The objective of the following strategy is to overcome, if not remove, market access barriers to American cut-flower exports to Japan . The strategy takes a two-track approach, addressing both commercial and policy solutions. The commercial strategy is designed to develop options for increasing the chances of successful entry into the Japanese market given Japan ’s current customs practices. The policy strategy is designed to pressure Japan to lower its agricultural trade barriers.

Establishment of an international problem-solving coalition will be key to the success of the policy strategy. However, the strategy focuses on building support from the ground up. Support from domestic agricultural communities will help persuade the U.S. Department of Agriculture (USDA) and the U.S. Trade Representative (USTR) to act on behalf of American growers.

A positive uniform message will be developed to encourage cooperation instead of alienation of Japanese interest groups.

Track 1 – Commercial Solutions

The following commercial solutions involve actions that can be taken immediately to help cut-flower growers gain access to the Japanese market in spite of Japan ’s market access barriers.

1. Identify and utilize the expertise of Japanese freight forwarders/distributors.
2. Present the cut-flower issue to the Horticultural and Tropical Products Division of USDA’s Foreign Agricultural Service (FAS) and propose a pilot technical assistance or on-site pre-inspection program funded by USDA to assist U.S. cut-flower exporters in overcoming Japanese barriers. This pilot program might include a Mutual Recognition Testing Program, in which Japan would agree to recognize inspections conducted by U.S. officials that are based on Japanese SPS standards. Although the United States deems these standards arbitrary and unjustified, such a program would reduce the cost of employing a Japanese inspector to conduct pre-inspections.
3. Solicit USDA funding to adapt Australian technologies to U.S. needs. Establishing cooperative relations between U.S. and Australian growers can also help in carrying out the longer-term policy strategy for pushing Japan to reduce its market access barriers.
4. Solicit USDA Marketing Access Program (MAP) funding to promote U.S. cut flowers in international markets. SDPF growers can use these funds to generate greater Japanese demand.

These commercial solutions will not guarantee long-term market access because the Japanese will create different barriers to prevent the importation of flowers. However, these solutions may help U.S. exporters gain temporary access to the Japanese market, and as Japan erects new barriers, these continued attempts at exporting will help make the case that Japan obstructs cut-flower imports. The attempts will also help exporters gain additional experience in Japan and help establish a market presence for American cut flowers in Japan .
   

Track 2 – Policy Strategy

The goal of the policy strategy is to persuade U.S. and foreign governments to advance the cut-flower issue with Japan . However, multiple sub-strategies should be implemented simultaneously to push Japan toward changing its agricultural inspection and customs procedures. Brief explanations of the sub-strategies are listed below. Each is explained in further detail beginning on page 23.

1. Coalition Building - Coalition Against Agricultural Barriers to Trade (CAABT)

Coalitions can create support among American and international cut-flower and non-cut-flower agricultural producers, as well as Japanese interest groups. Three different coalitions will be established.

a.      CAABT will focus strictly on Japanese market access for American cut flowers.

b.      The National Committee of Agricultural Associations Against Barriers to Trade will serve as a coordinating committee to advance the interests of all American agricultural exporters.

c.      The International Coalition Against Agricultural Barriers to Trade (ICAABT) will work with international cut-flower and other commodity groups.

2. Legislative Strategy

The legislative strategy will target local, state and national governments to generate a strong and broad support base. In the first year, CAABT will work with the National Committee to lobby for the formation of a congressional committee to investigate agricultural barriers to trade.

3. Media Strategy

CAABT will use free and paid media instruments, such as letters to the editor, news reports, and advertisements to publicize the difficulties in entering protected markets. Information on the effect of closed markets on local jobs, economies and communities will also be disseminated.

4. Negotiation Strategy

CAABT’s negotiation strategy identifies the interests and objectives of all who hold a stake in opening Japan ’s agricultural markets. It also outlines approaches U.S. negotiators can take in discussing market liberalizations with the Japanese.

