Optimism in Wake of South Korean Election
South Korea
Optimism in Wake of South Korean Election
Observers are cautiously optimistic that yesterday’s presidential election in South Korea will lead to improved relations between that country and the United States, and that this could enhance prospects for fully reopening that market to U.S. beef imports.
New President Lee Myung-bak, former CEO of the Hyundai Group’s construction arm and former mayor of Seoul who is nicknamed “The Bulldozer” for his relentless drive, will begin his term of office after his inauguration on Feb. 25, 2008. He has named his presidency the “Pragmatic Administration,” which is reflected in a statement he made during the campaign on the beef issue: “Given the fact that OIE ratified the U.S. as a controlled risk country, there is no reason to ban bone-in U.S. beef.” He also indicated that there should be a program to aid Korean beef producers who will be affected by the return of U.S. beef to the Korean market.
Outgoing President Roh Moo Hyun already has negotiated a free-trade agreement with the United States that is designed to open South Korea’s market to more U.S. goods. Specifically, it calls for phasing out tariffs on most cuts of U.S. pork by 2014 and tariffs on U.S. beef over 15 years from the implementation date of the agreement. Before implementation, the agreement must be ratified by the South Korean legislature – which is anticipated before the new administration takes office – and by the U.S. Congress. No date has been set for congressional review of the agreement, and some fear that it may not come to a vote until after the 2008 U.S. presidential election.
“South Korean consumers are eager for the return of popular, highly marbled U.S. beef at reasonable prices,” said USMEF Korea Director Jihae Yang. “During the brief period that the market was open to U.S. beef (intermittently from mid-April through October 5, 2007), U.S. beef gained sales momentum, reclaiming a 3.9 percent market share of the total import volume of 195,524 mt for the January-August 2007 timeframe.”
Total South Korean beef imports for 2006 were 236,338 mt, a 35 percent decrease over 2003 when the U.S. supplied 68 percent of all South Korean beef imports. Australia now supplies 76 percent of South Korea’s beef, up from 21 percent in 2003.
When the market was open to U.S. beef earlier this year, U.S. chilled choice loin in Lotte Mart was selling at $4.1/100kg versus $5.4/100kg for Australian 300-day grain-fed.
Over the same timespan, U.S. pork exports to South Korea have increased by 279 percent. The U.S. supplies 26 percent of the country’s pork imports (2006 figures) compared to 11 percent in 2003. Total pork imports in South Korea have increased 156 percent, reaching 331,829 mt in 2006 compared to 129,438 mt in 2003.
South Korea
Optimism in Wake of South Korean Election
Observers are cautiously optimistic that yesterday’s presidential election in South Korea will lead to improved relations between that country and the United States, and that this could enhance prospects for fully reopening that market to U.S. beef imports.
New President Lee Myung-bak, former CEO of the Hyundai Group’s construction arm and former mayor of Seoul who is nicknamed “The Bulldozer” for his relentless drive, will begin his term of office after his inauguration on Feb. 25, 2008. He has named his presidency the “Pragmatic Administration,” which is reflected in a statement he made during the campaign on the beef issue: “Given the fact that OIE ratified the U.S. as a controlled risk country, there is no reason to ban bone-in U.S. beef.” He also indicated that there should be a program to aid Korean beef producers who will be affected by the return of U.S. beef to the Korean market.
Outgoing President Roh Moo Hyun already has negotiated a free-trade agreement with the United States that is designed to open South Korea’s market to more U.S. goods. Specifically, it calls for phasing out tariffs on most cuts of U.S. pork by 2014 and tariffs on U.S. beef over 15 years from the implementation date of the agreement. Before implementation, the agreement must be ratified by the South Korean legislature – which is anticipated before the new administration takes office – and by the U.S. Congress. No date has been set for congressional review of the agreement, and some fear that it may not come to a vote until after the 2008 U.S. presidential election.
“South Korean consumers are eager for the return of popular, highly marbled U.S. beef at reasonable prices,” said USMEF Korea Director Jihae Yang. “During the brief period that the market was open to U.S. beef (intermittently from mid-April through October 5, 2007), U.S. beef gained sales momentum, reclaiming a 3.9 percent market share of the total import volume of 195,524 mt for the January-August 2007 timeframe.”
Total South Korean beef imports for 2006 were 236,338 mt, a 35 percent decrease over 2003 when the U.S. supplied 68 percent of all South Korean beef imports. Australia now supplies 76 percent of South Korea’s beef, up from 21 percent in 2003.
When the market was open to U.S. beef earlier this year, U.S. chilled choice loin in Lotte Mart was selling at $4.1/100kg versus $5.4/100kg for Australian 300-day grain-fed.
Over the same timespan, U.S. pork exports to South Korea have increased by 279 percent. The U.S. supplies 26 percent of the country’s pork imports (2006 figures) compared to 11 percent in 2003. Total pork imports in South Korea have increased 156 percent, reaching 331,829 mt in 2006 compared to 129,438 mt in 2003.