WTO UPHOLDS RULING IN FAVOR OF U.S. BEEF INDUSTRY

WASHINGTON D.C. (Dec. 15, 2000) - A recent World Trade Organization ruling that upheld a decision declaring Korea’s import regime to be illegal means U.S. beef producers likely will continue to expand their exports to Korea, the National Cattlemen’s Beef Association said today. 

A WTO appellate panel on Monday upheld an August ruling that declared Korea’s system of restricting 90 percent of imported beef from retail market channels to be illegal. The panel also let stand a ruling that declared Korea’s excessive subsidies to its producers violate its WTO commitment to reduce domestic support. 

“This ruling shows that the WTO can be a tool to help foster an environment where international trade can work for U.S. cattle producers,” said Dana Hauck, a producer from Delphos, Kan., and chairman of the beef industry International Markets Committee. “We are pleased with the ruling and look forward to expanding demand for our product in Korea.” 

The case began nearly two years ago when the United States requested WTO dispute settlement consultations with Korea. In April 1999, the WTO formed a panel to review the case after Australia joined the complaint. In August, the WTO ruled in favor of the United States and Korea followed with an appeal.

The panel found that Korea’s requirement that imported beef and domestic beef be sold in separate retail stores is inconsistent with its obligations under the General Agreement on Tariffs and Trade. The requirement has excluded imported beef from about 90 percent of the 50,000 retail outlets in Korea. 

Korea is currently the No. 3 export market for U.S. beef. The decision is an opportunity for U.S. beef producers because under Korea's WTO schedule it is required to end its current quota on imported beef at the end of this year. Korea imports about 202,000 metric tons of beef each year, and nearly half of that is from the United States. “With the end to the quota, that number will continue to grow,” Hauck said. 

# # #

Producer-directed and consumer-focused, the National Cattlemen's Beef Association is the  trade association of America’s cattle farmers and ranchers, and the marketing organization for the largest segment of the nation’s food and fiber industry.