April 3, 2009

Seoul has called on Ottawa to hold another round of talks in June to resolve tensions surrounding South Korea's ban of beef imports from Canada, a senior government official said Thursday (Apr 2).

Talks have been called for late June to allow both sides to exchange views on the sensitive issue that may lead to a full-blown trade dispute, said Agriculture Minister Chang Tae-pyong.

Chang said South Korea may have to import Canadian beef in the long run, but domestic concerns on food safety has made the decision difficult particularly since Canada have had 15 cases of mad cow disease so far.

Canadian officials want a speedy resolution and the matter could go to the World Trade Organisation (WTO), which will place South Korea in a difficult situation, the Minister said.

Chang said if South Korea gives in over the dispute settlement process, other countries may soon make similar demands.

Officials at the farm ministry, however, claimed it was too early to say South Korea would lose any potential legal dispute.

An industry expert said if the case is referred to the WTO, the government will take all necessary measures to protect South Korea's national interest.

South Korea is planning to send a mission to Canada to inspect the North American country's cattle and beef industry, including its feed system.

South Korea banned Canadian beef imports in May 2003 after Canada confirmed its first mad cow disease case.

In addition, Chang said the domestic pork and dairy sectors may be damaged if the FTA with the EU is signed, but countermeasures will be established to alleviate local concerns and the deal could be used to gain access to the EU market.