This year will be important for Japan in developing policy for creating a viable agricultural sector without inviting criticism of protectionism from abroad. Among the reasons for tackling this issue is that, although the Doha Round of World Trade Organization negotiations has stalled, the liberalization of agricultural trade is inevitable.
Japan and Australia have agreed to start negotiations to work out a bilateral economic partnership agreement (EPA). Since Australia is a major agricultural producer, abolition of tariffs on farm products under the EPA would put Japanese farmers at a competitive disadvantage in terms of prices.
The Japanese people worry about the nation's low food self-sufficiency rate, especially when considering that world population growth and global warming could someday destabilize international food exports and supplies. Agriculture is likely to become a big issue during the campaign for the Upper House election in July along with other issues such as economic inequalities and education reform. This is because agricultural villages exist in many of the 29 single-seat constituencies with election races, the results of which are expected to greatly influence the overall outcome.