South Korea to end ban on US beef exports

The US and South Korea have agreed on a plan to lift the Asian nation's ban on US beef exports, removing a major impediment to action in Congress on a free-trade deal with South Korea, though significant hurdles remain.

The agreement came amid South Korean President Lee Myung-bak's first formal visit to Washington since taking office two months ago and was the result of a furious round of negotiations among trade officials for both countries, the Wall Street Journal reports.

Seizing on the breakthrough, the White House vowed to press anew for action on the landmark trade deal.

US Trade representative Susan Schwab said the new protocol providing for renewal of beef trade will take effect in mid-May and will allow for "a full reopening of the market."

US agriculture secretary Ed Schafer welcomed the announcement that "South Korea has fully complied with international trade standards regarding beef and beef products".

He pointed out that in May 2007, the World Organisation for Animal Health (OIE) formally classified the US as a controlled risk country for BSE. This meant that US BSE regulatory controls were considered effective and that US beef and beef products of all ages could be safely traded.

He also stressed the importance of the Korea-US FTA, which will see the removal of the current 40% tariffs on US beef. He said this would generate tariff savings of approximately $500m a year for US beef exporters. The US International Trade Commission estimates that under the FTA, US beef exports to South Korea could increase to $1.8 billion.