December 21, 2006

US cancels trade talks with South Korea

The US has cancelled trade talks aimed at establishing FTA with South Korea as the latter refused to discuss beef issue.

The US earlier threatened to block the ongoing FTA talks when South Korea expressed unwillingness to discuss issues related to US beef shipments in the talks.

The threat did not work though, as South Korea still refused to comply saying the issue should not be discussed within the framework of FTA negotiations.

Last week, US Meat Export Federation (USMEF) spokesman, Lynn Heinze said the request for formal conversations on the beef issue went on to show a commitment and confidence of being able to deliver quality product to South Korean consumers.

The two countries have been at war of words since South Korea returned three US shipments of beef claiming they did not comply with the import conditions agreed to.