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.

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.