Japanese Agricultural Distortions and Their Welfare Value

Using a Corden/Johnson model the welfare costs of current and future Japanese agricultural trade and production policies are evaluated for the eight major cereal and livestock commodities produced and imported in Japan. It is estimated that the net social loss in consumption and production of 1975/76 import and production distortions for the eight commodities is $@@‐@@276 million and $@@‐@@111 million respectively. If the 1985/86 Japanese farm production goals are met the net social loss in production will rise dramatically to $@@‐@@7.6 billion. The combined production and consumption net social losses of the 1985/86 plan are equivalent to 2% of Japan's gross national product.