{"id":2201161,"date":"2023-05-25T19:36:26","date_gmt":"2023-05-25T10:36:26","guid":{"rendered":"https:\/\/koreapro.org\/?p=2201161"},"modified":"2023-05-25T19:36:26","modified_gmt":"2023-05-25T10:36:26","slug":"high-steaks-the-complicated-politics-of-beef-and-food-imports-in-south-korea","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/05\/high-steaks-the-complicated-politics-of-beef-and-food-imports-in-south-korea\/","title":{"rendered":"High steaks: The complicated politics of beef and food imports in South Korea"},"content":{"rendered":"
The evolving dynamics of agricultural and food trade between South Korea and the European Union promise big economic benefits for South Korean consumers, such as access to a wider range of products and potential cost savings. But Seoul will likely have to balance those benefits against potential negative impacts on domestic producers.<\/span><\/p>\n After meeting with EU leaders earlier this week, President Yoon Suk-yeol, European Council President Charles Michel and European Commission President Ursula von der Leyen released a comprehensive <\/span>joint statement<\/span><\/a> that touched on topics ranging from the war in Ukraine to climate issues.<\/span><\/p>\n As part of the joint statement, the South Korean and EU leaders agreed to implement a Sept. 2022 agreement on the recognition of EU regionalization to effectively improve market access for agri-food products to each other\u2019s markets, such as fruits and meat products, including the export of EU beef to Korea and Korean poultry products to the EU.<\/span><\/p>\n ECONOMIC IMPACT<\/b><\/p>\n Even though the <\/span>ROK-EU free trade agreement<\/span><\/a> (FTA) had provisionally applied since July 2011 before it was formally ratified in Dec. 2015, applying the FTA to the agri-food trade has been a contentious issue.<\/span><\/p>\n As a result of the spreading of the bovine spongiform encephalopathy (BSE) disease in <\/span>2000<\/span><\/a>, South Korea joined a chorus of countries that <\/span>banned the import<\/span><\/a> of meat, bone meal and live cattle from Western European countries where the presence of the illness had been confirmed.<\/span><\/p>\n The ROK <\/span>lifted<\/span><\/a> its import restriction on beef and beef products from some EU member states \u2014 Denmark and the Netherlands \u2014 after almost 20 years in 2019, which has opened the way for greater trade volume between the two sides.<\/span><\/p>\n Meanwhile, South Korea\u2019s beef imports are growing. In 2022, the ROK imported <\/span>more than 530,000 tons<\/span><\/a> of beef, which was 2.3% higher than in 2021, and over half of that came from the U.S. EU meat exports to South Korea that same year amounted to about <\/span>$1.05 billion<\/span><\/a>, demonstrating the potential agri-food sector trade.<\/span><\/p>\n However, these changes in trade dynamics come at a time when global food prices are escalating, and South Korea is feeling the effects. The cost of food in South Korea increased by <\/span>5%<\/span><\/a> in April 2023 compared to the same month last year. <\/span>Rising global wheat prices<\/span><\/a>, due to the conflict in Ukraine, have resulted in an increase in the cost of animal feed, contributing to <\/span>higher meat prices<\/span><\/a> in Korea. Beef prices rose by 4.6%, while pork prices rose by 15.9% in April.<\/span><\/p>\n These price escalations could potentially lead to greater demand for imported meat from the EU, as it could be cheaper than domestically produced meat, even after accounting for import tariffs and transportation costs.<\/span><\/p>\n While these imports could potentially ease the pressure on domestic meat prices, they could also negatively impact domestic producers, particularly beef and pork farmers, who may struggle to compete with cheaper imports. To mitigate these impacts, the South Korean government has <\/span>announced<\/span><\/a> subsidies for Korean cattle farmers of up to $200 per head, alongside higher compensation in case of a <\/span>cattle disease outbreak<\/span><\/a>.<\/span><\/p>\n