Economics and Trade Relations
South Korea Agrees to Import More U.S. Rice
USTR announces U.S.-South Korea agreement on rice imports
3 January 2005
The government of the Republic of Korea has agreed to double the amount of U.S. rice it imports over the next 10 years, according to an announcement by U.S. Trade Representative (USTR) Robert B. Zoellick and U.S. Department of Agriculture Secretary Ann M. Veneman.
According to a press release issued December 30 by the USTR, South Korea will provide guaranteed access for 50,000 metric tons of U.S. rice each year and make imported rice available directly to Korean consumers.
Following is the text of the USTR press release:
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
EXECUTIVE OFFICE OF THE PRESIDENT
WASHINGTON, D.C. 20508
USTR PRESS RELEASES ARE AVAILABLE ON THE USTR WEBSITE AT WWW.USTR.GOV
2004-89
FOR IMMEDIATE RELEASE:
DECEMBER 30, 2004
CONTACT:
RICHARD MILLS / NEENA MOORJANI
(202) 395-3230
United States and Republic of Korea Reach Agreement on Rice Imports
WASHINGTON - U.S. Trade Representative Robert B. Zoellick and U.S. Department of Agriculture Secretary Ann M. Veneman announced today that they have reached agreement with the Republic of Korea to obtain greater market access opportunities for U.S. rice exporters. As a result of these negotiations, Korea will double the amount of rice it imports over the next 10 years, provide guaranteed access for 50,000 metric tons of U.S. rice each year, and make imported rice available directly to Korean consumers.
"In negotiating the agreement, we focused on improving the quantity and quality of the openings for U.S. rice exporters in the Korean market," said Zoellick. "This will allow our competitive rice industry to make significant gains in the Korean market. Not only will U.S. rice imports increase, but the quality of access will be substantially improved -- Korean consumers will now be able to buy rice from the United States at the retail level."
"This agreement will give U.S. farmers an opportunity to expand sales to Korea, and it will allow Korean consumers access to a high-quality American product. This marks yet another step in gaining greater access for our growers to expanding markets across the Asian region," Veneman said.
To qualify for continued 'special treatment' under the rules of the World Trade Organization (WTO), Korea is required to notify the WTO of the results of these negotiations by the end of this year. The terms agreed upon during the negotiation will be reviewed by WTO Members. If the Members approve these terms by consensus, Korea will implement them in 2005.
Background:
Under WTO rules established during the Uruguay Round, Korea designated rice as a sensitive product. Instead of liberalizing its rice import regime by establishing a tariff-rate quota, Korea committed to import a specific level of rice imports for a period of 10 years. That period ends on December 31, 2004. The WTO rules also provided that Korea's market access quota for rice, known as "special treatment," could continue for an additional length of time, but only after individual WTO Members had the opportunity to negotiate concessions in terms of how Korea would continue the 'special treatment' arrangement. Earlier this year, Korea notified its trading partners that it sought an extension of the 'special treatment' for rice, and the Korean government began negotiating with the United States and eight other countries that formally expressed interest.
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(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site:
http://usinfo.state.gov)