Permalink : http://hdl.handle.net/2115/66023

Coming to grips with the challenges posed by globalization will absolutely necessary if the Japanese economy is to be revitalized. Currently, Japan is involved in negotiations to join the TPP (Trans Pacific Partnership Agreement), which would serve as an essential vehicle for this encounter. Beyond the elimination of border protection such as tariffs, the TPP is seeking to develop common rules and institutional harmonization to improve productivity in its member countries. Agriculture is, however, considered to be a stumbling block in these TPP negotiations, because tariffs on agricultural products are still maintained at a very high rate in Japan. It is said that, unless structuralchanges are initiated, the elimination of these tariffs in their entirety would seriously damage Japanese agriculture, particularly in Hokkaido. On the other hand, Japanese domestic agricultural production is declining and the introduction of structural reform is inevitable, regardless of TPP membership. In addition, external pressures for globalizing agriculture come not only from the TPP, but will continue to come from other sources as long as Japan maintains its high tariffs on agricultural imports. This article examines the possibility of making adjustments in Hokkaido agriculture to cope with globalization, particularly under a TPP trade regime, and focuses on upland farming crops such as wheat, soybeans, sugar beets, and starch potatoes. First, the movements of and the conditions for these products in global as well as domestic markets are discussed. Next, the policies regarding these four products are examined in terms of PSE (Producer Support Estimates). Finally, suggestions are offered as to how Hokkaido agriculture can adjust to the TPP and the importance of seeking international comparative advantage through the introduction of new technologies in Hokkaido.