South Korea closer to allowing imports of Canadian beef

Two Canadian Ministers announced that a major step has been taken towards restoring access for Canadian beef in South Korea with the South Korean Parliament ratifying the import health requirements (IHR) for Canadian beef, under 30 months of age. This is one of the final steps prior to Canadian beef re-entering the South Korean market.

Following Canada's first case of bovine spongiform encephalopathy (BSE) in May 2003, South Korea banned Canadian beef and beef products. After years of emphasizing that there is no scientific basis for the ban, Canada requested a World Trade Organization (WTO) Panel to review South Korea's ban on Canadian beef.

Last June, Agriculture Minister Gerry Ritz and International Trade Minister Ed Fast announced a breakthrough in restoring access bilaterally. Both the Canadian and South Korean governments agreed on a process to restore access by the end of 2011. Following this agreement, Canada formally requested a suspension of the WTO proceedings.

The South Korean Government still has to promulgate the IHRs early in the new year, then issue a list of approved beef establishments for export and formally accept the import health certificates. This is expected to happen early in 2012. South Korea's progress meets timelines established, therefore the WTO Panel remains suspended.

The lucrative South Korean beef market - which Canada Beef Inc estimates could be worth $30 million to Canadian producers by 2015 - was the last major Asian market banning Canadian beef. In 2002, South Korea was Canada's fourth-largest beef market.

Back in October, Canadian beef industry representatives expressed concern over the coming into force of the United States-South Korea free trade agreement. The associations feared that any further delays in free trade talks between Canada and Korea will seriously affect the competitiveness of theirs and other Canadian sectors exporting to South Korea.

Canadian Cattlemen's Association President Travis Toews added his concern. "Almost at the very moment we hope Korea lifts its prohibition on Canadian beef, they will be reducing the tariff on U.S. beef which could well negate our market access gain."