| JAPAN MINISTRY SAYS OPEN FARM TRADE WOULD HIT U.S. | |
| Japan's Agriculture Ministry, angered by | |
| U.S. Demands that Japan open its farm products market, will | |
| tell U.S. Officials at talks later this month that | |
| liberalisation would harm existing U.S. Farm exports to Japan, | |
| a senior ministry official said. | |
| "Imports from the U.S. Would drop due to active sales drives | |
| by other suppliers," the official, who declined to be named, | |
| said. "Japan is the largest customer for U.S. Farm products and | |
| it is not reasonable for the U.S. To demand Japan liberalise | |
| its farm import market," he said. | |
| Agriculture Minister Mutsuki Kato has said if the U.S. | |
| Insists Japan open its protected rice market it will also open | |
| its wheat market, where volume and origin are regulated to | |
| protect local farmers. | |
| Australia and Canada could then increase their wheat | |
| exports as they are more competitive than the U.S., He said. | |
| End-users would also buy other origins, grain traders said. | |
| U.S. Agriculture Secretary Richard Lyng, who is due to | |
| visit Japan for talks between April 16-27, has said he will ask | |
| Japan to offer a share of its rice market to U.S. Suppliers and | |
| remove quotas on U.S. Beef and citrus imports. | |
| Other countries are already cutting into the U.S. Market | |
| share here. Australia, the largest beef supplier to Japan, has | |
| been trying to boost exports prior to the expiry of a four-year | |
| beef accord next March 31. | |
| Imports of U.S. Corn have fallen due to increased sales | |
| from China and South America, while Japanese soybean imports | |
| from Brazil are expected to rise sharply this year, although | |
| the U.S. Will remain the largest supplier. | |
| U.S. Feedgrain sales will also drop if Japan opens up its | |
| beef imports, since Japan depends almost entirely on feedgrain | |
| imports, mainly from the U.S., Japanese officials said. | |
| An indication of the U.S. Position came last December when | |
| Under Secretary of Agriculture Daniel Amstutz said Japan has | |
| the potential to provide one of the largest boosts to U.S. | |
| Agricultural exports, with the beef market alone representing | |
| some one billion dlrs in new business. | |
| The U.S. Has also asked the General Agreement on Tariffs | |
| and Trade to investigate the legality of Japanese import | |
| controls on 12 other farm products, including fruit juices, | |
| purees and pulp, tomato juice, ketchup and sauce, peanuts, | |
| prepared beef products and miscellaneous beans. | |
| To help calm heated trade relations with the U.S., Japan's | |
| top business group Keidanren has urged the government to remove | |
| residual import restrictions on agricultural products. | |
| But Agriculture Minister Kato has ruled out any emotional | |
| reaction, and the senior ministry official said the farm issue | |
| should not become a scapegoat for trade pressure in the | |
| industrial sector. | |
| "Japan is the largest buyer of U.S. Farm products, and these | |
| issues should not be discussed on the same table," the official | |
| said. | |