Partial Reform of World Rice Trade: Implications for the U.S. Rice Sector

This paper analyzes the consequences for the United States of a partial reform of world rice trade. It is argued that likely trade reform would occur in the japonica rice producing countries of Japan, South Korea, Taiwan, and the European Community. Multilateral rice trade liberalization would have strong effects for medium grain rice in the United States. The strength of these effects might not be felt for a couple of years after the liberalization has begun because of minimal Japanese imports in the first couple of years of liberalization. U.S. rice millers will likely benefit more than producers. California producers would be the major beneficiaries of more open world rice markets.