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Food News Clipping

November 14, 2011

2011.11.14

FAS/Seoul Monitoring of Media Reporting on Agricultural Issues

Today's Date: Monday, November 14, 2011

For Coverage: November 10 - November 14, 2011

1. BILATERAL/MULTIATERAL ISSUES

Lee, Obama greet each other at APEC amid FTA impasse in Korean parliament[English, MGF]

http://www.koreatimes.co.kr/www/news/nation/2011/11/113_98689.html

Summary: South Korean President Lee Myung-bak and U.S. President Barack Obama greeted each other Saturday at a welcoming dinner the American president hosted for Lee and other leaders gathered in Hawaii for a summit of Asia-Pacific economies. The brief photo session, where Obama posed for pictures with each of the 21 visiting leaders of the Asia-Pacific Economic Cooperation (APEC) economies, drew attention as it came amid a standoff in South Korea's parliament over the free trade agreement with the U.S.

Lee says trade pact with US will pass through parliament[English, MGF]

http://www.koreatimes.co.kr/www/news/nation/2011/11/116_98617.html

Summary: HONOLULU (Yonhap) -- Korean President Lee Myung-bak said Saturday he believes the free trade agreement with the United States will ultimately pass through parliament despite the prolonged impasse between the rival parties. Lee made the remark during a meeting with South Korean residents in Hawaii, a day after he arrived on this resort island for this year's summit of the Asia-Pacific Economic Cooperation (APEC) forum set for Sunday.

Assembly Begins Ministerial Budget Deliberations [English, MGF]

http://world.kbs.co.kr/english/news/news_Po_detail.htm?No=85991&id=Po

Summary: The National Assembly Special Committee on Budget and Accounts will open deliberations Monday on next year's budget plan. During deliberations on economy-related ministries, rival parties are expected to clash over the ratification of the South Korea-U.S. free trade agreement in view of the development that Japan is now pursuing an FTA with the U.S. through the Trans-Pacific Partnership (TPP) agreement.

Import Growth Far Exceeds Export Growth Since FTA w/EU[English, MGF]

http://world.kbs.co.kr/english/news/news_Ec_detail.htm?No=85981&id=Ec

Summary: Import growth far exceeded export growth in the three months since the effectuation of the South Korea-EU Free Trade Agreement in July. Exports grew by 13-billion dollars, a mere 0.8% increase year-on-year, while imports went up by 12.3 billion dollars, a 26.5 percent increase. During this time, the nation posted a trade surplus of 652-million dollars, which is a sizable year-on-year drop from last year’s 3.1 billion dollars.

U.S. Asks Japan to Open up its Beef and Automobile Market as soon as Japan declares that it will participate in the TPP talks [Korean: BYK]

http://news.naver.com/main/hotissue/read.nhn?mid=hot&sid1=104&cid=313291&iid=23846908&oid=032&aid=0002176119&ptype=011

Summary: USTR Ron Kirk stated in a press conference on November 11 that the United States would hold talks with Japan on beef, automobile and insurance programs being run by the Japanese Postal Service in advance in order to make progress in the TPP negotiations.

United States begin working level talks for implementing FTA with Panama and Columbia [Korean: BYK]

http://biz.heraldm.com/common/Detail.jsp?newsMLId=20111114000100

Summary: The United States began talks with Panama and Columbia working level officials for implementing the FTA, while Korea has been dragging its feet on ratifying the KORUS FTA due to the conflict between the ruling party and the opposition party. Although, Panama and Columbia have both ratified the FTA bill with the United States, it still has to revise some of its domestic laws prior to implementing the FTA. Observers are projecting that the FTA in both countries won’t take place until another 6-18 months.

Floor leader for the Democratic Labor Party criticizes President Lee’s remarks [Korean: BYK]

http://www.mt.co.kr/view/mtview.php?type=1&no=2011111409508249246&outlink=1

Summary: Noh, Young Min, Floor leader for the Democratic Labor Party stated that it was inappropriate for the President to state during the APEC summit that “the KORUS FTA will be ratified.” Noh made such comments after stating that whether the FTA gets ratified or not isn’t important. The thing that matters is whether the FTA meets the interest of the nation and needs to be implemented after receiving the people’s support and blessing. He asked if the President meant that he was thinking about physically ratifying the KORUS FTA by stating that it will be ratified.

President Lee states that KORUS FTA is one of the National Survival Strategies [Korean: BYK]

http://www.mt.co.kr/view/mtview.php?type=1&no=2011111409028268821&outlink=1

Summary: President Lee emphasized that the KORUS FTA was one of the nation’s survival strategy. He made such statement after explaining that the ratification of the KORUS FTA should not be shook up by political logics.

The Truth in FTA Related Arguments [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=100&oid=001&aid=0005369916

Summary: Yonhap news carried a series of 6 issues that are undergoing heated discussions in relation to the KORUS FTA. The last of the series covered the beef issue. This article covers the argument being raised by the anti FTA groups that are asserting that KORUS FTA will mean that Korea will have to open up the market for beef from over thirty month old cattle, while at the same time covering the arguments that beef and KORUS FTA are two separate issues.

