The mouthpiece for Japan's powerful agricultural cooperatives, with their money links to the conservative politicians in Tokyo, MAFF has maintained a grudging line on reform. Exploiting trade rules on tariffication, the bureaucrats were able to tag foreign imports with a hefty extra slug - theoretically equalising domestic prices and international ones. The applicable tariff this year effectively represents a 390per cent barrier for Australian exporters, making it impossible for them to compete with local producers. Australian rice is sold on Japanese shelves through a separate quota and tender system. But the amount is laughably small given Japan's domestic consumption.
Most foreign rice ends up being stockpiled or rerouted as aid for developing countries.
And by accepting tariffication, Japan was also able to reduce the amount of overseas rice it must purchase through the minimum access regime. The hardball tactics didn't stop there. According to the outgoing Australian Trade Minister, Tim Fischer, when Australia lodged an international appeal against the tariff, it was notified, none too subtly, that it could suffer retaliation through loss of some of its export markets if it persisted. Tender decisions for wheat and rice crops were delayed. The appeal was quickly withdrawn.