In the international agricultural trade, food supply has grown increasingly concentrated around developed countries and a few middle-income countries such as Brazil, which serve as food exporters to a majority of developing countries. However, food exporting countries have disadvantages in agricultural production such as soil erosion, ground water depletion and salinization. Thus the food trade patterns, as they stand, will not be sustainable.
This round of WTO negotiations is called the Doha Development Agenda. Yet Brazil, a major exporter, is representing developing countries in the negotiations, thus opinions of a great number of foodimporting developing countries have not been reflected. Some less developed countries have expressed concern over the erosion of preferential tariff margins by way of tariff reductions by developed countries. Furthermore, the terms of trade of food-importing developing countries are worsening due to increase in international food prices caused by the reduction of agricultural protection by developed countries. In order to cope with this situation, however, food-importing developing countries' terms of trade need to improve by helping those countries to increase agricultural productivity or exports of valueadded products, and thereby eliminate tariff escalation which discourages imports of value-added products in developed countries. Developing countries may utilize special and deferential treatment such as creation of subsidies for transforming economy or industry, which are not subject to reduction commitments. Efforts like these would be more advisable from a long-term perspective than maintaining preferential tariff margins. But we should keep in mind that excessive special and deferential treatment will do more harm to developing countries since they trade with each other. Japan needs to transform its agricultural protection from tariffs to direct support. This will increase access to opportunities for developing countries. Developed countries should also make financial contributions to encourage sustainability in agriculture in developing countries.