Future world order: Economic tug-of-war / Japan losing ground in competition to buy chicken (Japan News)
- Impact Area
Over the past 25 years, Japan has benefited from the free trade system under the World Trade Organization writes Japan News in its report on the state of export restrictions across the globe amid the confrontation between the United States and China, and Russia’s invasion of Ukraine. Chapter 12 of the agreement provides that “the Member instituting the export prohibition or restriction shall give due consideration to the effects of such prohibition or restriction on importing Members’ food security.”
However, this WTO rule has been undermined. According to data released by the International Food Policy Research Institute based in Washington D.C. and other documents, 29 countries including India, Indonesia, and Kazakhstan are confirmed to have implemented food export restrictions since Russia invaded Ukraine and 19 countries still had such restrictions as of the end of November.
Japan has suffered from deflation for many years and the purchasing power of people in Japan has declined relative to people based in other countries. Businesses are hesitant to pass on increased costs via retail prices, which makes it difficult to offer higher purchase prices to suppliers.
European and Middle East countries that have imported chicken mainly from Ukraine are now also focusing on Brazil. “We Japanese might be about to enter a time when we completely lose the purchasing competition,” the trading company official said, expressing a strong sense of urgency. Read more
Republished in Asia News Network