1. International Strategy

ICAABT will use international and foreign domestic media outlets to focus attention on Japan ’s agricultural trade barriers. ICAABT will also raise its concerns with appropriate foreign government officials.

Coalition Building  

The SDPF is a small entity with limited resources. By building both domestic and international coalitions with members from all agricultural sectors, SDPF will increase its chances of persuading the United State Department of Agriculture (USDA) and the United State Trade Representative (USTR) to take action against Japan ’s agricultural import barriers. The international coalition will also help spur other governments to push Japan towards liberalizing its agricultural import regime.

The Coalition Against Agricultural Barriers to Trade (CAABT) will serve as the foundation of a three-tier coalition. Separate yet similar domestic and international campaigns will guarantee a strong and focused effort at each tier. Membership in one tier will not imply membership in the other two, however some overlap in membership is expected.

Coalition Against Agricultural Barriers to Trade (CAABT )

CAABT will focus on addressing Japanese barriers to trade in cut-flowers. National recruitment efforts will target floricultural growers and associations across the country.

CAABT will work with domestic cut-flower and related floricultural growers and associations to increase the visibility of the cut-flower industry within the United States . A member-elected board of directors will head CAABT’s efforts. During the initial organizational period, member meetings will be held to report on the progress of CAABT, as well as to mobilize members on the various tasks identified in the media, legislative and international strategies.

The following groups will be targeted as potential members and supporters of CAABT’s Japanese initiative.

• Floriculture Groups

Many floriculture growers may be hesitant to join CAABT because they have not considered exporting and may not see how CAABT’s activities will help them. Accordingly, CAABT’s recruitment efforts will need to be carefully orchestrated.

1. CAABT should first work with growers from the states that produce large quantities of flowers (see Exhibit 14) since these growers are most likely to be sympathetic to CAABT’s cause.
2. Next, CAABT should send a recruitment letter (Exhibit 6) to all other U.S. floriculture growers. This packet will include membership information and a membership application.
3. Recruitment efforts should also target floriculture associations, such as the California Cut Flower Commission and the Society of Horticulturists. These groups bring experience and membership that will be useful in mobilizing the cut-flower industry.

• Government Agencies

1. Government agencies should not be members of CAABT, however, strong government support will be crucial to the long-term success of CAABT’s efforts. Accordingly, CAABT will keep USDA and USTR informed of its campaign activities and request that the two agencies take action to open Japan ’s protected markets. (Exhibit 8 provides a sample letter to USDA and USTR.)
2. Support from individual state departments of agriculture and governors will also be sought since these state offices can help introduce the issue at the national level.

• Other Groups

1. CAABT will explore the possibility of recruiting larger companies to its cause. Companies with identifiable brand recognition (e.g. Dole) would insert household names into the issue, thereby increasing both national and international concern for CAABT’s cause.
2. Florimex will be recruited as a CAABT member. Florimex can provide buyer contacts and assist the SDPF and CAABT in expanding exports to the Japanese and other international cut-flower markets.

The National Committee of Agricultural Associations Against Barriers to Trade

This Committee will coordinate the lobbying efforts of all American agricultural producers that export to Japan . The Committee will work primarily with these associations’ Washington D.C. staffs to press Congress, USDA and USTR to make Japan ’s agricultural trade barriers a priority on the U.S. agricultural agenda. The sample recruitment letter provided in Exhibit 7 targets agricultural associations and interest groups that face the same Japanese trade barriers that cut-flower exporters face. CAABT members can use their membership in national associations to pressure the associations to work with CAABT or at least endorse its efforts.

The International Coalition Against Agricultural Barriers to Trade (ICAABT)

ICAABT will strengthen CAABT’s U.S. campaign by bring international attention to Japan ’s agricultural import barriers. ICAABT will spread the message that all foreign companies, not just American companies, face discriminatory barriers to agricultural trade in Japan . This coalition will focus on opening the Japanese agricultural market for all countries and products. This coalition will build on the efforts of CAABT and the National Committee, but will not be involved in the U.S. domestic campaign.

