Its low food self-sufficiency also explains why Japan has worked towards achieving a stable food supply. Nevertheless, the very recent tightening in world supply and demand for grain could not have been foreseen at the time of the Uruguay Round. And yet, the EU, in particular, to guarantee demand within the area, imposes taxes on grain exports to third countries, a policy which naturally restricts exports. Where this to become a worldwide trend, it would simply exacerbate the squeeze on the international grain market and would run completely contrary to the free trade goals of the Uruguay Round. It remains to be seen whether the current squeeze is short term or structural.
Expert opinions are clearly divided.
While food demand in countries like China will rise sharply in line with economic development, no one seems to have the definitive answer as to whether production will catch up with soaring demand.