January 16, 2007

US steps up pressure on South Korea for full market opening
 

The US beef industry leaders have been mounting pressure on South Korea, demanding Seoul open its market in full by the time a bilateral free trade agreement (FTA) is concluded.

The US wants South Korea to not only accept boneless products as initially agreed, but also bone-in US beef to restore trade to the pre-BSE levels.

The added pressure comes just days before the two countries sit down for a sixth round of FTA negotiations in South Korea as the deadline nears for them to wrap up an agreement.

Seoul stopped importing US beef in Dec 2003 following a BSE outbreak but agreed in Jan 2006 to resume buying boneless products from cattle younger than 30 months, considering them to be safe from the disease.

Subsequent US shipments were all turned away when bone chips were detected. The US officials say the discovered fragments do not pose any risks and accuse South Korea of being too rigid with rules.

The issue has complicated the FTA negotiations, which the two countries need to wrap up by the end of March in order to pass it through the US Congress before the expiry of President George W Bush's trade promotion authority, legislation requiring the Congress to give the FTA an up or down vote without seeking amendments.

In a letter written dated Jan 8, sent to US trade representative Susan Schwab and USDA secretary Mike Johanns, American beef exporters said while the immediate focus should be on getting South Korea to accept boneless beef, it was also important to add "the acceptability of bone-in beef from cattle younger than 30 months".

Also, in an interview with the weekly publication "Inside US Trade", Bob Stallman, president of the American Farm Bureau Federation warned that his organisation might withdraw support for the FTA talks unless Seoul changes its behaviour.

Stallman suggested the US should walk away from the FTA negotiations until the beef issue is resolved.