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Japan as U.S. Trading Partner

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Japan is an important trading partner for the United States, but there are still problems because of the Japanese propensity for different forms of protectionism to keep out competitive goods. There are certain goods that Japan has a particular need for and that the Japanese cannot produce themselves in sufficient quantity, such as wood, highly prized in Japan for its decorative and constructive qualities but not produced domestically in any great quantity. Rice is a staple in Japan, and the Japanese consumes a good deal of rice each year without allowing much in the way of imports from other countries. It is believed that there is a market large enough to support imported rice to a greater degree than is presently allowed and that it might be possible to use trade sanctions or some other means to force the Japanese to open their rice markets to outside competition from the United States. An examination of the trading issues involved and the options open to the United States will be examined to determine whether it is feasible to press this issue with the Japanese.

The Japanese industrial expansion since World War II has been considerable and has been noted by other industrialized nations around the world as almost miraculous. Japan began from a position far behind the West, with her infrastructure devastated by the war, and since has achieved a position of economic preeminence, challenging the United States and other industria

. . .
. Grain and soybeans accounted for two-thirds of this trade. Still, the U.S. was making demands that the Japanese liberalize their beef and citrus imports. However, many saw the idea that the U.S. should impose quotas on what was to be exported to Japan as another form of protectionism no better than what Japan was doing to keep out certain products (Schlossstein, 1984, pp. 80-81). One of the leading organizations in Japan dedicated to controlling the amount of foodstuffs imported from the United States is Zenchu, or the Central Union of Agricultural Cooperatives. The group is opposed to liberalization of beef and orange quotas and believes that the United States will flood Japan with cheap rice once agricultural quotas are relaxed, thus putting Japanese rice farmers out of work. The union is concerned about protecting Japan's self-sufficiency in food, already imperilled with a 50 percent reliance on foreign supplies, of which the United States furnishes half (Schlossstein, 1984, p. 82). Price is not what drives the Japanese food market. While Japan imports about half the food needed each day, if it were interested in price it would import much more. Rice in Japan is grown on tiny little plots that together take up abo
. . .

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Approximate Word count = 5286
Approximate Pages = 21 (250 words per page)

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