Welcome to the Agricultural Trade Office (ATO) of the U.S. Embassy in Seoul, Korea.

Market Information > 한국 농식품 시장뉴스

한국 농식품 시장뉴스

March 10, 2011

2011.03.10

FAS/Seoul Monitoring of Media Reporting on Agricultural Issues

Today's Date: March Thursday 10, 2011

For Coverage: March 09 - 10, 2011

1. BILATERAL/MULTILATERAL ISSUES

National Assembly agrees to undergo process for ratifying Korea-EU FTA in April [Korean: BYK]

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=100&oid=001&aid=0004951366

Summary: Assemblyman Kyung Pil Nam, Chairman of the Assembly’s Standing Committee for Diplomatic, Trade and Unification stated that the ruling and opposition party had agreed to hold a full session meeting in April and that he would complete the bill for ratifying the Korea-EU FTA during this meeting and submit it to the floor.

Senator Baucus states that he will not handle the KORUS FTA separately [Korean: BYK]

http://economy.hankooki.com/lpage/worldecono/201103/e2011031008525569760.htm

Summary: Senator Max Baucus stated that unless the Obama Administration submits the three pending FTA bills (Korea, Panama and Columbia) together, he will not allow the KORUS FTA to be dealt separately. He also asked USTR Ron Kirk to reach an agreement with Korea to begin discussions for full liberalization of the U.S. beef market.

Korea to formally sign FTA deal with Peru on March 21^st [Korean: BYK]

http://www.etoday.co.kr/news/section/newsview.php?TM=news&SM=0799&idxno=414387

Summary: According to the Peru National news service company, Andina, Korea and Peru will formally sign the FTA package on March 21th when the Peru Trade Minister visits Korea. Both countries had reached an agreement on FTA and initialed the FTA package on August 30, 2010. The FTA bill will eliminate the duties for all of the commodities within 10 years from the implementation. The Peru Trade Minister projected that the FTA between the two nations would increase the trade volume by 50 percent within a few years after implementation.

USTR Repeats Will to Ratify Korea FTA First [English, MGF]

http://rki.kbs.co.kr/english/news/news_Po_detail.htm?No=79985

Summary: U.S. Trade Representative Ron Kirk says the Obama administration is prepared to begin deliberating on the text of the U.S.-Korea free trade agreement (FTA). He urged Congress to begin discussions on the deal's ratification "without delay." Kirk also told a Senate Finance Committee hearing that although the goal is to have all three pending FTAs with South Korea, Panama and Columbia ratified, there are issues that need to be resolved regarding the Panama and Columbia agreements. Kirk said he will try to resolve the remaining issues on the deals with Colombia and Panama "as quickly as possible this year" so the Obama administration could "submit them to Congress immediately thereafter." But he reiterated the stance that the Korea FTA should be submitted first. A number of high-ranking members of Congress, including chairman of the Senate Finance Committee Max Baucus and chairman of the House Ways and Means Committee Dave Camp, are of the stance that the three agreements should be approved simultaneously.

'S.Korea, Peru to Officially Sign FTA Mar. 21' [English, MGF]

http://rki.kbs.co.kr/english/news/news_Ec_detail.htm?No=79991

Summary: South Korea and Peru are expected to officially sign their free trade agreement on March 21st. The state-run Peruvian news agency Andina cited a statement by the Peru government as saying that the two sides will officially sign the FTA in Seoul on the 21st. It also says Peru's Trade and Tourism Minister Eduardo Ferreyros will visit South Korea to clinch the deal. The two sides concluded free trade talks last August in Lima after 17 months of negotiations. Once the FTA takes effect, Minister Ferreyros expects bilateral trade expansion of more than 50 percent in the first several years among other major economic benefits.

Clinton: KORUS FTA is a Model for Asia Pacific [English, MGF]

http://rki.kbs.co.kr/english/news/news_In_detail.htm?No=79984

Summary: U.S. Secretary of State Hillary Clinton stressed the importance of swiftly ratifying the free trade agreement (FTA) with South Korea on Wednesday. Clinton said at the First Senior Officials Meeting for the Asia Pacific Economic Cooperation (APEC) Forum in Washington that the U.S.-Korea FTA represents a major achievement for both Korea and the U.S., and that it can serve as a model for the region. She said that in the coming months, the U.S. will take concrete steps towards strengthening an open, free, transparent, and fair economic platform in the Asia Pacific by accomplishing multiple goals, one of which she said was achieving congressional approval of the Korea FTA. She said the deal with South Korea will provide benefits that cannot be expressed in dollars, such as a closer political and strategic partnership with a key ally. Clinton said Washington's goal is to have all three pending FTAs with Korea, Panama and Colombia, along with their outstanding issues, addressed and approved by Congress this year.

