On March 16, thousands of chicken farmers and fruit farmers from all over Taiwan gathered in Taipei to protest trade talks between the U.S. and the R.O.C. in which it was decided the day before that the R.O.C. would resume the importation of turkey meat and four kinds of fruit.
On the same day, chickens flew up onto the wall around the American Institute in Taiwan and eggs landed upon Hsiao Wan-chang, director general of the Board of Foreign Trade, as angry farmers let their frustrations out.
This kind of "agricultural war" could actually be foreseen the year before last.
In September 1986 a meeting of the General Agreement of Tariffs and Trade was held in Uruguay. In the negotiations between the U.S. and the R.O.C., the U.S. side expressed its desire that agricultural trade would be liberalized. Although the R.O.C. is not a member nation of GATT at present, it's still a member of the international community and has to play by the "rules." The U.S. is the largest trading partner of the R.O.C. The trade surplus of the R.O.C. with the U.S. reached US$16 billion last year. It's only natural that the U.S. would now take this opportunity to request that the R.O.C. open up its agricultural products market.
The U.S. is focusing on agriculture as a means to reduce the trade deficit and thereby help to solve its own domestic problem of overproduction of agricultural products. It seeks to drop this hot potato in the hands of some trade opponents.
In the GATT negotiations held in Uruguay, no nations were willing to confront the problem of liberalizing agricultural trade head-on. Representatives from the U.S. made a special request that the R.O.C. open up the market but said to their own people that unless advanced nations, especially Japan and those in Europe, eliminate restrictions on the imports of agricultural products, then the U.S. would not open up the market completely.
According to a report by the U.S. Agriculture Department, from 1982-1984 the subsidy of various nations for their agricultural producers is as follows: Japan, 72 percent; South Korea, 64 percent; the overall European market, 33 percent; the U.S. and Canada, 22 percent; and the R.O.C., 18 percent. The higher the figure, the greater the level of protectionism. In fact the importation of agricultural products has already affected the habits of R.O.C. consumers to some extent. The longtime eating habit where rice was the staple food has changed with the recent introduction of the fast-food industry. Gifts are no longer limited to watermelons and pineapples. Now California grapes and Japanese pears are perhaps more appealing. Sunkist is served on various occasions rather than Hey Soong, which used to be people's favorite soft drink. Who knows, maybe one day children's lunchboxes will contain turkey meat, or perhaps a sandwich containing turkey meat from a fast-food restaurant!
Comparatively speaking, the level of agricultural protectionism in the R.O.C. is rather low. However, a nation's resources are limited. One area is used more while another area is used less. Just what level of protection for agriculture is most suitable to benefit the entire nation? There are many different views.
Although various countries ask other countries to open up their markets for agricultural products, they are hindered by what should and shouldn't be taxed. The U.S. and Europe are considered to have low import tariffs. Import tariffs in South Korea are rather high while those in the R.O.C. fall somewhere around midrange. It can be observed that the extent of the influence created by tariffs becomes less and less. On the one hand this reduction is due to the rise of the NT dollar. Even with high tariffs, products are still competitive when sold at NT prices. Businessmen can in turn sell at high prices. It's impossible to guard against such things.
P'eng Tso-kuei, director of the Research Institute of Agricultural Economics, says that the agricultural trade stratagems of various nations for instance are always uncertain. "We don't necessarily have to go the route of tariff or non-tariff obstacles. We should look at what the other side is doing and resist it."
Due to the continuous pressure on us to open up imports of agricultural products, the Board of the Foreign Trade in the Ministry of Economic Affairs recently established a warning visa system. Wu Torng-chuang, director of the Department of Economics and Planning Council of Agriculture, says, "This will allow the overseers in charge of the importation of agricultural products to be able to get the latest information. It's beneficial for the unit which analyses changes in agricultural imports. It's meant to act as a safeguard." No one can doubt that there are many problems in today's agricultural industry. The major factor behind this is a poor production structure created by an excess number of people in the agricultural industry. Protectionism is not the answer but is, in the process of making adjustments, a method in which we are concerned with the agricultural industry.
Professor Chiang Jung-chi once proposed the question, "At what points in time does society usually stop to think about its agricultural industry?"
One plausible answer may be: during the three daily meals, before the arrival of a typhoon, a month before voting, and when elected representatives make pledges. The amount of time people spend thinking about the agricultural industry is not a lot, but the importance of the industry has never waned.
Should the agricultural industry be protected? Ask your stomach--it knows best.
[Picture Caption]
The large expanse of green land displays the fruits of Taiwan's agricultural development. How to solve the question of overdistribution of land in order to make large-scale production will be the next battle to confront.
Farmers take to the streets to request that the R.O.C. government forbid imports of U.S. turkey and fruit. Does it mean that people should be protected simply because they protest? It's a question worth thinking about. (photo by Ch'iu Yun)
Agricultural technology is improving continually. Naturally, the time of harvesting is a happy event, yet the overproduction of rice has shifted the responsibility of buying up the surplus on the shoulders of the government.
Taiwan is a "kingdom of fruit." At present, the foreign fruit trade is still an export surplus.
Imported fruit has appeared in abundance on the domestic market. Not only is the profit of local farmers affected but consumer's habits have changed as well.
Farmers take to the streets to request that the R.O.C. government forbid imports of U.S. turkey and fruit. Does it mean that people should be protected simply because they protest? It's a question worth thinking about. （photo by Ch'iu Yun）
Agricultural technology is improving continually. Naturally, the time of harvesting is a happy event, yet the overproduction of rice has shifted the responsibility of buying up the surplus on the shoulders of the government.
Agricultural technology is improving continually. Naturally, the time of harvesting is a happy event, yet the overproduction of rice has shifted the responsibility of buying up the surplus on the shoulders of the government.
Agricultural technology is improving continually. Naturally, the time of harvesting is a happy event, yet the overproduction of rice has shifted the responsibility of buying up the surplus on the shoulders of the government.
Taiwan is a "kingdom of fruit." At present, the foreign fruit trade is still an export surplus.
Imported fruit has appeared in abundance on the domestic market. Not only is the profit of local farmers affected but consumer's habits have changed as well.
Intended for display in a residence's main hall, this work features quality materials, and a solid structure. （photo courtesy of Chinese Floral Arts Foundation）
