Japan to remove effective tariff on wheat for pasta.

Japan’s government and ruling bloc are considering eliminating the country’s effective tariff on imported wheat used to make flour for pasta, in preparation for the effectuation of its economic partnership agreement with the European Union. With Japan’s tariff on pasta from EU countries set to be removed in the eleventh year after the free trade pact takes effect, the government and the ruling coalition believe that it is necessary to lower domestic pasta makers’ procurement costs. Currently, Japan’s pasta tariff stands at ¥30 per kilogram. All foreign wheat and barley used in Japan are imported by the government. When it sells the imported grains to private flour mills, effective tariffs are added to the sale prices, in order to protect domestic wheat and barley producers.