Bridges Weekly Trade News Digest • Volume 12 • Number 23 • 25th June 2008
South Korea to Resume Limited US Beef Imports; Protests Continue
The South Korean government said on Monday that it would resume limited imports of US beef. The statement came amid continued public backlash against the product, which many South Koreans fear may be tainted with mad cow disease.
In a new agreement announced over the weekend, Washington promised Seoul that it would not export any beef from cattle older than 30 months. Livestock below that age threshold are considered less likely to carry mad cow disease.
In a deal concluded in April, Seoul had agreed to accept US beef exports of cattle of all ages, with few restrictions. But following weeks of intense protests sparked by South Koreans’ health concerns, trade officials from the two countries held a series of intensive meetings last week to take another look at the April agreement.
Under the revised deal announced over the weekend, the US Department of Agriculture will set up a voluntary system to verify the age of imported beef, and Seoul will have the right to inspect US slaughterhouses. South Korea will also be able to take action against a specific product or company if it finds that any beef has been shipped that violates the agreement. Moreover, South Korea will be allowed to refuse imports of certain cattle parts, such as brains, eyes, skulls and spinal cords, which may carry mad cow disease.
The US government has refused to completely renegotiate the April deal out of concern that in doing so it might set a precedent for other countries to back out of trade agreements. Instead, US Trade Representative Susan Schwab has described the plan as “a transitional measure, to improve Korean consumer confidence in US beef.”
However, the revised deal has attracted criticism from both sides in the trade dispute.
US lawmakers have warned that additional talks not only violate the deal signed in April, but could also jeopardise congressional approval of the bilateral trade agreement that the two countries inked last year. Democratic Senator Max Baucus argued in a statement that there is “no scientific proof for Korea’s claim that beef from older cattle pose a health risk.”
Baucus went on to warn that “the implications of this agreement set an unfortunate precedent for US beef trade with Korea and other countries.”
Meanwhile, despite the announcement of the revised accord, 10,000 demonstrators again took to the streets of South Korea over the weekend to express their opposition to imports, even from younger cows as per the updated agreement. Protest leaders argued the new accord does not go far enough to address their concerns and demand a complete renegotiation of the bilateral accord.
South Korean President Lee Myung-bak publically apologised last Thursday for the controversial US beef import agreement. He went on to replace his chief of staff and seven other senior presidential secretaries in an effort to renew confidence in the administration. Lee, who took office in February, garnered widespread public support during his election campaign by promising to strengthen ties with the US and reinvigorate the slowing economy.
South Korea, previously the third-largest market for US beef, banned US imports in 2003 after the first case of mad cow disease was discovered. While the administration that preceded the Lee government allowed imports of beef from cattle younger than 30 months, it suspended shipments in October 2007 because of bone chips found in the imports.
ICTSD reporting; “US senators say additional beef talks violate April deal,” BILATERALS, 24 June 2008; “SKorean president pans illegal protests,” THE ASSOCIATED PRESS, 23 June 2008; “Doubts in South Korea halt deal to restart U.S. beef imports,” REUTERS, 23 June 2008; “S. Korea, US agree on beef deal; protests continue,” THE ASSOCIATED PRESS, 22 June 2008; “South Korean President begins Government shakeup,” VOA NEWS, 20 June 2008.