Today's Date:  Tuesday, July 17, 2012

1. LIVESTOCK ISSUES

Volume of American Beef Imported in June was 20% Higher than the Month Before ‘BSE’ [Korean, OSY]

http://news.donga.com/Economy_List/3/01/20120716/47809775/1

Summary: Total importation of American beef into Korea in June amounted to 11,800 metric tons, over 20 percent higher than the import volume in January, the month before the outbreak of new BSE case earlier this year.  Meat traders in general agree that the Korean market has recovered some level of confidence in American beef.  Increased demand for affordable meat for the coming vacation season is likely to maintain a strong sales growth of American beef in local retail stores this summer.

Patient suspected of CJD found in Chungjoo city [Korean: BYK]

http://www.daejonilbo.com/news/newsitem.asp?pk_no=1014742

Summary: The government is conducting an epidemiological investigation on a patient that was reported as having been infected with CJD.  The 73 year old patient is currently undergoing treatment at Chungjoo Medical Center.

U.S. beef import not affected by BSE [Korean: BYK]

http://joongang.joinsmsn.com/article/aid/2012/07/17/8400031.html?cloc=olink|article|default

Summary: The 4^th BSE case that was found in April did not have any major impact on U.S. beef imports in Korea.  U.S. beef imports in April was 12,398 MT, which was 6.6 percent higher than the same period in 2011.  U.S. beef imports in May, right after the BSE case in April, slightly increased.  As for the 20 percent drop in cumulative imports during the first 5 months of 2012, USMEF explained that it was due to oversupply of beef in Korea, pointing out that imports of Australian beef had dropped by 30 percent during this period.  

Controversy over bill to “Immediately Suspend Imports When BSE is Found” [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=100&oid=001&aid=0005700751

Full translation:  (Seoul=Yonhap)  Reported by Hyun Suk Choi: A bill that would call for immediate suspension of imports when there is an additional case of BSE in the beef exporting country, such as the United States, is about to be discussed at the National Assembly. 

It is expected to be embroiled in controversy as some of the Assemblymen form the ruling party is expressing negative views about the bill and the Ministry for Food, Agriculture, Forestry & Fisheries (MIFAFF) is strongly opposing the proposed revision to the Act based on the concern that it would be in conflict with other domestic and international laws and the possibility of infringing upon the Administration’s authority.

◊  Controversy over the Article on “Immediate import suspension when there is a BSE case.”

According to the National Assembly and MIFAFF, the proposed bill for “Partial Amendments to the Act on Prevention of Epidemic Livestock Diseases” by Assemblyman Young Rok KIM, who is the Secretary for the Democratic United Party at the Standing Committee on Agriculture, Forestry, Fisheries and Food at the National Assembly and 126 other Assemblyman, is scheduled to be discussed at the full session of the Standing committee on July 27^th.

The major content of the proposed revision is to immediately suspend the import of beef and beef products if there is an additional case of BSE in the exporting country and dispatch a joint quarantine team to the country where the BSE case was found and have them conduct an onsite inspection.

Assemblyman Kim explained that he is proposing this amendment bill as the government had not suspended the imports after the 4^th BSE case in the United States in April, despite the fact that it had promised in June of 2008 to immediately suspend imports if there is a BSE case.

However, MIFAFF is pointing out that the draft proposal could be in conflict with the “Notice on health requirements for importation of U.S. beef and beef products” and the current Act on Prevention of Epidemical Livestock Diseases which allows for an immediate suspension of imports after determining the level of risk when there is an additional BSE case.

It was also concerned about the limitation that the bill would impose on the Administration’s policy judgment if there is an unconditional import restriction without any judgment based on science or international norms. 

An official from MIFAFF stated, “The proposed bill is in conflict with WTO’s SPS Agreement which is an international law that has the same effect as the domestic laws.”  The official stated that “Calling for an immediate suspension of imports when there is no risk to the public’s health or safety leaves a lot of room for trade dispute and has a high possibility of losing if it is legally sued during the dispute settlement.”

