ID :
54840
Fri, 04/10/2009 - 20:02
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Shortlink :
https://www.oananews.org//node/54840
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(News Focus) S. Korea, Canada to seek middle ground on beef trade face-off By Lee Joon-seung
SEOUL, April 10 (Yonhap) -- South Korea and Canada will try to find middle ground on the current beef face-off to prevent the issue from becoming a full-fledged trade dispute, government representatives from both sides of the Pacific said Friday.
The announcement came after Ottawa said earlier in the day that it filed a formal
complaint with the World Trade Organization (WTO) to get Seoul to lift its
current ban on Canadian beef, which has been shut out of the South Korean market
since May 2003.
It claimed that South Korea has not taken steps to open its market, despite
comprehensive scientific evidence supporting the safety of Canadian beef.
The North American country also raised complaints over a decree Seoul passed last
year enforcing the Prevention of Livestock Epidemics Act, which can be used to
block imports of Canadian beef and meat parts from cattle over 30 months. The
revision prohibits imports of beef from countries with cases of mad cow disease
reported within the last five years.
Trade Minister Stockwell Day claimed that the six-year ban is unjustified since
Canada was categorized as a "controlled bovine spongiform encephalopathy (BSE)
risk" country in May 2007 by the World Organization for Animal Health (OIE). The
classification effectively allows it to export most beef products, regardless of
the age of the butchered animal, as long as certain risk materials are removed.
He said that while Canada has called for WTO consultations to review its
grievances and protect its beef producers, it hopes any differences can be ironed
out before the matter reaches the dispute settlement panel.
The minister pointed out that the United States gained access to the South Korean
market in June 2008, even though it had received the same controlled risk from
the OIE.
This view was echoed by Ted Lipman, Canada's ambassador to Seoul, who told
reporters that every effort will be made to settle the issue between the trading
partners.
He argued that the only reason Ottawa voiced its complaints to the world trading
body is because the technical consultation meetings seemed to have reached an
impasse.
The two sides held technical meetings in late 2007 and November of last year
without making any meaningful headway. Seoul called for another round of talks in
late June, although Canada's Farm Minister Gerry Ritz warned during his visit to
Seoul last month that Ottawa could no longer wait.
In response to the decision to take the matter to the WTO, Farm Minister Chang
Tae-pyong said the government will deal with the situation in an active manner
that will best serve the national interest.
He hinted, however, that allowing the matter to go to the dispute settlement
panel may not result in an advantageous outcome.
"If the matter goes before the WTO, only hard scientific and objective proof
involving existing data on mad cow disease will be examined, with no allowances
made for domestic consumer sentiment or public opinion," the official said. He
added that Canada exports beef to other Asian countries like Hong Kong, Taiwan
and Japan.
The South Korean policymaker pointed out that Canada has been insisting from the
outset that the number of BSE cases reported is irrelevant because its meat
processing system prevents tainted meat from reaching consumers.
But "despite such arguments," he said, "the fact that mad cow cases are being
reported in the country raises questions about Canada's ability to control its
livestock, and this is what makes it hard to alleviate public concerns."
There have been 15 reported cases of BSE since 2003, with the latest being
confirmed in November 2008.
The brain-wasting illness is suspected of causing the fatal variant
Creutzfeldt-Jakob disease in humans. Scientists say BSE is most likely caused by
cattle being given protein-based feed made from other mammals.
The minister's reservations are due in large part to the national uproar incited
when South Korea agreed to lift its ban on U.S. beef last year. Hundreds of
thousands hits the streets, forcing President Lee Myung-bak to apologize. South
Korea's farm minister was sacked as a result of the deal.
Others in the ministry said Seoul had been anticipating the latest move and has
set up a plan for discussions to be held bilaterally and within the context of
the world trade body.
"Both South Korean and Canada know it is best to handle any dispute through
dialogue, since the process to resolve such issues takes time," an official who
declined to be identified said.
Under WTO rules on dispute settlements, a consultation is the first step in
working out a trade dispute, with talks to begin within 30 days of the request
being filed. If no agreement is reached within 60 days of the request, the
complainant can ask for a dispute settlement panel to be set up that will make a
definitive ruling, which can take up to two years if an appeal is made on the
first ruling.
Private trade experts, meanwhile, said if no compromise is reached in the next
few months and the issue is forwarded to the WTO dispute settlement panel, Seoul
may face an uphill climb.
Seo Jin-kyo, a researcher at the state-run Korea Institute for International
Economic Policy (KIEP), said that after having lifted the ban on U.S. beef, South
Korea is not in a good position to argue that Canadian beef cannot be brought
into the country.
"South Korean officials can argue that the sheer number of BSE cases found raises
risks to consumers, but the Canadians can easily counter that they posses an
advanced screening processes," the agriculture trade expert said. The U.S. only
reported three cases.
Kwak Soo-jung, a research fellow at the Samsung Economic Research Institute, said
if Seoul can find fault with Canada's BSE control process, it has a chance to win
a favorable verdict.
"The only strategy is to highlight the fact that despite the controlled risk
status won by Canada, the country is finding sick cattle, indicating a problem
does exist," the expert said.
Independent experts say that even if the country loses the case in the WTO, it
may still be able to impose certain limits on meat cuts and the age of animals
that can be butchered through talks with Ottawa.
They pointed out that since Canada does not want to inflame domestic public
opinion, which can hurt sales even if the market is opened, there is room for
compromise.
Before the ban, Canada shipped 16,400 tons of beef worth US$37.4 million to South
Korea, giving it the fourth-largest market share among imports after the United
States, Australia and New Zealand.
