Today's Date:     Friday, January 20, 2012

1. BILATERAL/MULTILATERAL ISSUES

DUP's Plans to Scrap Korea-U.S. FTA Are Irresponsible [English, LSH]

http://english.chosun.com/site/data/html_dir/2012/01/17/2012011701807.html

Summary: Unified Democratic Party is seeking to renegotiate or scrap the FTA, after the general elections in the April. The newly-elected leader of the party, Han Myeong-sook, says “If we win a majority of National Assembly seats in the April general elections, we will try our best to scrap the Korea-U.S. FTA and renegotiate the pact."

Controversial perspectives from government officials on effects of the Korea-China FTA on the relationships between Korea and the U.S. [English, LSH]

http://english.chosun.com/site/data/html_dir/2012/01/11/2012011101624.html

Summary: Diplomatic and security experts warn effects of what Korea-China FTA will bring to the Korea-U.S. relations. A government official states the Korea-China FTA could strain the Korea’s alliance with the U.S. However, another government official says "There is a difference between an FTA with an ally and an FTA with a country that has quite another political and economic system. The FTA with China will have limited effects on Korea's alliance with the U.S.”

Farmers Hone Their Competitiveness for the FTA Era[English, CSY]

http://www.arirang.co.kr/News/News_View.asp?nseq=124933&code=Ne2&category=2

Summary: The FTAs do pose a threat to Korea's relatively vulnerable agricultural sector. However, this crisis can be turned into a precious opportunity. It's time for Korean farmers to expand their exports by boosting their competitiveness.

KORUS FTA to be implemented in March at the earliest [Korean: BYK]

http://news.donga.com/3/all/20120119/43447684/1

Summary: Due to the year-end holidays and the time that it is taking to review relevant regulations, the earliest that KORUS FTA can go into enforcement is expected to be in March or early April.

Products made in Gaesung Industrial Complex will not receive the benefit of KORUS FTA [Korean: BYK]

http://joongang.joinsmsn.com/article/aid/2012/01/20/6822258.html?cloc=olink|article|default

Summary: The Voice of America reported that the U.S. Congress released a report on “Regulations for International Trade and Country-of-origin” that states that products made in Gaesung Industrial Complex that it located in North Korea cannot be eligible for receiving the benefits of the KORUS FTA.

2. LIVESTOCK ISSUES

Korea To Resume Canadian Beef Imports from Friday [English, CSY]

http://www.arirang.co.kr/News/News_View.asp?nseq=124979&code=Ne2&category=2

Full text: The Korean government announced that it will end an eight-year-old ban on imports of Canadian beef starting TODAY which has been suspended since 2003 after an outbreak of mad cow disease in the North American country.  The Agriculture Ministry said on Thursday, it will proclaim local distributors of the regulations and sanitary requirements, and that local livestock distributors will be able to sell Canadian meat from cows younger than 30 months old from this weekend.  Korea is the last major beef-importing country to agree to lower its restrictions on Canadian beef, since a 2003 case of mad-cow disease in Canada.

Major retailers blamed for high beef prices [English, CSY]

http://www.koreaherald.com/business/Detail.jsp?newsMLId=20120119001042

The beef prices at major retailers almost doubled the prices of smaller vendors, said the consumer advocacy group that surveyed hanwoo prices at 511 distributors and 130 restaurants in 11 cities in recent weeks, sponsored by the Fair Trade Commission.  The prices of the top hanwoo meat graded 1++, 1+ and 1 dropped 20.4 to 22.7 percent in January, compared to October 2010 when the outbreak of foot-and-mouth disease hit local farms hard.  During the same period, however, the consumer prices of the premium beef decreased 6 to 15.6 percent.

Canadian beef imports resume … actual sales to take place in mid-February [Korean: BYK]

http://www.todaykorea.co.kr/news/contents.php?idxno=165424

Summary: MIFAFF published the final import protocol for Canadian beef today.  Canadian beef imports will resume after being shut off for 8 years.  Given the time that it takes for transportation and quarantine inspection, etc., it won’t be until mid-February or the end of February before the Canadian beef is sold in retail markets.  However, the sales volume is not expected to be high, given the reluctance among Korean consumers against Canadian beef.

Retail prices of domestic beef go up, despite collapse in cattle prices [Korean: BYK]

http://biz.chosun.com/site/data/html_dir/2012/01/20/2012012000250.html

Summary: According to a survey by a consumer organization, the reason why retail beef prices is not dropping despite the plunge in live cattle prices is because the retailers are increasing their profit level.  Supermarket chain stores raised their retail beef prices by 12% and depart stores raised it by 0.9% when the wholesale prices dropped 22.7% for premium grade domestic beef (1++).

Pork ranks highest in breaking the labeling regulations [Korean: BYK]

http://www.yakup.com/news/index.html?mode=view&cat=11&nid=149382

Summary: According to data that was submitted to the National Assembly by MIFAFF, the highest number of false labeling of country-of-origin labeling was pork, followed by cabbage kimchi, beef and rice.

3. OTHER MISCELLANEOUS ISSUES

Minister urges greater efforts to boost farm exports [English, CSY]

http://english.yonhapnews.co.kr/business/2012/01/19/90/0501000000AEN20120119003000320F.HTML

Summary: South Korea's agriculture minister on Thursday urged increased efforts to boost the country's food and agricultural exports, stating the country's free trade agreement (FTA) with the United States will offer new opportunities.    The call came as South Korea is striving to increase its agriculture exports by 30 percent to over US$10 billion for the first time in its history this year. The country's food and agricultural exports surged 30.8 percent on-year to a record high of $7.7 billion in 2011, according to the Ministry of Food, Agriculture, Forestry and Fisheries.

Minister Suh Kyu-yong said conditions for the country's agricultural exports were worsening this year while the growth of Seoul's total exports, including industrial products, is expected to slow down from 19.6 percent last year to about 6.7 percent.  "Food and agriculture exports will also face great difficulties as the global economic downturn deepens this year, but the growing presence of hallyu (Korean wave) and the country's new FTAs could provide new opportunities that will foster rapid growth in the local food industry," Suh was quoted as saying in a meeting with officials from local governments and exporting companies.

4. MIFAFF PRESS RELEASES

► MIFAFF Minister checks the status of Chinese fishing boats in West Sea

► MIFAFF to develop rural villages with its own unique characteristics

► MIFAFF Minister checks quarantine inspection work at Inchon airport

► MIFAFF Minister to receive reports on annual work plan from ag. Cooperatives

► Ag. Exports creates over twice the value added than mobile phone exports

► Traces of radioactivity detected in chilled Alaskan Pollack from Japan

► Competition to enter National Ag. College goes up to 4.29:1

► Sanitary condition of slaughter plants to be improved to the level of the United States and EU

► MIFAFF #1 Vice Minister to visit sweet potato farm being operated by North Korean people that have come to live in Korea during the Lunar New Year

► MIFAFF #2 Vice Minister to visit traditional market and welfare facilities during Lunar New Year

► MIFAFF and Ministry of Public Administration and Security sing MOU on Cooperation in global Samaeul Undong (New Community Movement)

► MIFAFF announces Basic Plan for Promoting Restaurant Business

► MIFAFF to reduce accidents among fishing boats by 50% by the year 2015

► MIFAFF to allow building private homes in fishery resource reservation area

► MIFAFF to push for prevention of Natural Disasters in the agricultural lands during the winter season

► MIFAFF Minister visits traditional markets and welfare facilities prior to Lunar New Year