ID :
26535
Sat, 10/25/2008 - 15:58
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https://www.oananews.org//node/26535
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FTA with Chile causes S. Korean grape production to plummet
OKCHEON, South Korea, Oct. 25 (Yonhap) -- South Korea's free trade agreement with Chile has caused local grape production to fall off sharply over the past four years, regional government authorities said Saturday.
Officials and farmers at Okcheon, North Chungcheong Province, said production has
fallen by 30 percent since 2004, as the government paid 15.3 billion won to get
farmers to halt production in the face of a sharp increase in imports of Chilean
grapes.
The South American country is a major exporter of grapes and wine.
Okcheon county, which lies east of the city of Daejeon, is the single largest
producer of grapes in South Korea and accounted for 85 percent of all grape
vineyards in the province.
Local experts said before the FTA with Chile, which went into effect on April 1,
2004, 779 separate farms raised grapes here, with the total vineyard-area
reaching 257.6 hectares. After the agreement was signed, total acreage dropped by
close to 30 percent to 181.8 hectares, while output has fallen from 4,256 tons
before the FTA to 3,088 tons.
The drop in production mirrors a similar reduction in sales of various
agricultural products, including wine, certain fruits and pork.
On Thursday, a local producer of wine made from wild grapes applied for and
received government support after claiming the influx of Chilean wine hurt sales.
The support measures include loans and consulting fees and is the first case in
which Seoul has offered assistance to a local company for damages caused by a
free trade pact with a foreign country. Experts predict that a growing number of
such cases involving local companies hurt by FTAs will occur in the future as
South Korea moves to sign more agreements with foreign countries.
The FTA with Chile was the first for South Korea, which has since arranged FTAs
with Singapore, the European Free Trade Association and the Association of
Southeast Asian Nations.
Seoul concluded an FTA agreement with the United States last year which is
waiting ratification, and is currently holding talks with the European Union,
Canada and Mexico.
yonngong@yna.co.kr
(END)
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Officials and farmers at Okcheon, North Chungcheong Province, said production has
fallen by 30 percent since 2004, as the government paid 15.3 billion won to get
farmers to halt production in the face of a sharp increase in imports of Chilean
grapes.
The South American country is a major exporter of grapes and wine.
Okcheon county, which lies east of the city of Daejeon, is the single largest
producer of grapes in South Korea and accounted for 85 percent of all grape
vineyards in the province.
Local experts said before the FTA with Chile, which went into effect on April 1,
2004, 779 separate farms raised grapes here, with the total vineyard-area
reaching 257.6 hectares. After the agreement was signed, total acreage dropped by
close to 30 percent to 181.8 hectares, while output has fallen from 4,256 tons
before the FTA to 3,088 tons.
The drop in production mirrors a similar reduction in sales of various
agricultural products, including wine, certain fruits and pork.
On Thursday, a local producer of wine made from wild grapes applied for and
received government support after claiming the influx of Chilean wine hurt sales.
The support measures include loans and consulting fees and is the first case in
which Seoul has offered assistance to a local company for damages caused by a
free trade pact with a foreign country. Experts predict that a growing number of
such cases involving local companies hurt by FTAs will occur in the future as
South Korea moves to sign more agreements with foreign countries.
The FTA with Chile was the first for South Korea, which has since arranged FTAs
with Singapore, the European Free Trade Association and the Association of
Southeast Asian Nations.
Seoul concluded an FTA agreement with the United States last year which is
waiting ratification, and is currently holding talks with the European Union,
Canada and Mexico.
yonngong@yna.co.kr
(END)
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