South Korea and Canada are also close trading partners, with two-way exports and
imports topping $8.46 billion last year. Ottawa posted a small trade surplus of
$347 million in the one-year period.
yonngong@yna.co.kr
(END)
The announcement came after Ottawa said earlier in the day that it filed a formal
complaint with the World Trade Organization (WTO) to get Seoul to lift its
current ban on Canadian beef, which has been shut out of the South Korean market
since May 2003.
It claimed that South Korea has not taken steps to open its market, despite
comprehensive scientific evidence supporting the safety of Canadian beef.
The North American country also raised complaints over a decree Seoul passed last
year enforcing the Prevention of Livestock Epidemics Act, which can be used to
block imports of Canadian beef and meat parts from cattle over 30 months. The
revision prohibits imports of beef from countries with cases of mad cow disease
reported within the last five years.
Trade Minister Stockwell Day claimed that the six-year ban is unjustified since
Canada was categorized as a "controlled bovine spongiform encephalopathy (BSE)
risk" country in May 2007 by the World Organization for Animal Health (OIE). The
classification effectively allows it to export most beef products, regardless of
the age of the butchered animal, as long as certain risk materials are removed.
He said that while Canada has called for WTO consultations to review its
grievances and protect its beef producers, it hopes any differences can be ironed
out before the matter reaches the dispute settlement panel.
The minister pointed out that the United States gained access to the South Korean
market in June 2008, even though it had received the same controlled risk from
the OIE.
This view was echoed by Ted Lipman, Canada's ambassador to Seoul, who told
reporters that every effort will be made to settle the issue between the trading
partners.
He argued that the only reason Ottawa voiced its complaints to the world trading
body is because the technical consultation meetings seemed to have reached an
impasse.
The two sides held technical meetings in late 2007 and November of last year
without making any meaningful headway. Seoul called for another round of talks in
late June, although Canada's Farm Minister Gerry Ritz warned during his visit to
Seoul last month that Ottawa could no longer wait.
In response to the decision to take the matter to the WTO, Farm Minister Chang
Tae-pyong said the government will deal with the situation in an active manner
that will best serve the national interest.
He hinted, however, that allowing the matter to go to the dispute settlement
panel may not result in an advantageous outcome.
"If the matter goes before the WTO, only hard scientific and objective proof
involving existing data on mad cow disease will be examined, with no allowances
made for domestic consumer sentiment or public opinion," the official said. He
added that Canada exports beef to other Asian countries like Hong Kong, Taiwan
and Japan.
The South Korean policymaker pointed out that Canada has been insisting from the
outset that the number of BSE cases reported is irrelevant because its meat
processing system prevents tainted meat from reaching consumers.
But "despite such arguments," he said, "the fact that mad cow cases are being
reported in the country raises questions about Canada's ability to control its
livestock, and this is what makes it hard to alleviate public concerns."
There have been 15 reported cases of BSE since 2003, with the latest being
confirmed in November 2008.
The brain-wasting illness is suspected of causing the fatal variant
Creutzfeldt-Jakob disease in humans. Scientists say BSE is most likely caused by
cattle being given protein-based feed made from other mammals.
The minister's reservations are due in large part to the national uproar incited
when South Korea agreed to lift its ban on U.S. beef last year. Hundreds of
thousands hits the streets, forcing President Lee Myung-bak to apologize. South
Korea's farm minister was sacked as a result of the deal.
Others in the ministry said Seoul had been anticipating the latest move and has
set up a plan for discussions to be held bilaterally and within the context of
the world trade body.
"Both South Korean and Canada know it is best to handle any dispute through
dialogue, since the process to resolve such issues takes time," an official who
declined to be identified said.
Under WTO rules on dispute settlements, a consultation is the first step in
working out a trade dispute, with talks to begin within 30 days of the request
being filed. If no agreement is reached within 60 days of the request, the
complainant can ask for a dispute settlement panel to be set up that will make a
definitive ruling, which can take up to two years if an appeal is made on the
first ruling.
Private trade experts, meanwhile, said if no compromise is reached in the next
few months and the issue is forwarded to the WTO dispute settlement panel, Seoul
may face an uphill climb.
Seo Jin-kyo, a researcher at the state-run Korea Institute for International
Economic Policy (KIEP), said that after having lifted the ban on U.S. beef, South
Korea is not in a good position to argue that Canadian beef cannot be brought
into the country.
"South Korean officials can argue that the sheer number of BSE cases found raises
risks to consumers, but the Canadians can easily counter that they posses an
advanced screening processes," the agriculture trade expert said. The U.S. only
reported three cases.
Kwak Soo-jung, a research fellow at the Samsung Economic Research Institute, said
if Seoul can find fault with Canada's BSE control process, it has a chance to win
a favorable verdict.
"The only strategy is to highlight the fact that despite the controlled risk
status won by Canada, the country is finding sick cattle, indicating a problem
does exist," the expert said.
Independent experts say that even if the country loses the case in the WTO, it
may still be able to impose certain limits on meat cuts and the age of animals
that can be butchered through talks with Ottawa.
They pointed out that since Canada does not want to inflame domestic public
opinion, which can hurt sales even if the market is opened, there is room for
compromise.
Before the ban, Canada shipped 16,400 tons of beef worth US$37.4 million to South
Korea, giving it the fourth-largest market share among imports after the United
States, Australia and New Zealand.
South Korea and Canada are also close trading partners, with two-way exports and
imports topping $8.46 billion last year. Ottawa posted a small trade surplus of
$347 million in the one-year period.
yonngong@yna.co.kr
(END)
