The US accounts for roughly one-third of Japan's agricultural imports and about 20 percent of that amount originates in California. Rice is the focus of Japanese agricultural policy and the stated goals are to enhance food security and raise farm incomes. In the recent Uruguay Round Trade Agreement, however, Japan pledged to gradually increase the import share of its domestic rice consumption from 4 to 8 percent over six years. Of this total, about half came from California. In addition, tariffs are being significantly lowered for beef, oranges, grapefruit, certain dairy products, peaches, wine and vegetable oils.
Trade disputes seem to be a byproduct of increased farm trade on the North American continent.
A continual and contentious disagreement has focused on increased Canadian exports of wheat and barley to the United States, some of which makes its way into California. In 1997, with wheat imports rising again, there are renewed US complaints, many focused on the Canadian Wheat Board. In 1995, the United States complained formally about Canada's high tariffs on dairy, poultry, and egg products. The wealthy nations of Western Europe have been a traditional market for US agricultural exports. Although high trade barriers and other rules limit its imports of grains, meat and many other products, the EU remains a key destination for US and California exports.