The issue of agriculture always causes strong resistance and significant challenges because it exists at the center of human livelihoods everywhere and agriculture is directly related to people's daily life. In the talks of free trade liberalization in the WTO, in fact, advanced countries such as the U.S., EU and Japan, are still reluctant to offer a compromised plan of trade liberalization in their agricultural sectors, tariff elimination of their agricultural products and reductions in the government subsidies due to the fact that their farm lobby exercising power beyond their numbers of the work force argue that they almost always come with a loss of some jobs at home even if there are price advantages for consumers in products. Enormously contentious agricultural issues encourage us to further focus our analysis on providing the best solution for the impasse in not only the WTO talks at the multilateral level but also the FTA negotiations at regional and bilateral levels. The most common explanation for why they have remained unwilling to open their agricultural markets for the sake of the developing countries is to protect their livelihoods that have been recognized as a basis for their culture. The same phenomenon can been seen even in East Asia where a number of countries depend heavily on agriculture for their livelihoods with nearly three quarters of the world’s poor concentrated in rural areas of the developing countries. As the major country in the region, Japan is currently being forced to undertake full-fledged agricultural policy reform, including the trade liberalization in its agricultural sectors and substantial decline in tariffs of its agricultural products, especially rice, that are indispensable in allowing the developing countries in the region to improve food security, access a stable food supply, and gain the opportunity to raise income levels through their economic growth. To this end, it would be inevitable that Japan open its agricultural markets by ceasing price supports backed by tariffs on products and introducing direct income payments to compensate for income losses of farming households, who are likely to be affected by reduced prices, otherwise it remains incapable of overcoming the obstacles in the WTO and FTA negotiations. EU maintained regional market prices higher than international level through tariffs and other measures, and then managed surplus with export subsides. Due to the agricultural policy reform carried out in 1992, however, regional support prices have been decreased and direct payments to farmers have been introduced in order to compensate them for income losses. EU is thus able to supply food to consumers at a low price and guarantee international competitiveness while maintaining farmers’ income. The key to the regional development lies in efforts to undertake its agricultural policy reforms that would be not only essential for the WTO and FTA negotiations but also conducive to the poverty reduction in the region where agriculture is the main industry for the poor countries.