Today's Date:      Thursday, March 22, 2012

1. BILATERAL/MULTILATERAL ISSUES

S. Korea to extend tariff quota for pork, dried peppers [English, CSY]

http://english.yonhapnews.co.kr/business/2012/03/20/82/0501000000AEN20120320001400320F.HTML

Summary: South Korea will extend its tariff quotas for pork belly and dried peppers by three months to ensure their steady supply and help stabilize domestic prices, the finance ministry said Tuesday.  The tariff quotas for the two items will be extended till the end of June, with Seoul to increase the pork belly quota by 70,000 tons. The ministry said the quota for dried peppers has been raised to 11,185 tons from 6,185 tons.    Originally, both quotas were scheduled to expire on March 31.

The tariff quota system is used to help control the inflow of products from abroad that can affect local prices. The government can expand the volume of products to be imported under favorable tariff rates if it expects a shortfall in supply that can fuel inflationary pressure.   "The move is necessary because there is usually a surge in demand for pork belly in spring time," the finance ministry said.   It added that the Cabinet approved a motion to extend the quotas earlier in the day, with policymakers to consider extending the quotas further after it examines domestic prices and supply trends.  The latest measures, however, do not include extending the tariff quota for garlic, which will expire at the end of the month as planned.

Gov't to curb unfair pricing that undermines FTA [English, CSY]

http://english.yonhapnews.co.kr/business/2012/03/21/85/0501000000AEN20120321004500320F.HTML

Summary: South Korea will crack down on unfair pricing practices in the distribution sector that undermine free trade pacts with its trading partners, top economic policymakers said Wednesday.    Officials, including Finance Minister Bahk Jae-wan, said in a weekly economic review meeting that Seoul will closely examine the consumer prices of products that have benefited from free trade agreements (FTAs).     If there is a wide gap between import and consumer prices, which can be a sign of excessive profit taking, the government will deal with the matter as an unfair practice.    "The government will release the import prices for products that are closely linked to consumers so people can compare these with the actual sale prices," officials said.     The measures come as excessive profit margins by importers and retailers have caused prices of some products to remain high although import costs have come down thanks to various free trade pacts with the country's trading partners, such as the United States and the European Union.    High prices adversely affect the government's efforts to tame inflation, which soared to 4 percent in 2010 from a year earlier, hitting the upper ceiling of the Bank of Korea's 2-4 percent target band. For 2012, the government is aiming to bring prices down to around 3.2 percent.

Gov’t to monitor prices of goods from FTA areas[English, KJH]

http://koreajoongangdaily.joinsmsn.com/news/article/html/295/2950295.html

Summary: The Ministry of Strategy and Finance will crack down on unfair practices in the domestic distribution of imported goods to maximize the benefits of free trade agreements, it said. Minister Bahk Jae-wan said at a meeting yesterday the government will closely monitor import and retail prices of products most frequently used by consumers.

The Ministry of Strategy and Finance will crack down on unfair practices in the domestic distribution of imported goods to maximize the benefits of free trade agreements, it said. Minister Bahk Jae-wan said at a meeting yesterday the government will closely monitor import and retail prices of products most frequently used by consumers.
The statement was a warning to importers and retailers suspected of squeezing excessive profits out of Korea’s complicated distribution process after import prices fall as a result of free trade pacts, like the ones in force with Europe and Chile. Such practices have been blamed for counteracting the government’s efforts to tame inflation.
“The country needs to use the FTAs to the fullest in order to change the country’s economic paradigm for the better,” the finance minister said.
For agricultural and cattle products, Korea Agro-Fisheries & Food Trade Corporation will post prices at Smart Consumer, a consumer information Web site is has run since January. The smart consumer network will be available through mobile applications. Each month, Korea Customs Service will announce import prices of 31 kinds of agricultural, cattle and fisheries products.

2. LIVESTOCK ISSUES

Taiwan to intensify inspection of imported beef for ractopamine residues [Korean: BYK, MGF]

http://news.khan.co.kr/kh_news/khan_art_view.html?artid=201203191400511&code=970204

Summary: The Taiwan food safety authorities announced on March 18^th that it would test every shipment of imported beef that is coming from the United States, Canada, Australia, Panama and Nicaragua for ractopamine residues. S. Korea to Extend Tariff Quota For Pork, Dried Peppers:  South Korea will extend its tariff quotas for pork belly and dried peppers by three months to ensure their steady supply and help stabilize domestic prices, the finance ministry said Tuesday. The tariff quotas for the two items will be extended till the end of June, with Seoul to increase the pork belly quota by 70,000 tons. The ministry said the quota for dried peppers has been raised to 11,185 tons from 6,185 tons. Originally, both quotas were scheduled to expire on March 31.

ROKG to extend duty reduction for pork and dried red peppers [Korean: BYK]

http://www2.korea.kr/newsWeb/pages/brief/partNews2/view.do?dataId=155817630&call_from=extlink&call_from=extlink

Summary: The Korean government has decided to extend the duty free pork bellies up to end of June 2012.  It will also allocate an additional TRQ for pork bellies amounting to 70,000 MT.

3. MARKETING ISSUES

Paris Baguette, the Leading Bakery Shop Franchise, is Under Investigation by Fair Trade Committee [Korean, OSY]

http://news.donga.com/Society/New/3/03/20120321/44919409/1

Summary: According to the Fair Trade Committee, Paris Baguette, the leading bakery shop franchise in Korea with over 3,000 member shops, is currently under investigation.  The company has been accused of pressuring the member shops to increase investment for unnecessary items such as additional shop space and frequent renovation.

Paris Baguette HQ raided in probe[English, KJH]

http://koreajoongangdaily.joinsmsn.com/news/article/html/275/2950275.html

Summary: The Fair Trade Commission on Monday raided SPC Group, the largest bakery franchise in Korea and known for its Paris Baguette outlets, to see if it was muscling franchisees. The antitrust watchdog is probing whether the group has pressured franchisees to expand their store areas when renewing contracts with the company or to use construction companies affiliated with the group for decorating their stores.

4. OTHER MISCELLANEOUS ISSUES

ROK Ministry To Apply Low Carbon Standards to Agro-Fisheries Products[English, MGF] 

http://news.mk.co.kr/english/

Summary: The South Korean government will adopt 'low carbon certificate' to agro-fisheries products as well as industrial goods, and 'low carbon agro-fisheries products' are expected to be available in the Korean market starting from the second half (H2) of this year. The 'low carbon certificate' will be issued to products produced in the low carbon environment, in which greenhouse gas emissions are reduced. 

5. MIFAFF PRESS RELEASES

► MIFAFF to develop insect industry.  The Ministry hopes to expand the insect business which up to now has been limited to only educational purposes into a natural resource business.

► MIFAFF to introduce certification system for animal welfare farm.  The first sector for such certification will be with layers with plans to expand it to swine in 2013, broilers in 2014 and cattle in 2015

► Korea Food Show 2012 and Seoul Food 2012 to be merged into one show in 2012

► Check-off program for domestic wheat to be established

► FTA will provide a new opportunity for ag. exports

► MIFAFF to initiate a trial program for certification of low-carbon agriculture and livestock products

► MIFAFF to strengthen safety measures for fishing boats