Page 55 - Regional_rice_report_with_full_bookmarks

PROJECT “NETWORK FOR AGRICULTURE AND RURAL DEVELOPMENT
THINK-TAKS FOR COUNTRIES IN MEKONG-SUB REGION” (NARDT)

Table 22: Import requirements for rice by the US

Cambodia Lao PDR Thailand Viet Nam
MFN duties (Applied) 4% 4% 4% 4%
Number of tariff lines 6 6 6 6
Number of import requirements
measurements 49 49 49 49
Some of the main requirements
+ Followed by foreign supplier verification program
(FSVP);
+ Quality requirement
+ Minimum requirement of ensuring hazard analysis
and risk-based preventive controls for certain foods
+ Traceability requirement Ability to trace every step of producing products
+ Others Licensing for the protection of public health
Source: Authors’ compilation from International Trade Centre and customs
of each country.

- The Japanese market
Market Overview: The import demand of Japan is stable at around 600
million USD. In 2020, Japan imported 600 thousand tons of rice valued at more than
500 million USD, an increase in the past 5 years, but compared to 2009 it tended
to decrease slightly. However, the import of rice is not intended for consumer
consumption. Rice is imported by the Japanese Government according to The Law for
Stabilization of Supply-Demand and Price of Staple Food or imported to be purchased
and sold by the Japanese Government in response to a joint application by the seller
to and purchaser from the Japanese Government according to the Law, imported
with certification of Minister of Agriculture, Forestry and Fisheries according to the
cabinet order concerning rice and others provided by the cabinet order provided in
the Law or imported as repayment to a Japanese Government loan.

Competition: In this market, the US is the major exporter accounting for up
to 57% market, Thailand 27%, and China 13%, other exporters are very small and
insignificant. The level of concentration in the market is quite high as shown in the
HHI index above 4180, indicating the high barriers for entry to this market.

Market requirements: This country has high protection of rice domestic sector.
The quota Japan applied on rice is equivalent to 262% tax (Table 20). The quality and
requirements for rice entered to this market are controlled by the Ministry of Health,
Labour, and Welfare. The quality requirements are followed by the foreign supplier
verification program (FSVP).

Market potential: In general, there is little potential for Cambodia, Lao PDR,
and Thailand whereas Viet Nam has a high potential due to tariff reduction from
joining CPTPP. It is estimated that the import tariff reduction for rice for Viet Nam will
9
be respectively from 262.41% to 37.71% (International Trade Center, 2022), creating an
advantage in terms of tariffs for Viet Nam for rice products outside the quota.

9 Converted by ITC using Ad Valorem Equivalent method

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