Journal of Agribusiness 20,1(Spring 2002):67S83 © 2002 Agricultural Economics Association of Georgia Meat Trade Liberalization and Soybean-Rapeseed Competition in the Japanese Market

This study identifies variables which increase Japan’s imports of canola (soybeans) at the expense of soybeans (canola), and quantifies their impacts by estimating an import demand model. A key finding is that lower Japanese meat production tends to increase rapeseed imports while lowering soybean imports. Thus, Canada bene-fited from U.S. and Australian efforts to open Japan’s market for imported beef, since the vast majority of Japan’s canola imports are from Canada. Key Words: canola, meat trade liberalization, rapeseed, soybeans Japan is the single largest importer of soybeans and rapeseed, accounting for approx-imately 19 % of world soybean imports between 1972 and 1994 (78 % of which was supplied by the United States) and 40 % of world rapeseed imports (almost all of which was supplied by Canada). Soybeans and rapeseed dominate oilseed crush in Japan, accounting for just over 90 % of all oilseed imports from 1979 onward. How-ever, the improved rapeseed varieties (known as canola) have emerged as a strong competitor against soybeans, as Japan’s soybean imports have stagnated in recent years while rapeseed imports have continued to grow (figure 1) [Japan Oil and Fa