US Republicans Want FTAs Handled Simultaneously [English, MGF]

http://rki.kbs.co.kr/english/news/news_In_detail.htm?No=79956

Summary: The U.S. Republican Party says the ratification of free trade agreements (FTA) with South Korea, Colombia and Panama should be handled simultaneously. House Ways and Means Committee Chairman David Camp on Tuesday repeatedly urged the Obama administration to push forward ratification efforts for free trade agreements with Colombia and Panama.

China FTA to be concluded within Pres. Lee`s term: source [English, CSY]

http://english.donga.com/srv/service.php3?bicode=050000&biid=2011031032428

Summary: The Korean government will conclude a free trade agreement with China before President Lee Myung-bak’s term ends, said a high-ranking official in Seoul Wednesday. Trade Minister Kim Jong-hoon will have a one-on-one meeting with a minister-level official at the Chinese Commerce Ministry either late this month or early next month on when to start official negotiations for the deal’s conclusion. “China said it wants candid talks and I’ll listen to see what their true intent is,” he said.

Congress urged to move quickly for Korea FTA's ratification [English, CSY, OYS]

http://english.yonhapnews.co.kr/national/2011/03/10/65/0301000000AEN20110310000500315F.HTML

Summary: The Obama administration Wednesday repeated calls for Congress to move quickly to approve the pending free trade agreement with South Korea. Speaking to a Senate Finance Committee hearing, U.S. Trade Representative Ron Kirk said, "This week we informed your committee we are in fact prepared to begin deliberative work with you on the text of the U.S.-Korea free trade agreement as soon as you are ready to do so."

2. BIOTECHNOLOGY ISSUES

GM soy found in many ham and sausages manufactured by major food companies in Korea (Korean, CSA)

http://news.khan.co.kr/kh_news/khan_art_view.html?artid=201103091825541&code=940701

Summary) Seoul Environment Movement Coalition held a press conference on March 9 and said, “ham and sausages manufactured by Korean leading food companies contained GM ingredients.” This group collected 24 ham and sausage products sold in the market and requested GM testing. The result showed that six out of 24 products tested positive for GM soy, an event developed by Monsanto. The six products are relatively cheap products so the group claimed that local manufacturers use GM raw materials in making cheap products. As Korea requires GMO labeling for only top five ingredients, products that contain GM raw materials as the sixth are exempt from GM labeling. It appears that most products with a positive result contains soy as not the top five but a minor ingredient so they did not carry GM label. The Coalition demanded to tighten the current GMO labeling requirements for public’s right to know.

3. ECONOMIC ISSUES

Korea`s food inflation in Jan. grows fastest in OECD [English, CSY]

http://english.donga.com/srv/service.php3?bicode=050000&biid=2011031032458

Summary: Korea`s food inflation in January grew the fastest among member countries of the Organization for Economic Cooperation and Development, the OECD said in a report Wednesday. Inflationary pressure stemmed from supply side shocks such higher international prices of grain and commodity, while demand side factors such as a higher-than-expected inflation rate were also partially responsible. The government fears that high inflation could put a dent in economic recovery. Korea`s food prices jumped 11.6 percent in January from a year earlier, the steepest hike among the OECD`s 34 member nations. The rate for Estonia was the second highest at 11.4 percent after leading in December last year with 12.2 percent and Korea not far behind with 10.6 percent.

PPI Rose by 2-Yr High Last Month [English, MGF]

http://rki.kbs.co.kr/english/news/news_Ec_detail.htm?No=79987

Summary: The producer price index (PPI) has risen by its highest rate in two years and three months. The Bank of Korea says the producer price index, which measures the average change over time in the selling prices received by producers for their products, rose six-point-six percent in February year-on-year, which is the highest figure posted since late 2008. The increase in the index is attributed to growth in producer prices in a number of sectors. Producer prices rose 74 percent for pork, 126 percent for garlic and 93 percent for onions in February, while producer prices rose eleven percent for gasoline and 28 percent for kerosene.

