U.S. News: South Korea Agrees to Lift Ban on U.S. Beef Exports
WASHINGTON -- The U.S. and South Korea agreed on a plan to lift the Asian nation's ban on American beef exports, removing a major impediment to action in Congress on a free-trade deal with South Korea, though significant hurdles remain.</br></br>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 this week among trade officials for both countries. Seizing on the breakthrough, the White House vowed to press anew for action on the landmark trade deal.</br></br>U.S. 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." Under the agreement, all U.S. beef and beef products from cattle of all ages will be allowed to be exported to South Korea. Before the ban, South Korea was the third-biggest importer of U.S. beef, buying $790 million worth in 2003. Since then, it has relied on Australia as its main supplier.</br></br>For cattle ranchers and beef producers, the reopening of the South Korean beef market "is a very good shot in the arm," said feedlot operator J.D. Alexander, based in Pilger, Neb. American beef producers are struggling to remain profitable as prices for corn feed and fuel continue to soar, causing cattle ranchers to liquidate their herds at a rapid clip to keep costs under control.</br></br>Gregg Doud, chief economist at the National Cattlemen's Beef Association, says South Korea's market could become the top beef customer for the U.S., potentially amounting to $1 billion annually.