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Protection for the paddy fields

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The United States and the European Union have grabbed most of the headlines during the WTO ministerial conference in Hong Kong for their perceived intransigence on the issue of agricultural subsidies and domestic support mechanisms.

While the world's two largest economies incur the wrath of the developing world, two Asian countries equally culpable for this agricultural protectionism have flown lower under the radar.

Japan and South Korea have much in common when it comes to their agriculture sectors, most obviously rice. The diminutive grain enjoys almost mystical status among consumers and has done for centuries, while hot-button issues such as conservation of rural traditions and food security continue to dominate their respective domestic politics.

Both countries' consumers also currently pay over the odds for the 'superior' taste of the homegrown produce, four times as much as in international markets in South Korea and even more in Japan, thanks to a cocktail of tariffs and price supports that increase the price by more than 500 per cent.

This combination of factors has created an international perception that neither country is ever likely to budge from its protectionist stance, which arguably explains the relative lack of attention in Hong Kong - militant Korean farmers notwithstanding.

But in relative baby steps, the status quo in both nations is altering in favour of liberalisation. While tariff-free imports are not just around the corner, there are signs South Korea and Japan are beginning to lay the groundwork.

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