Branding, Trade Agreements and Competition

There is a great example of trade agreements and real competition between countries. Australian rice imports to Japan.

Japan has accepted the quota for importing rice from Australia but instead of allowing the bulk of it to be sold in supermarkets Japan repeatedly uses this rice as aid to counties in need like North Korea.

They have followed the trade agreement to the letter but the spirit of the agreement has been breached. One could argue that North Korea benefits from the process but it stymies real competition.

Australian rice is actually the same strain. In fact in blind taste tests the very subtle palates of Japanese consumers consistently chose Australian rice as their preference over domestically grown rice.
When branded the Australian rice comes in dead last. The Japanese are extremely loyal to most Japanese products over foreign imports.


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