December 6, 2006

Beef to decide the future of US-South Korea FTA talks

The United States wants South Korea to accept beef with bone fragments.

The opening of US-South Korea beef market would pave way for a successful free trade deal (FTA) between the two nations, declared Wendy Cutler, assistant US trade representative and chief US free trade agreement negotiator during the first day of the fifth round of bilateral talks in Big Sky, Montana. Beef however, is not an official item of the FTA talks.

The demand came on the heels of the rejection of US beef by South Korea from Kansas and Nebraska after discovering bone fragments in them. South Korea believed the US violated pertinent rules set by the former of allowing only boneless meat. South Korea recently lifted a three-year ban on US beef imposed after a case of mad cow disease.

Earlier, South Korea ruled out the possibility of beef rejection affecting FTA talks with the US.

According to the US media, the government stance, though aggressive, reflected the interests of US ranchers and meat processors.

The two countries hope to wrap up talks before the end of March. President George W Bush would thereafter lose his fast-track trade promotion authority (TPA).

The TPA allows US negotiators to submit to Congress a free trade bill for a simple yes-or-no vote without amendments. The Congress would be given a 90-day review period before approving a trade pact.