ID :
55939
Fri, 04/17/2009 - 10:50
Auther :
Shortlink :
https://www.oananews.org//node/55939
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Gov't mulls lifting rice import quota: farm minister
SEOUL, April 17 (Yonhap) -- The government is considering a move to discontinue
its rice import quota system for full tariffication to better reflect domestic
market demand and rising international prices, a senior official said Friday.
"It is advantageous for the country to change its policy on rice trade, though
there is concern among farmers that cheap imports would flood the market if the
quota system is lifted," Agriculture Minister Chang Tae-pyong told a local
newspaper.
His remarks come as the steady drop in domestic rice consumption is causing the
government to maintain large stockpiles of the grain, while a sharp rise in
global prices and depreciation of the Korean won is making it more costly to buy
foreign rice.
Under the 2004 agreement with countries including the United States, China and
Thailand, Seoul secured the right to hold onto its tariff waiver system that
effectively blocks private rice imports in exchange for so-called minimum market
access (MMA). This arrangement obliges the government to buy pre-set amounts of
rice so that by 2014, foreign rice must account for 8 percent of domestic
consumption from 4 percent tallied in 2004.
"Logically speaking it is best to opt for full tariffication, although such a
move will require understanding and support of farmers and agricultural groups,"
Chang said.
He claimed that tariffication can actually benefit farmers down the road.
The minister pointed out that if the country maintains the MMA regime for the
full 10 years, it will be obliged to import 408,000 tons of rice every year after
2014, even if they are not consumed. Such over supply can cause prices to fall
off sharply.
"If the country opts for tariffication now, the total that must be imported can
be reduced to around 300,000 tons per year," he said.
Chang said that many experts concur that international grain prices will continue
to go up in the coming years, and if the government slaps 400 percent tariffs on
imports foreign rice will be unable to threaten local growers. Locally grown rice
usually cost 3-4 times more than imports.
yonngong@yna.co.kr
(END)
its rice import quota system for full tariffication to better reflect domestic
market demand and rising international prices, a senior official said Friday.
"It is advantageous for the country to change its policy on rice trade, though
there is concern among farmers that cheap imports would flood the market if the
quota system is lifted," Agriculture Minister Chang Tae-pyong told a local
newspaper.
His remarks come as the steady drop in domestic rice consumption is causing the
government to maintain large stockpiles of the grain, while a sharp rise in
global prices and depreciation of the Korean won is making it more costly to buy
foreign rice.
Under the 2004 agreement with countries including the United States, China and
Thailand, Seoul secured the right to hold onto its tariff waiver system that
effectively blocks private rice imports in exchange for so-called minimum market
access (MMA). This arrangement obliges the government to buy pre-set amounts of
rice so that by 2014, foreign rice must account for 8 percent of domestic
consumption from 4 percent tallied in 2004.
"Logically speaking it is best to opt for full tariffication, although such a
move will require understanding and support of farmers and agricultural groups,"
Chang said.
He claimed that tariffication can actually benefit farmers down the road.
The minister pointed out that if the country maintains the MMA regime for the
full 10 years, it will be obliged to import 408,000 tons of rice every year after
2014, even if they are not consumed. Such over supply can cause prices to fall
off sharply.
"If the country opts for tariffication now, the total that must be imported can
be reduced to around 300,000 tons per year," he said.
Chang said that many experts concur that international grain prices will continue
to go up in the coming years, and if the government slaps 400 percent tariffs on
imports foreign rice will be unable to threaten local growers. Locally grown rice
usually cost 3-4 times more than imports.
yonngong@yna.co.kr
(END)
