International Trade:

Competition for Japan's High Value Agricultural Market

NSIAD-90-134: Published: Mar 30, 1990. Publicly Released: Mar 30, 1990.

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Pursuant to a congressional request, GAO reviewed market development activities of nine foreign competitors in Japan's agricultural market.

GAO found that foreign companies: (1) spent considerable time and money to develop markets for their agricultural products in Japan; (2) expected to spend between $2 million and $2.5 million for the first 1 or 2 years to develop the market, and about $1 million for follow-up surveys, additional market research, and evaluation; (3) had to meet Japanese consumer standards for uniqueness, convenience, ingredients, and packaging; (4) used trade assistance and consumer education in developing consumer demand; and (5) gained greater access to the Japanese market by using nontraditional importation and distribution methods.

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