December 10, 2010

 

US hopes for wider access to Korea's beef market

 

 

US will continue to push for wider access to the Korean beef market, although the chief US trade negotiator defended the revised free-trade deal with Korea as a "balanced agreement."

 

US Trade Representative Ron Kirk expects to see beef exports grow as "tariffs on beef are going to come down about a half" under the Korea FTA, but added, "We do have more work to do on getting full implementation of a beef protocol that's been a separate part of the free-trade agreement."

 

Korea reiterated its stance on Wednesday (Dec 8) that it would not hold talks on scrapping age limits on US beef imports.

 

"It is our government's firm position that we will stick to the 2008 agreement on beef trade," said Choi Seok-young, Korea's deputy minister for trade.

 

Beef was not discussed at last week's negotiations as Korea is adamant in its position not to allow shipments of beef from cattle over 30 months old due to fears over mad cow disease, which prompted weeks of street rallies against US beef in Seoul in 2008.

 

Beef is not an issue covered by the Korea FTA, but Senator Max Baucus, chairman of the Senate Finance Committee, has threatened not to move the FTA unless Seoul allows shipments of beef from cattle of all ages. Montana is said to be the biggest source of beef from older cattle.

 

"We've been really enhancing our ability to make not only a compelling case to Congress but also to the American public," he said, adding that the deal – the biggest since the North American Free Trade Agreement in 1994 – "involves the Chamber of Commerce, cattle growers and pork growers, but it also includes Ford, General Motors and the United Auto Workers."

 

The chamber, as well as the auto, beef and port industries, has expressed support for the deal, which has been pending for more than three years over US demands for wider access to the Korean auto and beef markets.

 

The new deal calls for a delayed phase-out of auto tariffs, among others, in return for Washington's concessions on pork and medicine.

 

The US exported 5,878 automobiles to Korea last year, while Korean auto shipments to the US totalled 476,833, according to the UAW.

 

The US beef industry also did not want to touch on the sensitive beef issue to avoid jeopardising the rapid increase in exports to Korea since 2008, when Seoul lifted the ban on shipments imposed after the outbreak of mad cow disease in the US.

 

Baucus has reserved judgment on the deal, saying he was "deeply disappointed" that the deal "fails to address Korea's significant barriers to American beef exports."

 

US President Barack Obama Saturday (Dec 4) said he will work with Congress for the deal's ratification, and added that he will "continue to work with our Korean partners to fully implement this agreement and build on our progress in other areas, such as ensuring full access for US beef to the Korean market."