Legislative Strategy

The legislative strategy is designed to build state and national government support for addressing the U.S.-Japan cut-flower issue. Support from key legislators will help move this issue from the local/state level to the national level. The following actions build on each other.

1. Building Bipartisan, Multi-State Legislative Support. Such support will help make Japan ’s agricultural trade barriers not just a California concern but also a national one. California state legislators and congressional representatives sympathetic to agriculture, free trade and small business issues are listed in Exhibits 12 and 13. Exhibit 14 shows cut-flower production in each state. Legislators from the lead producers will be targeted first.

• Key California Delegates

o        U.S. Senator Barbara Boxer [D-CA]

o        U.S. House Representatives

o        Representative Sam Farr [D] - Monterey

o        Representative Randy "Duke" Cunningham [R] - Carlsbad

o        State Assembly

o        Assemblyman Howard Kaloogian [R] - Carlsbad

o        Assemblyman Fred Keeley [D] - Monterey

o        State Senate

o        Senator William Craven [R] - Carlsbad

o        Senator Bruce McPherson [R] - Monterey 

• CAABT should request that one of California ’s congressional representatives become an advocate for cut flowers. Such an advocate or spokesman will give CAABT an inside path to congressional members who can help place the cut-flower issue on the U.S. agricultural agenda.

• CAABT should also organize a congressional "Dear Colleague" letter campaign (see Exhibit 10) and encourage members of Congress to send letters to the White House, USTR, and USDA.

2. Meeting with Legislators. CAABT members and families will meet with congressional and state elected officials to drive home the far-reaching impact these barriers have on family farms, jobs and the overall economic situation in members’ district. Members will be given a fact sheet that lays out the economic importance of agriculture (and cut flowers) in the member’s district (see Exhibit 9). These meetings will help CAABT members identify what is needed to gain the support of their legislators.

3. Creating an Image for Cut-Flower Growers. An image of the plight of cut-flower growers can go a long way toward consolidating support for tackling the Japan problem. This image could be created at a Washington D.C. , "Capitol Day" event, which would include:

• A joint-press conference with elected officials and growers on the front steps of Capitol.

• Meetings with each member of Congress, at which a fresh flower and a legislative information kit will be distributed. When the Congressmen see the flower they will be reminded of "the plight of cut-flower growers."

4. Establishing a Congressional Caucus on Agricultural Barriers to Trade. The caucus would serve as a voice for cut-flower and other commodity growers. Caucus members would introduce legislation, make speeches and help create appropriate agricultural trade policy. The caucus would also advance the establishment of a sub-committee on foreign agricultural trade barriers (see below).
5. Establishing a Congressional Sub-Committee on Foreign Agricultural Trade Barriers. The sub-committee could be established within the House Committee on International Economic Policy and Trade or the Senate Committee on International Economic Policy and Trade. Its mandate would be to investigate and pass resolutions on agricultural barriers to trade. The mere act of attempting to establish such a committee would involve testimony from agricultural producers and exporters that can be used to bring media attention to Japan’s trade barriers (see Exhibit 11 for sample testimony). Sub-committee resolutions would send a clear and direct message to the Japanese government that import barriers to cut flowers will have to be addressed. (See Exhibit 16 for a sample press release announcing the sub-committee.)

6. Forming a Political Action Committee (PAC). A PAC will help CAABT gain effective access to elected officials. This is an option that should be explored at a later date, after other strategies have been pursued.
 

Media Strategy

CAABT should focus first on gaining local media attention that will help generate strong support from local communities. We want local elected officials to promote agricultural exports for rural communities and jobs. The message conveyed should be: "Exporting is good for local business and agriculture. Without international markets, the local business community is hurt." Editorials, speeches, and debates covered in the press can all help increase the visibility of agricultural export issues.

Paid advertisements are expensive and should be considered only after free media options have been exhausted. Free media is generally effective in getting out an organization’s message. However, paid advertisements are sometimes better at targeting specific audiences.

The first step in the media strategy is to issue a press release announcing the formation of CAABT (see Exhibit 15). Sample question and answers (see Exhibit 17) will be developed as well.

