October 7, 2010

South Korea to lift beef import limits from US
 

South Korea is planning to lift its beef import limits from the US, in order to facilitate congressional ratification of the pending free trade deal with the US.

Restricted shipments of US beef are one of the major concerns the US wants to address before ratifying the Korea FTA, signed in 2007.

Beef is not an issue covered by the Korea FTA, but Senator Max Baucus, chairman of the Senate Finance Committee which handles trade, and some other politicians have threatened not to move for the approval of the pact unless South Korea allows shipments of US beef from cattle of all ages. Montana is said to be the biggest source of beef from older cattle.

Exports are now limited to cattle under 30 months old due to fears of mad cow disease.

The US beef industry has called for a cautious approach, fearing a possible backlash in the Korean market.

South Korea was the second biggest US beef market, worth US$815 million, before Seoul banned imports due to fears over bovine spongiform encephalopathy (BSE) or mad cow disease, after a few US cases surfaced in 2003.

Seoul resumed imports of US beef from younger cattle in 2008 amid weeks of street rallies over safety concerns. Since then, imports have rebounded.

US beef exports to South Korea reached US$216 million last year, making South Korea the fourth-largest importer of US beef products. The figure for the first six months of this year was US$225 million.