S. Korea's PPI gain hits over 2-year high in Feb. [English, OYS]

http://english.yonhapnews.co.kr/news/2011/03/09/0200000000AEN20110309010700320.HTML

Summary: South Korea's producer prices rose at the fastest pace in more than two years in February on a hike in oil and commodity prices, the central bank said Thursday, lending power to prospects for a rate hike. The producer price index (PPI), a barometer of future consumer inflation, climbed 6.6 percent in February from a year earlier, up from 6.2 percent the previous month, according to the Bank of Korea (BOK).

Will food crisis revisit Korea? [English, OYS]

http://www.koreatimes.co.kr/www/news/biz/2011/03/123_82801.html
Summary: Food has been regarded as a low-priced commodity in industrialized Korea as supply of the country’s staple rice outstripped demand by large margins over the past few decades. However, concerns have surfaced that Koreans may soon be unable to purchase food as cheaply as they did in the past with double-digit price increases continuing to plague the economy. According to the latest data compiled by the Organization for Economic Cooperation and Development (OECD), Korea’s food costs appreciated 11.6 percent in January from a year before, the highest among member countries

Korea's Growth Expected to Slow to 4.5 Percent This Year [English, OYS]

http://english.chosun.com/site/data/html_dir/2011/03/10/2011031000739.html

Summary: Korea's economy is expected to expand by 4.5 percent this year, down from 6.1 percent in 2010, Standard & Poor's said on Wednesday. Korea put itself on the path to recovery by posting above-average growth last year, but increasing uncertainties in the global economy could adversely affect the country's exports this year, the financial researcher said. S&P also predicted that the domestic market will remain stagnant, as demand in the private sector, although recovering, is not strong enough to make up for weak exports and investment.

4. LIVESTOCK ISSUES

Postmortem on FMD: Steps weren’t followed [English, CSY]

http://joongangdaily.joins.com/article/view.asp?aid=2933266

Summary: Since 2000, Korea has had five FMD outbreaks - in March 2000, May 2002, Jaunary 2010, April 2010 and the most recent one that began late last year. In 2003, the central government published the “White Paper on FMD,” a 343-page handbook that urged government officials to launch a step-by-step system of vaccinating animals and to send animal experts to each village during an outbreak. Experts say if the government had followed the instructions in the book, it could have prevented the disease from spreading nationwide. But quarantine officials argue that following the manual, especially in reporting outbreaks to the central government, was not as easy as it seems. According to the handbook, all quarantine officials are first supposed to report potential FMD cases to the Ministry for Food, Agriculture, Forestry and Fisheries. Then the ministry is supposed to close off the region and release an official statement to the press.

5. MARKETING ISSUES

‘Local Food’ Movement Gathers More Followers under Rising Food Prices [Korean, OSY]

http://news.donga.com/Economy/Market/3/0108/20110309/35441539/1

Summary: While retail price of fresh produce went up over 25 percent in February, ‘local food’ movement is reportedly gathering more followers as a way to obtain fresh produce at cheaper price. Conventional distribution of fresh agricultural product goes through many middlemen, which adds cost to the price of the product. On the other hand, ‘local food’ movement can minimize the distribution cost by connecting the local farmers directly with the retailers. Leading hypermarket retailers, including 21 of E-Mart stores, are already practicing the idea of ‘local food’ movement in that many of their stores are selling locally purchased fresh produce with minimal distribution mark ups. E-Mart says that it will increase the number of stores that practice ‘local food’ movement.

6. OTHER MISCELLANEOUS ISSUES

SEATTLE (AP) ― Starbucks customers saw something new Tuesday when they sipped their coffee. [English, OYS]

http://www.koreaherald.com/business/Detail.jsp?newsMLId=20110309000434

The Seattle-based company rolled out its new words-free logo Tuesday on all its cups. Signs also changed at a handful of stores, and the new logo will show up on more storefronts in the future. The Associated Press first reported in January that Starbucks was updating its logo and would introduce it this month in conjunction with its 40-year anniversary. Starbucks on Tuesday also introduced a number of new coffee flavors and baked goods as part of the anniversary celebration. In addition, Starbucks said Tuesday it plans to roll out its Via instant coffee in China starting in April, according to a report in the Wall Street Journal.

A coffee cup bearing the new Starbucks Corp. logo is shown in Seattle on Tuesday. (AP-Yonhap News)

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”.

View List >