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Associated Press Worldstream | BY NATALIE OBIKO PEARSON | September 2, 2003

Japan will oppose a proposal to cut tariffs and expand import quotas at global trade talks next week, Japan's agriculture minister said Tuesday.

A draft of an agreement intended to form the basis of a global trade treaty by the end of 2004 will be presented to trade ministers from all 146 World Trade Organization member states when they convene in Mexico next Wednesday.

But Agriculture Minister Yoshiyuki Kamei said it discriminated against countries, like Japan, that have to import most of their food supply.

"I intend to press strongly for revisions on this text," he told reporters at the Foreign Correspondents' Club of Japan in Tokyo. "If things proceed as is, there will be great unfairness between importing and exporting countries."

The United States and other exporters of farm goods want tariffs and farm subsidies reduced and access to other markets increased. But importers such as Japan think the calls for greater cuts and increased import quotas are too much.

Kamei said Japan supports the average 36 percent reduction that was agreed upon in Uruguay during the last round of negotiations that finished in 1994, and opposes further tariff reductions.

"The new trade rules must take into consideration not just agricultural giants, like the United States and Europe, but agriculturally weak nations and developing nations," Kamei said.

Japan is already among the world's biggest food importers, relying on imports for 60 percent of its food. But it also fiercely protects agricultural products such as rice. Tariffs on the imported grain can soar as high as 490 percent.

Kamei rebuffed criticism that Japan has not done enough to open its market in recent years. He cited moves to lift government control over the price of rice, reduce tariffs on dairy products, beef, wheat and raw sugar, and refrain from subsidizing exports.

"By no means has Japan clung to the past, but has rather taken the lead over other countries in agricultural reform," he said.

The draft proposal, presented by WTO General Council Chairman Carlos Perez del Castillo last week, attempts to bridge differences in contentious industries, including agricultural produce and manufactured goods.

But rich and poor countries, importer and exporter nations alike have said they are unhappy with the proposal.

Kamei acknowledged it would be tough to find agreement.

"I think this is going to be a very difficult conference," he said.

Kamei was to leave for Washington later in the day. He is scheduled to meet with U.S. Agriculture Secretary Ann Veneman on Wednesday before heading to Cancun, Mexico for the WTO talks on Sept. 10-14.Associated Press Worldstream:

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