Local Media

1. Letters to the editor, editorials and news reporting. These free media pieces should be used to help initiate local debates on the cut-flower issue in California and Florida . Print media, as well as television and radio should be targeted. Media coverage of interviews and public debates will help get the word out to a wide audience and can highlight the message that agriculture has a large impact on local communities, economies and jobs. (See Exhibit 18 for a sample letter to the editor that is designed to appeal to local and state readers.)

Free

• Reporting on local radio and television channels (ex: KFMB, KNSD, KPBS) will help create local awareness.
• Further attention can be gleaned from public debate among growers, foreign interests and elected officials on the pros and cons of forcing Japan to comply with WTO SPS standards.

Paid

• Radio and television advertisements might use a congressional or local grower spokesperson.

2. Feature Stories. Stories in agricultural association magazines and newsletters can explain how barriers to trade impact individual growers.

3. Monthly Newsletter. CAABT will publish a newsletter to update members on its progress. The newsletter will keep interest groups and the media up to date on CAABT's activities.

State Media 

1. Media coverage of regional meetings will help elevate the issue beyond the local level. Voters need to see that agricultural trade barriers affect entire agricultural regions, not just individual growers or growing localities. State decision-makers need to hear that their constituents are concerned about global agricultural trade policy.

Free

• Radio, television and print press coverage of debates among growers, foreign interests and elected officials. These spots should include first hand accounts of growers’ export experiences.
• Letters to the editor from state agricultural leaders.
• Radio interviews with state agricultural leaders.
• Editorial board meetings to explain the impact of Japan ’s trade barriers on the cut-flower and other agricultural sectors.

Paid

• Radio and television advertisements using a congressional representative or local grower as spokesperson.
• Paid newspaper advertisements in large circulation newspapers such as the Sacramento Bee.
    

National Media 

1. CAABT should hold a press conference on the steps of the Capitol Building to announce its plans for pushing Japan toward trade liberalization.

Free

• Place stories in newspapers with national distribution to improve visibility.
• Meet with newspaper editorial boards of nationally distributed newspapers (Los Angeles Times, San Francisco Chronicle, New York Times and Washington Post). The issue must be broadly framed to include all agriculture, not solely cut flowers.

Paid

• Washington Post Op-ed page advertisement.
• National network television advertisement campaign.

2. Attend and participate in National Agricultural Conferences including those sponsored by the Produce Marketing Association (PMA) and the National Association of State Departments of Agriculture (NASDA). Press kits should be made available at these conferences and CAABT members should be scheduled for media interviews at these meetings (including interviews with association newsletter staff).

3. The following media strategies could help raise awareness of the plight of cut-flower producers, as well as to foster sympathy for them.

• Rotten produce could be laid on the steps of the Capitol building in conjunction with a press conference or Capitol Day.
• Farm families could hold a demonstration in Washington D.C.
• A press conference could be held in a field of dead produce—produce that was left to rot because export markets were closed.

Web Page

The Internet provides an inexpensive method to distribute mass amounts of information to interested parties. Without a web page, CAABT will miss opportunities to inform and educate the public on the negative impact of trade barriers to the economy.

1. Create a web page that includes:

• Issue papers
• Press releases
• Articles
• Testimony
• Speeches
• List of members and board of directors
• Coalition contact information
• The history of CAABT
• Economic data on agriculture
• Links to important web sites
• Congressional links so visitors can easily send email to their congressional representatives
• Membership information and application

Negotiation Strategy  

The negotiating strategy developed in the following pages examines U.S. and Japanese preferred outcomes, options, tactics and best alternatives to a negotiated agreement (BATNA). CAABT should use this information to prepare for interaction with Japanese and other international agricultural groups and stakeholders. Careful analysis of the information will also help CAABT anticipate support and opposition from potential coalition members, government officials and foreign interests.

CAABT would also benefit from role-playing. By imagining themselves to be Japanese cut-flower growers, CAABT members will gain a greater understanding of how these growers will react if approached by U.S. growers who want to reform Japan ’s SPS and market access regulations.