The explanation is that it could be a violation of the WTO SPS Agreement if there is a discriminatory measure being imposed on only imported beef as MIFAFF’s Emergency Guideline for BSE does not call for the prohibition of marketing and selling of beef when there is a BSE case in Korea. 

◊  Different viewpoints about the composition of the joint quarantine team

MIFAFF is also raising concerns about the article that calls for the composition of a joint quarantine team.  Making it a requirement to conduct an onsite investigation in the exporting country through a domestic law leaves room for penetrating the sovereignty right of the exporting country and that it would be difficult to actually implement this without the consensus of the exporting country.

It emphasized that the part that calls for the joint quarantine team to be composed of the same number of people recommended by the National Assembly and the Central Livestock Health Committee that falls under the Minister of MIFAFF is limiting the Administration’s authority to conduct investigation and carry out policies, etc.

The MIFAFF official stated, “It is better to eliminate the part about composing a joint quarantine team as there is no practical benefit.  Even under current rules, the report from the onsite investigation that is conducted when there is a BSE case is submitted to the Central Animal Health Committee which is composed on experts, producers and consumer organizations.  The content of what is released to the media is what was provided after receiving comments from the Committee.  Therefore, there is no need to set up a separate provision.” 

Assemblyman Kim’s side is maintaining the position that it will push through with the proposed amendments to the Act despite the opposition from the Government as it has been selected as the official party platform of the Democratic United Party.  However, it is expected that there will be contraction in trying to pass this bill at the National Assembly as some parts of the Saenuri party is opposing this bill.

An official at the Assemblyman Kim’s office stated that “It is not an infringement of the Government’s authority as it is merely shaping up the provision that is not clear about suspending imports when there is a BSE case.”   He pointed out that “the concern over losing at the WTO dispute panel is exaggerated when taking into consideration of the fact that the United States is the country that has been sued the most.”

An official from the Assemblyman Moon Pyo Hong of the Saenuri Party stated, “As the ruling party that had looked at suspending quarantine inspection rather than import suspension when there is a BSE case, it is difficult to agree to the assertion for an immediate import suspension which could be out of the step with WTO.  As this is an issue that cannot be merely dealt with based on the public’s sentiment, we will review this with caution.”

2. OTHER MISCELLANEOUS ISSUES

US Cherry Challenges Domestic Fruits. [Korean, WYS]

http://news.khan.co.kr/kh_news/khan_art_view.html?artid=201207170335005&code=920501

Summary : Due to the effect of FTA, quantity of cherry import has nearly doubled. In June, cherry has placed number one sales of in import fruits in Super Supermarkets. The problem is because many cherry exporters are taking advantage of  the reduced tariff for cherries from FTA, domestic peach and plumb are suffering a bitter blow.   

American Cherries Threat Local Plums and Peaches [Korean, OSY]

http://www.yonhapnews.co.kr/economy/2012/07/16/0318000000AKR20120716171900002.HTML

Summary: Nonghyup Economic Institute (NHEI) under the Korea National Agricultural Cooperatives Federation (NACF) reported that imported American cherries could potentially reduce the market for local summer fruits, particularly plums and peaches.  NHEI pointed out that import volume of American cherries this year was likely to hit a record high.  During the first half this year, total imports of American cherries amounted to 3,950 metric tons, up 82 percent from the same period last year.  Elimination of the import duty (24%) under the KORUS FTA should be a part reason for this strong growth.  In addition, stronger sales efforts by local large-scale retailers also drove up the consumer demand on American cherries.  For example, Emart, the largest discount retail chain in Korea, started to direct import American cherries through a partnership with Stemilt, the largest cherry supplier in the U.S., this year.  Large retailers have also been staging sales promotions on American cherries in partnership with American cherry grower organizations such as NWCGA.  Other local summer fruits that can potentially see reduced demand include green house farmed tangerine oranges and Korean melons.