December 30, 2003

South Korea Unlikely To Lift US Beef Ban

South Korea is unlikely to lift a ban on U.S. beef products despite requests from the United States. In addition, it may follow Japan's footsteps in calling for tighter guarantee measures, according to informed sources Tuesday.

A U.S. delegation, led by David Hegwood, special adviser to Agriculture Secretary Ann Veneman, is to meet Korean government officials today at 2.30 p.m., requesting for lifting of the ban, they said.

On Monday, Japan refused to ease its ban imposed after the United States confirmed its first case of mad cow disease, saying that the United States should take firmer measures to ensure its meat is free of the brain-wasting disease.

"We won't be able to decide on the ban until after we determine the cause and gauge U.S. countermeasures," a government official said, speaking on condition of anonymity.

The U.S. government has yet to make a formal request for easing of the ban, but Korean officials, expecting one, have been busy in mapping out a plausible response.

However, they worry that South Korea, the second-largest buyer of U.S. beef after Japan, may have to face the consequences of a trade dispute with the United States if it doesn't ease the import ban.

If any difference of opinion develops into a trade fracas, the United States may move to take retaliatory action against South Korean shipments of semiconductors and cars, red-hot sales items in the U.S. market, according to analysts.

If so, the country's fragile economy, mired in a recession in the first half of this year and showing signs of recovery, driven by strong exports to the United States and China, may lose steam for a nascent recovery.

South Korea, Japan and Mexico accounted for about 89% of U.S. beef exports this year.

South Korea imported $655.9 million of U.S. beef last year, according to government data.