The analysis of negotiating styles (page 37) will help in preparing for both bilateral negotiations and interaction between U.S. and Japanese interest groups.

U.S. STRATEGY

Problem

The Flower Marketing Cooperative (SDPF) has not been successful in exporting cut-flowers to Japan . Indeed, the majority of SDPF cut-flower shipments faced destruction and/or perished at the port of entry because of:

• Japan ’s erratic and inconsistent application of its customs rules;
• The preferential treatment Japanese customs agents give to Japanese freight forwarding companies;
• Exporters’ inability to gain effective access to Japanese distribution channels; and
• Japan ’s excessive and non-transparent SPS standards.

Preferred Outcome

SDPF’s preferred outcome is to see Japan establish transparent, non-discriminatory and justifiable market access and SPS standards based on internationally accepted practices. Changes in Japanese SPS and market access rules combined with serious enforcement would be accepted by CAABT.

Allies

CAABT can strengthen its negotiating position by building a broad coalition of supporters including domestic and international cut-flower growers and other agricultural commodity producers. All agricultural exporters face non-transparent and unjustifiable SPS rules in Japan .

Negotiation Tactics

CAABT and USTR should acknowledge Japan ’s right to set its own SPS standards but also explain that the United States is prepared to request WTO dispute settlement review of the issue if bilateral negotiations do not resolve the issue in a timely manner. Past bilateral experiences with Japan on agricultural market access issues has not been satisfactory. So far, Japan does not seem serious about bringing its SPS standards and distribution practices in line with internationally accepted practices.

Objective Criteria

• Scientific research concerning SPS risks and quarantine procedures.
• Market access limitations – distribution.
• APHIS scientific research and publications.
• The recent U.S.-Japan WTO dispute panel ruling on varietals.

BATNA

Initiate WTO dispute settlement procedures.

JAPANESE STRATEGY

Problem
The United States Trade Representative alleges that Japan discriminates against American cut-flower exporters by forcing them to comply with excessive, non-transparent SPS standards.

In Japan ’s view, it has been cornered and "picked" on over its SPS measures. Most recently, a WTO dispute panel ruled against Japan ’s varietal testing requirements. 

Preferred Outcome
Drag out the negotiations to allow time for inevitable market reforms. Protect Japan ’s agricultural sector as long as possible.

Allies
U.S. , Australian, Dutch and other growers who have successfully exported cut flowers to Japan . 

Basic Arguments

• Japanese regulations comply with WTO and other international trade standards. Under the WTO, countries are allowed to establish their own SPS standards.
• Distribution channels, clearance procedures, and SPS measures are the same for all fresh produce imports, including cut flowers.
• Island nation.

Negotiation Tactics

• Present scientific basis for Japanese SPS rules.
• Provide examples of successful importers to demonstrate that foreigners do have access to Japanese agricultural markets.
• Enter bilateral negotiations in good faith to prove that Japan is concerned with SPS issues and wants to maintain good relations with the United States .
• Stonewall until the United States accepts a small Japanese concession.

BATNA
Do nothing. Wait for the WTO appellate panel ruling on varietal testing on apples to be heard.

If bilateral consultations fail:

• Japan should consider the prospects of losing another WTO dispute panel.
• Continue bilateral efforts, even if the United States initiates a WTO dispute resolution case.

U.S. Response to Japanese Stonewalling
U.S. and Japanese goals and tactics for the bilateral negotiation are distinctly different. The U.S. negotiating strategy will address anticipated Japanese stalling tactics. U.S. negotiators should immediately notify the Japanese that stonewalling will not deter the United States from pursuing a WTO case.

In identifying the Japanese stalling maneuvers, the United States must curb aggressive American tendencies and use Japanese communication styles to make its point. The Japanese culture depends on implicit communication and consensus, thus the United States must notify Japan in a non-confrontational manner that it will not play games. By doing so, the United States can advance its interests, while not cutting off bilateral engagement with the Japanese.

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