Imports from EU far exceed exports after FTA [English, CSY]

http://english.yonhapnews.co.kr/business/2011/11/13/0502000000AEN20111113000500320.HTML

Summary: South Korean imports from the European Union (EU) grew at a far faster pace than its exports to the economic bloc over the three months since their bilateral free trade deal took effect in July, data showed Sunday. In the July-September period, South Korean imports from the EU came to US$12.35 billion, registering an average monthly increase rate of 26.5 percent, according to the data by the Ministry of Knowledge Economy and the Korea International Trade Association.

Lee calls free trade pact with U.S. 'survival strategy' for S. Korea [English, CSY]

http://english.yonhapnews.co.kr/business/2011/11/13/0502000000AEN20111113003600315.HTML

Summary: President Lee Myung-bak made yet another pitch for parliamentary ratification of the free trade agreement with the United States, stressing that the pact is a "survival strategy" that will help the country tide over global economic crises. Lee and his ruling Grand National Party have been intensifying efforts to approve the trade pact that they believe will boost exports, create jobs and strengthen the alliance with Washington. The U.S. Congress gave the deal final approval during Lee's state visit last month.

'Cheong Wa Dae Letter' Reveals Cheong Wa Dae's Low Level of Understanding of KORUS FTA [English, CSY]

http://english.khan.co.kr/khan_art_view.html?artid=201111091236587&code=790101

Summary: A letter sent by Kim Hyo-jae, the president's senior secretary for political affairs, to Grand National Party lawmakers, urging the National Assembly to ratify the KORUS FTA, is attracting controversy. In the letter, Kim claims that opposition to the FTA agreement is effectively "anti-Americanism," and that the ruling party must not shy away from railroading the bill, given that concluding FTAs is inevitable in today's era of openness. Though the letter went out in Kim's name, it can be regarded as representing the thoughts of the president and Cheong Wa Dae. A look at its contents, however, leaves readers with no choice but to lament the low level of understanding at Cheong Wa Dae when it comes to the FTA.

Calls Within Democratic Party to Renegotiate ISD Ignore Fundamental Problems within KORUS FTA [English, CSY]

http://english.khan.co.kr/khan_art_view.html?artid=201111101428257&code=790101

Summary: There is talk that within particular quarters of the Democratic Party, they are taking signatures that if they get a pledge from the United States to begin negotiations on whether or not to retain the Investor-State Dispute (ISD) system as soon as the KORUS FTA goes into effect, they will not block the ratification of the agreement. When the DP floor leader made a similar claim a few days ago, it seemed he may have been simply intimating at one of the options being considered, but it now appears this was not the case. If these moves are true, it is troubling. The attitude of the faction calling for negotiations should be criticized for their self-contradictory and political approach that glosses over the essence of the KORUS FTA. It is true that the ISD is a leading poison pill of the FTA. In that disputes over domestic public policy could be turned over to an international mediator should the article be maintained, there is much potential for it to render powerless domestic law.

40,000 against the KORUS FTA [English, CSY]

http://english.hani.co.kr/arti/english_edition/e_entertainment/505337.html

Summary: Tens of thousands of laborers hold a “Nationwide Workers’ Rally” hosted by Korea Confederation of Trade Unions (KCTU) at Seoul Plaza in front of Seoul City Hall, Nov. 13. KCTU announced that there were approximately 40,000 participants in the rally with the far-reaching implications of the FTA, and that the rally was the largest over last six years since the Nationwide Worker’s Rally in 2005 (50,000 participants)　On Nov. 13, multiple protests by workers and citizens were held at places in Seoul urging solidarity amongst the “99% standing against 1% of capitalism,” and opposing the South Korea-U.S. Free Trade Agreement (KORUS FTA). The participants promoted resistance to the KORUS FTA, solving problems of low wages and irregular workers, a complete revision of labor laws, and securing respect for laborers and people’s welfare through victory in the general and the presidential elections in 2012.

2. LIVESTOCK ISSUES

Price Increase of Fluid Milk is Followed by Other Dairy Products Including Yoghurt [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/11/14/0318000000AKR20111114063600003.HTML?template=2087

Summary: Korea Yakurt Co., a leading yoghurt processor, announced on November 14 that it has increased the ex-factory price of ‘Will’, its flagship yoghurt product, by 8.3 percent. Other suppliers of yoghurt products have announced similar price increases recently.

3. MAREKTING ISSUES

Korean Industrial Companies are in Rally to Join Restaurant Business [Korean, OSY]

http://economy.donga.com/total/3/01/20111112/41821117/3

Summary: Many Korean companies based on non-food, industrial businesses are launching food service businesses. A good example is SCG Group, a leading natural gas supplier which has launched ‘Tas’ café & bakery shop chain recently. It is expected that food and beverage business will be joined by increased number of Korean industrial companies, but some of the marketers are showing a concern that this trend will only add unnecessary competitive pressure in the industry which is already over-crowded.

