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Zero-tariff US rice imports could harm Taiwan’s rice industry, farming groups said, while urging reforms to the public grain purchasing system

As Taiwan enters the fourth round of tariff negotiations with the US, domestic farming groups issued a joint statement yesterday warning that importing cheap US rice under a zero-tariff arrangement would flood the market and cause irreversible harm to Taiwan’s rice industry.

The statement also called for reforms to the public grain purchasing system, advocating for a shift from a focus solely on quantity to a tiered pricing model that prioritizes quality.

Countries that have secured relatively low tariffs from the US, such as the UK, Japan, Vietnam and the Philippines, have fully opened their markets to US agricultural products.

In contrast, South Korea has not agreed to import US rice and other agricultural products without restrictions, and its tariff rate is at 25 percent.

As the negotiating team, led by Vice Premier Cheng Li-chiun (鄭麗君), enters its fourth round of trade talks with Washington, President William Lai (賴清德) on Wednesday said that the aim is to protect Taiwan’s national interests, domestic industries, public health and food security.

While other countries with low tariffs have opened their markets to US agricultural products, domestic farmers’ groups expressed concern over the negative impact that would have on the local agricultural industry.

Citing Japan’s experience, where the opening of its rice market severely affected local farmers, the groups said that rice should remain a non-negotiable red line in negotiations with the US.

They said that the mass importation of cheap US rice would devastate Taiwan’s domestic rice industry, contribute to rural decline and collapse the food system, leading to an irreversible disaster.

The groups also outlined the challenges faced by the industry, saying that Taiwan is the only country globally to maintain a public rice purchasing system, where the government buys rice at a fixed price regardless of quality.

This system has reached its price ceiling and does not incentivize high-quality rice production, discouraging farmers from growing premium rice, they said.

Instead of focusing solely on quantity, the system should be reformed to reward rice quality through a tiered pricing structure, offering farmers higher returns for producing high-quality rice, they said.

This would also reduce the use of fertilizers and pesticides to better protect Taiwan’s environment, they added.

Taiwan should continue expanding its rice processing efforts, including producing rice flour to replace imported wheat flour and utilizing rice in brewing, which would increase the added value of Taiwan’s rice and open up markets, they said.

The statement called on the Democratic Progressive Party-led administration to stand firm on rice as a red line in trade talks, saying that rice is a strategic crop and not a bargaining chip.

It also urged reforms to the public rice purchasing system, advocating for the introduction of tiered pricing and quality incentives, while strengthening regional contract models to assist farmers with production, processing and marketing, thereby enhancing the resilience and value of Taiwan’s rice industry.

Farmers’ markets and groups supporting the statement include Hope Market, Water Garden Organic Farmers’ Market, East City Farmers’ Market, Tri-Small Market, the Taiwan Organic Food and Agricultural Education Association, the Taiwan Green Market Association, Wan Yao Market, Hualien Farmers’ Market, Exploring Flavors of Eastern Taiwan and the Taiwan Good Rice Circle Association.

Source : taipeitimes