The steady pick-up in U.S. beef sales since Seoul and Washington agreed a year ago to reopen Korea`s market to beef only from cattle less than 30 months old may be a relief to the American beef industry.
But local experts say the trade situation, sensitive to both sides, still requires close and careful observation. Seoul and Washington in April last year agreed to allow imports of beef from cattle over 30 months old once sentiment towards the meat improved, and consumers have gained full confidence over the safety.
Seoul faced strong public pressure to tighten beef import conditions following severe protests over Korea`s decision to remove the import ban altogether, which critics say was the result of a hasty decision by the Lee Myung-bak government to spur the process of ratifying the Korea-U.S. free-trade agreement.
Opponents staged violent street demonstrations and candlelight vigils over what they called the Lee administration`s "senseless" decision to prioritize the FTA over public health concerns. The Democrat-led U.S. Congress declared full access to Korea`s beef market as a precondition to supporting the landmark free trade deal.
"Both sides are closely watching the developments of U.S. beef consumption here, but the beef issue has nothing to do with the successful passage of the FTA because beef import standards deal with the nation`s safety and quarantine measures, which are not under the purview of an FTA deal," Hong Young-ki, director for the North America and European Union Trade Division at the Ministry of Foreign Affairs and Trade, told The Korea Herald.
Seoul agreed on April 18 last year to open its market to U.S. beef from cattle less than 30 months old and to lift the age limit once public sentiment is replenished.
The intense nature of public outcry over fears of mad cow disease at the time cast doubt on whether American beef would ever overcome the stigma. One year later, however, fears have somewhat eased and consumer sentiment is steadily and slowly improving.
"The uneasiness hasn`t disappeared altogether yet, but the steady improvement in American beef consumption is a feat considering that it seemed somewhat very challenging amid the intense controversy last year," Suh Jin-kyo, an economist and agricultural industry expert, told The Korea Herald.
"U.S. beef now faces a tough battle in a market where Australia has replaced the once leading position it held before the full ban was placed in 2003."
Confirmation of a case of mad cow disease, scientifically called bovine spongiform encephalopathy, in the U.S. state of Washington in December 2003 led to the full import ban. Cattle under 30 months are believed to be less susceptible to the brain-wasting illness.
Before the ban, Korea stood as the world`s third-largest export destination for U.S. beef. At home, demand for the meat ranked No. 1, even outpacing homegrown beef, or "hanwoo."
According to the National Veterinary Research and Quarantine Service, which inspects the safety of livestock imports, a total of 70,545 metric tons of U.S. beef was approved between June 26, 2008 and March this year. The volume ranks second after Australian beef, the NVRQS said.
Although monthly import trends slipped between Dec. and Jan. before making a rebound in February, industry experts such as the U.S. Meat Export Federation and the Korea Meat Import Association, attribute the drop to the weakened won and the economic downturn.
"Some of the U.S. meat importers here had to reduce orders because of the difficulties stemming from the weakened won and the economic crisis, which has dampened demand for the meat," Yoo Bo-hee, chairman of the Korea Meat Import Association, told The Korea Herald.
Park Jung-min, the spokeswoman for the U.S. Meat Export Federation, noted that economic conditions have a direct effect on beef consumption.
"The bad economic times naturally drive price-sensitive consumers to cut spending," she said.
Park also noted the steady pick-up in sales, considering the short period within which U.S. beef has reentered the market after more than five years of absence, signals a promising outlook.
"It has actually only been three months since U.S. beef has been made available to the public through discount stores and restaurants, so we see the rising demand, although it is at a slow pace, as a positive sign," Park said.
Suh noted that the issue now is when Korea will allow imports of beef from cattle over 30 months old.
"This will need some time though," he said, noting that the beef row with Canada could lift the ban.
Canada announced on April 10, 2009 that it would consult the World Trade Organization on Korea`s continued ban of its beef imports, citing violation of international trade rules.
Seoul has been banning imports of Canadian beef since May 21, 2003, following a confirmed case of mad cow disease.
The two countries have been holding talks since May 2007 and Seoul has sought safety tests of Canadian beef. The talks that began in May 2007 came after the World Organization for Animal Health (OIE) officially categorized Canada as a "Controlled BSE Risk" country, recognizing the effectiveness of the country`s surveillance, mitigation and eradication measures.
Canada has reported a total of 15 mad cow cases since 2003. Ottawa says the figure represents the country`s thorough and strict monitoring standards.
Suh agrees that the high figure provides a strong argument, since it could prove Canada`s tight and tough beef safety standards. He said Seoul could have a weak case at the WTO, since the Korea`s mad-cow monitoring standards status by the OIE is one of an uncertain level.
Suh said Korea`s mad-cow monitoring system is weak, which could be blamed on costs and lack of qualified specialists.
"We also lack a solid history of accumulated tests of mad-cow testing samples, so this could raise the issue of our beef safety," the expert said.
He said Washington could be waiting for the outcome of the beef row between Ottawa and Seoul before seeking the resumption of imports of beef from cattle over 30 months old.
"But I think Korea knows it would be in its best interest to avoid going to the WTO, because it could raise more issues, so I think Seoul and Ottawa will seek a compromise on the dispute soon," Suh said.
(sohjung@heraldm.com)
[출처 : 코리아헤럴드]
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