Korean protests ’bad’ for Aussie beef
The Age | June 12, 2008
Korean protests ’bad’ for Aussie beef
Mass protests in South Korea against US beef are bad news for Australian exporters, costing millions of US dollars in lost sales and jeopardising a crucial free trade deal, the Cattle Council says.
Concerns US beef imports may contain mad cow disease triggered the South Korean protests, which have engulfed the country in recent weeks.
David Inall, executive director of the Cattle Council of Australia, said fears about meat safety were hurting Australia’s $800 million annual beef trade to Korea.
"Overall, it’s bad news for beef," he told AAP.
"Obviously these protests aren’t good news for anybody."
South Korea is Australia’s third-largest beef market, although exports the country are down 13 per cent as demand for all kinds of meat falls.
"It’s the mood in the country ... when consumers read words like beef is unsafe ... it just sends a bad message around the country and consumers do get frightened," Mr Inall said.
"We’re watching it very closely."
The protests, which are now threatening the government of president Lee Myung-bak, were sparked by a free trade agreement between Korea and the US.
Korea agreed to accept US beef imports which were blocked after a mad cow - known as BSE - scare in 2003.
But consumers don’t want a return of US beef and have taken their concerns to the streets with up to 100,000 people protesting this week.
Australia and South Korea are negotiating their own free trade deal which Australia sees as crucial to maintaining market share given that the US, a rival beef supplier, has won dramatic tariff cuts.
Mr Inall said the protests had thrown a spanner in the works.
"There is certainly a mood of uncertainty in Korea about trade," he said.
"This is going to make it more challenging than we would have originally expected."
The industry was working with the Australian government on revising the free trade agreement strategy.
