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South Korea says agrees on U.S. beef imports
2008-04-17
South Korea on Friday agreed to open up to U.S. beef, boosting prospects for a sweeping trade deal and a Camp David summit between leaders of the two allies later in the day. The beef import agreement removes a big obstacle to U.S. congressional approval of the trade deal, the biggest since the North American Free Trade Agreement went into force in 1994, and should brighten the atmosphere as leaders prepare to discuss North Korea's nuclear ambitions, trade and military cooperation. "We are working on fine-tuning details and an official announcement will be made at 6 p.m. (0900 GMT)," a farm ministry statement said. But it was not clear whether South Korea had accepted U.S. demands that it completely open up its market or whether it would maintain some restrictions. The agreement comes just hours before South Korean President Lee Myung-bak, in the United States on his first overseas trip since taking office in February, meets U.S. President George W. Bush at the Camp David presidential retreat. U.S. lawmakers have said a landmark trade pact the two countries struck about a year ago would be scuttled unless South Korea opened its market fully to U.S. beef. Analysts have estimated the trade deal, which needs approval by legislatures in both countries, could boost their two-way, $78 billion annual trade by about $20 billion. South Korea, once the third-largest importer of U.S. beef, imposed a blanket ban on American imports in 2003 following the outbreak of mad cow disease in the United States. It later eased the ban by allowing imports of boneless beef from cattle younger than 30 months. A key sticking point in the latest round of negotiations in Seoul has been South Korea's insistence that bone-in beef can only come from cattle under 30 months. The United States wants the market completely opened. After the ban on U.S. beef, sales of Australian beef in South Korea more than doubled to 137,000 tons in 2006 from 64,000 tons in 2003. Local media have speculated that Seoul would likely bend to U.S. demands in return for Washington improving safety standards by toughening animal feed regulations. Lee told U.S. lawmakers on Thursday he hoped negotiators could resolve the long-running tussle over beef while he is in Washington, a U.S. lawmaker said. The Lee administration and his conservative Grand National Party (GNP) hope parliament will ratify the trade deal in a session that runs for about a month from April 25, a GNP official said. A deal with Seoul is important for Washington, which could use it as leverage to boost its trade with Japan and China and help rebuild its beef trade in Asia, the destination for about 55 percent of all U.S. beef exports in 2003. Japan currently imports U.S. beef from cattle 20 months or younger, while Taiwan imports boneless beef from cattle under 30 months of age. Expectations of a deal also pushed U.S. live cattle futures to a six-week high overnight, with June live cattle closing up 1.000 cent at a six-week high of 92.650 cents per lb. (Additional reporting by Jack Kim; Editing by Jonathan Thatcher)
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