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Food News Clipping

October 17, 2011

2011.10.17

FAS/Seoul Monitoring of Media Reporting on Agricultural Issues
Today's Date:  Monday, October 17, 2011
For Coverage: October 14 - October 17, 2011
 
 

1. BILATERAL/MULTILATERAL ISSUES

 

European Products Rush into Korean Hypermarket Stores ¡¦ Due to Duty Reduction by EU-Korea FTA ¡¦ Premium Breakfast Cereal by E-Mart ¡¦ Wine by Lotte Mart

http://www.hankyung.com/news/app/newsview.php?aid=2011101644091&nid=004&sid=0104

E-Mart has launched a line of premium European breakfast cereal products this month.  The EU-Korea FTA eliminated 45 import duty on breakfast cereals immediately up implementation, which made the price of the product in Korea competitive enough for launching, commented the buyer in E-Mart.  Lotte Mart has added 10 new European wines to its portfolio since implementation of the FTA.  The 15 percent import duty was eliminated immediately upon implementation of the FTA.

 

Table: Change of Import Duty on Key European Products

Product

Old Import Duty

Duty Reduction by EU FTA

Breakfast Cereal

45%

Immediate Elimination

Tomato Ketchup and Sauces

8%

Immediate Elimination

Wine

15%

Immediate Elimination

Butter

89%

10 Year Phase Out

Cheese

36%

15 Year Phase Out

Frozen Pork Meat

25%

10 Year Phase Out

Spaghetti

8%

5 Year Phase Out

Beer

30%

7 Year Phase Out

Bisquet and Cookies

8%

5 Year Phase Out

 

2. LIVESTOCK ISSUES

 

Japan to Ease Import Restriction on U.S. Beef ¡¦ Imports to be Allowed for Beef from Cattle Up to 30 Months Old ¡¦ Looser Restriction than Korean Standard [Korean, OSY]

http://news.donga.com/Inter/3/02/20111017/41149242/1

Summary: Japanese Government has reportedly decided to ease the import restriction on U.S. beef.  According to an article by Yomiwoori Newspaper on October 16, the new rule would allow meat from cattle up to 30 months old to enter the market.  Considering the fact that 95 percent of the beef meat distributed in the U.S. is from cattle under 30 months of age, the new rule would mean wide opening of the Japanese market to American beef.  Yomiwoori News reported that this new agreement would be officially announced during the Japanese prime minister¡¯s visit to the states next month.  By the way, Korean standard currently allows American beef from cattle up to 20 months old.

 

3. OTHER MISCELLANEOUS ISSUES

 

Liberalization of ¡®Seed Market¡¯ to Foreign Suppliers from Next Year ¡¦ Korean Farmers Likely to Pay 800 Billion Won of Loyalty Fee over the Next 10 Years [Korean, OSY]

http://news.donga.com/Society/New/3/03/20111015/41114549/1

Summary: The 10 year grace period given to Korea under international UPOV agreement is scheduled to end next year.  As a result, Korean farmers will have to start paying loyalty to foreign seed companies when planting seeds of the 6 product categories which were exempted under the agreement over the last 10 years.  The 6 product categories are strawberries, citrus, wood berries, blueberries, cherries, and sea weeds.  Although Korea has made an effort to develop local seed varieties to replace foreign seeds over the years, it is likely that local farmers will face high loyalty fees for foreign seeds because Korea still relies heavily on foreign seeds for many crops.  An estimate by the Korea National Seed Institute forecasts that Korean farmers would pay 800 billion won over the next 10 years to foreign seed companies.

 

 

 

The information in this report was compiled by the Agricultural Trade Office (ATO) at the U.S. Embassy in Seoul, South Korea. The press summaries contained herein do NOT reflect USDA, the U.S. Embassy, or other U.S. government agency official policy or view point. U.S. food exporters can learn more about market opportunities in South Korea by reviewing ATO Seoul¡¯s Exporter Guide and other reports available at www.fas.usda.gov by clicking on ¡°attaché reports¡±.

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Agricultural Trade Office, U.S. Embassy - Seoul
Tel: 82-2-6951-6848 Fax: 82-2-720-7921
Email: atoseoul@state.gov