Abstract

Japan's agriculture and food sector, while taking numerous twists and turns, has progressed stepwise along a path of trade liberalization of agricultural and food products. Trade liberalization is one of the important factor of globalization for the agriculture and food sector (food system). A second factor of globalization for the food system is the advancement of foreign direct investment in the food industry. Against a backdrop of Japanese yen appreciation against the United States dollar, which was particularly striking after the mid-1980s, food manufacturers began to establish a great number of production plants and raw material procurement bases in Asia, leading to the importation of large quantities of raw materials. The third factor of globalization for the Japanese food system is the signing of bilateral and multiple Economic Partnership Agreements (EPAs)with other countries. Japan has signed 15 EPAs with various countries, and is currently proceeding with negotiations for participation in the Trans-Pacific Partnership. Furthermore, the Japanese government has begun structural reform to advance globalization of its stagnating food system based on a Global Food Value Chain strategy. As a result of these policies, the food system, which is composed of forestry, fisheries, food manufacturing, food distribution, and restaurant industries, and up to this point, had a foundation in the domestic market, is being forced to undergo structural change from an intra national to a transnational food system, i.e., an international system that requires the formation of cooperative partnerships with food systems in other countries.

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