E-Mart to Import Additional Coffee Beans via Air Cargo to Meet the Unexpectedly High Demand on Its Store Brand Roasted Coffee Beans [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2011/11/14/0318000000AKR20111114027100003.HTML

Summary: According to E-Mart, the first 19 ton shipment of Ceradu coffee, its own brand roasted coffee beans directly imported from Brazilian supplier and roasted by a partner roaster in Korea, is likely to be sold out in two weeks after launching, so the retailer has decided to bring in additional shipment in an air cargo, which is unusual for coffee bean, to meet the surging demand. The first shipment was meant to cover three months of sales, according to the E-Mart.

Japan Wants to Join Trans-Pacific Partnership (TPP) … The Largest Economic Partnership in the World Likely to Emerge in Fall 2012 [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011111198651&sid=01012014&nid=000

Summary: Japanese government has officially declared that it has decided to join the negotiation for the Trans-Pacific Partnership (TPP), a multi-national free trade agreement. So far ten nations around the Pacific sea, including the U.S., Australia, Chile, Singapore, and Japan, have announced participation in the negotiation. Current plan targets implementation of free trade among all member nations inclusive of agricultural products by 2015. Japanese government said in its announcement that it hopes to close the negotiation with the U.S. by the end of Fall 2012.

4. OTHER MISCELLANEOUS ISSUES

Two faces of food security[English, MGF]

http://www.koreatimes.co.kr/www/news/biz/2011/11/334_98676.html

Summary: Korea is one of the least self-sufficient countries in terms of food among developed countries. The country, however, does not grow GM crops locally. Without the aid of biotechnology, how can Korea ensure food security amid the worldwide agflation, an increase in food prices? In the long term, the government doesn’t rule out the cultivation of GM crops. “We are approaching this issue conservatively. We are getting ready because we don’t want to be left behind in 20 or 30 years when everybody does GM. It will be more of a government-led initiative than one run by corporations with commercial interests. It’s like arming in an emergency,” one government official said.

Portable Reader to Identify Place of Origin of Fishery Products[English, MGF]

http://world.kbs.co.kr/english/news/news_Ec_detail.htm?lang=e&id=Ec&No=85966¤t_page=

Summary: The National Fisheries Research and Development Institute has developed a portable device which can identify the place of origin of fishery products within one hour. The institute said on Friday that it aims to commercialize next year the automatic scanner which can identify the place of origin and the species of fishery products.

Environment Ministry Must Not Cover Up Leachate Leaks [English, CSY]

http://english.khan.co.kr/khan_art_view.html?artid=201111101455437&code=790101

Summary: Earlier this week, experts on the National Assembly's Environment and Labor Committee, quoting the results of an environmental impact investigation by the Ministry of Environment (ME), stated, "Among 300 burial sites (containing cows and pigs buried during the foot and mouth crisis) investigated in the third and fourth quarters of last year, it was confirmed that leachate had leaked out of 105 sites." In reality, however, the ME explained, "As a result of investigating 300 burial sites among the total 4,799, three times this year, it has emerged that there is a high possibility of leachate leaking from 84 sites. But we cannot state categorically, based on this, that leachate leaks did occur." We cannot help but feel disappointed at the ME for its consistently lame excuses and its ignoring of the dangers of leachate leaks. Naturally, suspicions are being raised that the ministry may have been hiding such leaks.

<11/7/2011>Nonghyup opens first organic farm food café [English, CSY]

http://www.koreatimes.co.kr/www/news/biz/2011/11/123_98260.html

Summary: The National Agricultural Cooperative Federation, or Nonghyup, opened an organic farm food cafe in Seoul Monday to serve healthier items made from local organic agricultural produce. Orgafe, a compound name formed from “organic” and “cafe,” features a variety of organic menu options, such as fresh fruit juice, sandwiches made of pesticide-free wheat bread, yogurts and salads with antibiotic-free chicken breast.

5. MIFAFF PRESS RELEASES

► False COO labeling in fishery products to be stopped. The National Fishery Research Institute is in the process of developing a hand carried device that can analyze the DNA of the fishery products and help determine the COO.

► All types of plant species to be subject to property right as of January 7, 2012. Korea has gradually been increasing the types of plant varieties subject to property rights since joining the International Union for the Protection of New Varieties of Plants (UPOV) in 2002. The 10-year phase in period ends in January 2012.

► MIFAFF to establish Food Quality and Safety Center by 2015

► MIFAFF to enhance inspection of COO labels for rice and Chinese cabbages.

► MIFAFF releases list of recipients for research grants to be provided to young researchers and professors.

6. The aT’s PUBLIC NOTICE OF STATE TRADING

Tender Announcement for Import License of Dehydrated Onion 180 MT

Tender Announcement for Fresh Garlic, which is composed of 487 MT of Soft Stem and 1,500 MT of Hard Stem

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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