New Deal Opens Japanese Market To U.S. Organic Producers

By Sam Lewis

Organic equivalence agreement could bring more, cheaper food to U.S. consumers

The USDA announced an equivalence agreement has been signed between the United States and Japan in regard to organic products. Beginning on Jan 1, 2014, certified organic products in Japan and in the U.S. may be sold as organic in either country. The deal was signed in Baltimore at the Natural Products Expo East trade show — one of the largest organic products trade shows in the U.S. — on Sept 26. Signatures were made on the deal by Ambassador Islam Siddiqui, U.S. Trade Representative Chief Agricultural Negotiator, Anne L. Alonzo, USDA Agricultural Marketing Service Administrator, and Hiroyuki Kobayashi, Director General, Food Safety and Consumer Affairs Bureau.

The newly formed alliance between these two giant organic markets — combined, the U.S. and Japan’s organic markets are valued at $36 billion and continue to rise — will update access farmers and processors in the U.S. have to the organic market in Japan. The move will benefit the organic industry as a whole, by supporting job creation and business growth on a global scale. “It is a win for the American economy and sets the foundation for additional organic agricultural trade agreements in Asia. This partnership provides economic opportunities for farmers and small businesses, resulting in good jobs for Americans across the organic supply chain,” says U.S. Agriculture Secretary Tom Vilsack.

“This agreement is vital to specialty crop growers, who number more than 2,000 in California alone. These producers will be able to expand sales in a vibrant Japanese market,” says Cathy Calfo, executive director of the California Certified Organic Farmers trade group. Currently, the U.S. exports more organic goods to Japan than it imports from Japan, according to the USDA. The biggest organic goods exported to Japan are soybeans, vegetables, nuts, and specialty products like frozen meals. Imported from Japan, the U.S. receives organic green tea, sake, and mushrooms.

The agreement is similar to already established organic equivalency agreements between the U.S. and Canada, completed in 2009, and the U.S. and the European Union, completed in 2012, in its elimination of significant barriers for small and medium size organic farmers. Prior to the new agreement, organic businesses and farmers wishing to sell products in the U.S. and Japan were forced to obtain certifications according to each country’s organic standards. Subsequently, two sets of inspections, fees, and paperwork have been reduced to one, thanks to the deal.

The deal is a win-win for all parties. By abiding to one set of standards for organic goods between the U.S. and Japan, business will grow, jobs will be created, and waste will be eliminated. Only time will tell if Secretary Vilsack is right in his belief that this agreement is setting the stage for further organic equivalency agreements between the U.S. and other Asian nations.