1). Three main types of tea are drunk in Japan. These are green tea, oolong tea and black tea. All are made from the leaves of the same varieties of the camellia family. The differences in taste depend on the degree of fermentation at the manufacturing stage, which results in unfermented tea (green tea), semi-fermented tea (oolong tea) and fermented tea (black tea). On this occasion we focus only on unfermented, i.e. green, tea.

2). The first book devoted to the subject of tea was published in China during the Tang Dynasty. This described how a legendary god of ancient China considered the forefather of traditional Chinese medicine scoured the countryside testing the medicinal effects of plants and barks, confirming the medicinal effects of tea. This is thought to be because tea was used as a medicine in ancient China.

3). Tea was said to have been first introduced into Japan by monks from China, who brought it as a medicinal drug, during the Heian period (794-1192). Tea then came to be used by Sen no Rikyu and numerous other tea masters in the tea ceremony, becoming as much a part of the image of Japanese culture as the simple yet elegant tea ceremony itself, and tea is now a part of the everyday lives of the Japanese.

4). Green tea appears to have the following eight beneficial effects:

• a.) Prevention of cancer: The catechin in green tea serves to inhibit cancer.
  
• b.) Antioxidant effect: Protects the body from active enzymes and lipid peroxidation.
  
• c.) Inhibits rise in blood pressure: Inhibits the action of enzymes that cause blood pressure to rise.
  
• d.) Anti-cholesterol effect: Inhibits cholesterol and prevents arterial sclerosis.
  
• e.) Lowers blood glucose level: Also acts to reduce blood glucose levels.
  
• f.) Antibacterial effect and prevention of food poisoning: Protects against everything from botulism to enteropathogenic Escherichia coli O-157.
  
• g.) Antiviral effect ? colds and AIDS: Tea is more effective than over-the-counter mouthwashes.
  
• h.) Prevention of dental caries and halitosis: Fluoride and catechin prevent dental caries and halitosis.
  
  

Green tea also contains more vitamin B and vitamin C, which creates a fairer complexion, than other teas. Recent studies have in addition shown that green tea rejuvenates and prevents Alzheimer�fs disease by curbing active enzymes, and contributes to weight loss due to its synergistic action with other active components.

5). The key issue, however, is how people who drink tea perceive of these effects and the efficacies of tea. For example, no one stops brushing his teeth and relies simply on tea because tea can prevent dental caries. The main way to prevent dental caries is by brushing one�fs teeth, and tea simply has a supporting role to play. The anti-cancer effects of tea are likewise secondary.

6). Imports and exports of green tea are as follows

a) Exports (from Japan)

	1999	2000	2001
U.S.A	3,502	2,992	2,690	(26.8%)
Singapore	1,019	1,806	1,483	(14.8%)
Other	6,568	5,995	5,848	(58.4%)
Total	11,089	10,793	10,021	(100%)

"Other" includes countries such as Chinese Hong Kong, Canada, Germany, Taiwan, Thailand, France and Australia. A fairly large proportion of exports are thus destined for industrialized countries.

b) Imports (to Japan)

	1999	2000	2001
China	24,420	33,727	46,296	(93.2%)
Vietnam	2,072	2,664	1,775	(3.6%)
Brazil	740	1,250	708	(1.4%)
Taiwan	1,205	649	231	(0.5%)
Other	1,287	667	621	(1.3%)
Total	29,058	38,957	49,631	(100%)

Source: Japanese Ministry of Finance trade statistics

Unit: US$1,000

Imports of green tea are used mostly for low-grade tea.

7). Japanese supply and demand for green tea in terms of supply is as follows:

	Output	Exports	Imports	Domestic demand
1996	88,700	428	10,824	99,096
1998	82,600	652	6,399	88,347
2000	89,300	684	14,328	102,994

Source: Japanese Ministry of Agriculture, Forestry and Fisheries and Japanese Ministry of Finance Trade Statics

Unit: Tons

8). Japanese consumption of green tea per capita was on the decline due to the diversification of diets and competition from a variety of other drinks. Recently, however, the trend has been reversed, and there has been sharp growth in output of green tea sold in cans and PET bottles. Per capita consumption in 2000 was 811g.

9). In Japan, tea is imported in the form of tea leaves, which are rubbed, dried and sold at stores. Blending, extraction and bottling takes place at plants in Japan.

10). There are no import quotas or other restrictions on the importing of green tea. As green tea is not covered by the Plant Quarantine Law but instead by the Food Sanitation Law, notification and inspection are required. Green tea is covered by the "blanket notification" system, which means that provided that the place of processing, ingredients and processing method are the same, tea can be repeatedly imported for one year each time using a copy of the notification submitted on the first occasion. If the quality or constituents need to be tested for transactional reasons, the Agricultural, Forestry and Fishery Products Inspection Institute may be used. Import inspections must be undergone on each occasion.

11). Imports of green tea from China accounted for 93.2% of the total in 2001. When imported on such a scale and with green tea being an agricultural crop, it is natural to be concerned about the possible presence of residual agrochemicals. Imports are therefore checked for the presence of residual agrochemicals to ensure that they pass the standards required under the Food Sanitation Law. These tests normally take the form of "monitoring inspections" , which are sampling inspections of 5% of the volume notified by the importer. If a shipment fails a monitoring inspection, the inspection rate for the same food from the same area of production is raised from 5% to 50%. If a shipment again fails an inspection, the food importer is required to undergo an "ordered inspection" . If a shipment fails an ordered inspection, import is halted and the shipment disposed of or shipped back. To date, no green tea imported from China has been found to contain residual agrochemicals in excess of the prescribed maximum according to quarantine monitoring surveys and tests conducted by importers. Although DDT residue (0.34ppm) in excess of the limit specified under the Food Sanitation Law (0.2ppm) was detected in the past, this high value was a result of the analysis of the tea leaves themselves rather than the liquid extracted by boiling the tea in water, and it was concluded that the quantity that dissolves into the water and is drunk would be so small that it would not exceed the allowed maximum. However, there occasionally appear reports in the Chinese press of agrochemical residue being found in tea leaves. As green tea is drunk every day in Japan, reading an article stating that only just over 43% of tea passes residual agrochemical standards does make one somewhat concerned whether it is safe to drink.

There is, however, a possibility that imports contain traces of agricultural chemicals such as DDT and BHC whose use is forbidden in future. Importers should therefore raise their inspection standards, while official bodies such as the Ministry of Health, Labour and Welfare should periodically publish data on inspections to reassure consumers as to the safety of tea imports.

12). Demand for green tea is projected to grow slightly due to the increasing health consciousness of consumers and strong demand for canned and PET bottled tea.