May 3, 2007

Canada beef may re-enter South Korea soon

South Korea is likely to lift its three-year ban on beef exports from Canada which could pave way for a free trade deal between two countries, Canada's foreign minister said.

This positive outlook follows after South Korea allowed the first shipment of US beef last week subsequent to a ban in December 2003 over mad cow concerns. Seoul and Washington reached a free trade deal on April 2 that could add US$20-billion to their annual US$72-billion two-way trade.

Foreign Minister Peter MacKay said South Korea is "very close" to lifting any further restrictions on Canadian beef.

MacKay said beef and a free trade deal were not directly linked but added on a forthcoming free trade agreement but Canadian officials will ensure the current beef row will be resolved in the "very near future".

The World Organisation for Animal Health (OIE) in March recommended in a preliminary ruling that Canada will be categorised as a "controlled risk" country for mad cow disease. The final verdict is expected to be issued in late May.

In May 2003, South Korea banned beef imports from Canada following cases of mad cow. In December that year, Seoul also banned imports from the United States after a cow tested positive for the disease.

South Korean and Canadian negotiators last week met in Seoul for the 10th round of talks for a free trade deal.

MacKay and South Korean Foreign Minister Song Min-soon has vowed to step up efforts to reach a free trade deal.