud of throughout the world.'' The government is expected to compile a basic policy on agricultural measures in June and decide whether Japan is prepared to join the negotiations for the Trans-Pacific Partnership initiative. But frictions among Cabinet ministers may increase as discussions proceed, with Agriculture, Forestry and Fisheries Minister Michihiko Kano reacting cautiously and Foreign Minister Seiji Maehara positive about joining the TPP. ''This task force has not been set up on the assumption that we will join the TPP. I see no reason to make a decision in June on whether Japan should join the TPP,'' Kano told a regular press conference on Tuesday.
The measures to enforce the farm sector are likely to center on the expansion of an income support system for farmers, although realizing such measures will require considerable resources that will not be easy to set aside given the country's fiscal condition.
Tokyo formalized in a Cabinet meeting on Nov. 9 a policy to pursue free trade agreements, which included its decision to begin consultations with the countries negotiating the TPP initiative, a move that has triggered fierce criticism from farmers.
The TPP originated in a free trade agreement among Brunei, Chile, New Zealand and Singapore, and negotiations are under way to expand it by including more countries in the Asia-Pacific, such as major agricultural exporters Australia and the United States. Known as a ''high-level'' FTA, the TPP provides Japan with a high bar to clear given its longstanding reluctance to open up its agricultural market.
Source:The Nikkei Nov.30, 2010
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