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(Role and current situation of agricultural co-operatives in Japan)

Mr. Chairman, first I would like to talk about the role and the current situation of agricultural co-operatives in Japan.

Agricultural co-operatives in Japan are non-profit organizations whose goal is to encourage mutual assistance among farmers. Their principal mission has been advising co-operative members on the joint shipment of produce, the joint purchase of production materials and farm financing. They have played a significant role in improving agricultural productivity and the socio-economic status of farmers.

In recent years, however, agricultural co-operatives, agriculture and rural areas are facing many problems including: urbanization, rural areas mixing with urban populations, a lack of successors engaging in agriculture, an increase in abandoned farms, an increase in imported agricultural and livestock products, a decrease in the consumption of rice and other traditional products due to diet changes, and sluggish agricultural income.

Furthermore, as Japan plays a more important role in global society, we will have to enter full-scale negotiations in the WTO to determine agricultural trade rules in the 21st Century.

Japanese agriculture, rural communities and agricultural co-operatives face fierce competition because of various deregulations including the IT revolution and the liberalization of financial services.

Given the drastic socio-economic changes occurring in Japan, it is essential for the agricultural co-operatives, as autonomous mutual-assistance organizations for farmers, to achieve sound management in order to support their farming activities and livelihood.

For that reason, the co-operatives, at "the 22nd National Congress of the Japan Agricultural Co-operatives", approved going back to such basic values as improving local farming through instruction and streamlining organizational systems. Currently they are actively undergoing a thorough reexamination of their projects and organizations.

The Japanese government has also revised the Agricultural Co-operative Act, and taken measures to support these agricultural co-operatives' reforms so that they can achieve sound management. The measures are allowing farm corporations to become members equal to individual farmers, tightening regulations to prevent permanent trustees from holding multiple positions and tightening up the audit by the Central Union of the Agricultural Co-operatives which is a leading organization of Agricultural Co-operatives.

We hope that these measures and the voluntary efforts of the co-operatives will realize truly effective reforms.

We should continue to maintain the fundamental concept that the mission and role of the agricultural co-operatives will be increasingly important for the development of Japanese agriculture as well as improvement in the status of the farmers.

(Japan's international cooperation)

Mr. Chairman, I would like to move on to the topic of international cooperation in the agriculture, forestry and fisheries industries.

I believe that people around the world must give equally serious consideration to the issues concerning food, agriculture, forestry and fisheries. Japan has always had a fundamental policy of promoting homegrown products, and insists on the importance of a proper balance of imports and domestic stockpiles in order to insure food security. From the point of view of food security in particular, we believe that it is important to grow at least staple food in Japan.

Japan is now the largest supplier of ODA in the world. The food industry and the agriculture, forestry and fisheries sectors are the key industries for developing countries to promote their self-economic development, as well as to produce and ensure food for their people. Japan, then, has been actively implementing technical and financial cooperation in various areas.

Above all, the co-operatives play an important role in developing countries for their self-help efforts to produce food, sustainable rural development and improvement of their living standards. Considering the importance of this role, Japan extends funds to ICA training programs to better organize agricultural and fisheries co-operatives and to train women leaders in the agricultural co-operatives.

In addition, we are implementing various technical co-operations related to the co-operatives. We commit ourselves to aggressively promote these programs.

(WTO agricultural negotiations)

Mr. Chairman, next, I would like to talk about Japan's position on WTO agricultural negotiations. I believe that when we consider issues on food, agriculture, forestry and fisheries, we should not focus only on the economic aspect. Rather, I believe we should keep in mind that agriculture has multifunctional roles such as land preservation, water supply conservation, food security, ecological preservation, the maintenance and vitalization of rural communities other than supplies food and fiber.

Since agriculture is a key industry in developing countries, we must pay full attention to this multifunctionality of agriculture. In order to maintain and maximize this function, I believe it is necessary to conduct appropriate domestic support and border measures to encourage the domestic production to some extent.

Last November, at the WTO Ministerial Conference in Doha, we successfully launched a new round covering broad and well-balanced negotiating agenda. Agricultural negotiations have become a part of the new round.

Our opinion that we should take note of non-trade concerns, and should not prejudge the outcome of negotiations, was incorporated in the agricultural part of the ministerial declaration.

I believe that "the coexistence of various types of agriculture" should be the fundamental goal of agricultural negotiations. It is also important to ensure the multifunctionality of agriculture and food security.

(Conclusion)

Mr. Chairman, in my view, the ICA has developed into the world's largest private organization for co-operatives due largely to the fact that the co-operatives are strongly rooted in the spirit of self-help and cooperation, and work as grass-roots organizations that pursue the establishment of a fair socio-economic order.

I sincerely hope that the ICA can fully play its role worldwide to strengthen and further promote cooperatives' activities, thereby realize more development of cooperatives in the respective countries.

Last, but not least, I hope that the ICA Regional Office for Asia and the Pacific will continue to utilize its experience and expertise in an effort to solve problems in the region.

Thank you for your attention.