As a result of renegotiation on Korea’s rice import at the WTO in 2004, the delayed tariffication was extended to 2014. Korea will have to change its rice import system from import quotas to tariffication after 2014. Many experts argue that even if tariffication applies to Korea, there might be no extra rice imports over MMA volume. But others claim that if international rice price decreases, rice imports are likely to increase over MMA volume due to the low price competitiveness of Korean rice.

It is needed to analyze the case of an import system changed from import quotas to tariffication. Japan and Taiwan changed into the tariff system in 1999 and 2003 respectively. Rice tariffication had almost no impact on their domestic rice industry because extra imports over TRQ were negligible. Recently, Japan and Taiwan are importing about 50 M/T and 500 M/T of rice over TRQ respectively. It is thought that TE has protected the domestic rice industry, since tariffication applied to both Japan and Taiwan.

However, it is needed to find ways to stabilize the domestic market by providing information about supply and a demand of imported rice, due to the possibility of temporary surge in supply and drop in domestic rice prices after tariffication.

This paper provides backgrounds of rice tarrification and impacts on rice markets in Japan and Taiwan.


Researchers: Dong-Gyu Park, Jun-Ho Seung
Research period: 2013. 4. - 2013. 7.
E-mail address: dgpark@krei.re.kr