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Nelson Seeks Action in Face of Resumed South Korean Beef Ban

Southwest Nebraska News, McCook, Nebraska

Nelson Seeks Action in Face of Resumed South Korean Beef Ban

7 June 2007

This week, South Korea once again instituted a blanket ban on U.S. beef imports after a paperwork error led to U.S. beef intended for domestic consumption to be sent to South Korea. Nebraska’s Senator Ben Nelson today announced that he would seek a U.S. response to the South Koreans’ action.

“This is just the latest in a series of excuses the South Korean government has made to shut off American beef imports,” said Nelson. “Clearly, we need to send a strong message to the Koreans that we are sick and tired of their unfair bans on U.S. beef.”

Today, Senator Nelson wrote to Senate Finance Committee Chairman Max Baucus, U.S. Trade Representative Susan Schwab, and Korean Ambassador Lee Tae-sik. Since the U.S.-Korea Free Trade Agreement will be considered by the Finance Committee, Nelson asked Baucus to withhold consideration of the FTA until Korea fully re-opens its market. Nelson asked Representative Schwab to file an action against South Korea with the World Trade Organization (WTO) in light of the new ban. And he expressed to Ambassador Lee his continued frustration with Korea and its resorting to total bans in the face of minor problems.

“American beef has been declared safe by the international organization that tracks animal health, the OIE. There is no reason why all cattle producers should be penalized because of one company’s error. It looks more and more like the Koreans are simply looking for excuses to stop American beef imports,” said Nelson. “I will continue to push for action in the face of their unfair practices. We cannot ignore how this is hurting our beef producers and our economy.”

The full text of Nelson’s letters follow:

June 6, 2007

The Honorable Max Baucus, Chairman

Committee on Finance

United States Senate

219 Dirksen Senate Office Building

Washington, DC 20510

Dear Chairman Baucus:

I write today regarding Korea’s continued unfair treatment of U.S. beef and the pending Free Trade Agreement (FTA) between the United States and the Republic of Korea. I applaud your strong stance regarding this FTA and Korea’s treatment of U.S. beef, and I want to thank you for your leadership on this matter.

As you know, the Republic of Korea recently announced that it would suspend the issuing of import certificates for U.S. beef based on two recent shipments of beef containing boxes which were not in compliance with the export agreement - the very same agreement Korea violated last fall when it rejected three shipments of U.S. beef which it admitted posed no health risks. Like you, my patience with Korea’s unfair treatment of U.S. beef has run out; and I would encourage you, as Chairman of the Finance Committee, to withhold consideration of the FTA until Korea ceases its unfair treatment of U.S. beef and adheres to the World Organisation for Animal Health (OIE) classification and guidelines.

I have stated previously that I will not support the FTA with Korea until that country ends its unfair trade practices and agrees to adhere to international, science-based standards for U.S. beef by bringing its import requirements into alignment with the OIE guidelines. I disapprove of the FTA because Korea’s actions have effectively closed the third largest market for U.S. beef and have damaged the reputation and global standing long enjoyed by this important industry. I have strong concerns that an FTA with Korea at this juncture could be viewed as validating Korea’s actions and could establish a precedent which is dangerous not only to the U.S. beef industry, but to the rest of the American agricultural sector as well. Although I have long been a strong supporter of free trade, the agricultural and beef industries are too important to be jeopardized in this manner.

With the ink barely dry on the FTA and before it has been signed by the President, we find ourselves once again facing a de facto ban on U.S. beef by Korea, one that is unfair and unreasonable and which further damages the U.S. beef industry. This latest ban is in spite of the OIE’s May 22, 2007, vote classifying the United States as a “controlled risk” country. This classification was supposed to advance negotiations with Korea, helping to convince them to bring their import requirements for U.S. beef into alignment with international standards. Today’s announcement can only be seen as a significant step in the wrong direction.

The United States must insist on fairness from all its trading partners, and we should not permit unscientific food safety and human health concerns to be used as cover for unfair trade practices. Korea has violated this fundamental concept of fairness for far too long, and the United States should not reward Korea’s actions with an FTA. As such, I urge you to withhold consideration of the Korean FTA by the Finance Committee until such time as Korea’s unfair trade practices have ended and the trade in U.S. beef has been fully restored.

I appreciate your consideration of my request and your strong leadership on this issue.

Sincerely,
E. Benjamin Nelson

United States Senator

June 6, 2007

The Honorable Susan Schwab

U.S. Trade Representative

Executive Office of the President

600 - 17th Street, N.W.

Washington, DC 20508

Dear Ambassador Schwab:

I write regarding Korea’s recent announcement that it would suspend its issuing of import certificates for U.S. beef based on two recent shipments of beef containing some boxes which were not in compliance with the export agreement - the very same export agreement that Korea violated multiple times last fall when it rejected three shipments of U.S. beef that Korean officials admitted posed no health risks. Ambassador Schwab, Korea’s continued unfair trade practices targeting U.S. beef should no longer be tolerated; and the United States should immediately proceed against Korea in the World Trade Organization.

In April 2007, the Office of the U.S. Trade Representative (USTR) completed a Free Trade Agreement (FTA) with Korea despite the myriad of concerns from Congress regarding Korea’s unfair treatment of U.S. beef. The USTR did not get an agreement from Korea, or even a clear understanding, for resolving these beef trade issues. And now, with the ink barely dry on the FTA and before it has been signed by the President, the United States finds ourselves once again facing a de facto ban on U.S. beef by Korea, one which is unfair, unreasonable, and that further damages the American beef industry.

Moreover, the World Organisation for Animal Health (OIE) voted on May 22, 2007, to classify the United States as a “controlled risk” country with regard to bovine spongiform encephalopathy (BSE). This classification was supposed to advance negotiations with Korea, helping to convince officials to bring their import requirements for U.S. beef into alignment with international, science-based standards. Korea’s announcement can only be seen then as a significant step in the wrong direction.

The United States must insist on fairness from all its trading partners, and we should not permit unscientific food safety and human health concerns to be used as cover for unfair trade practices. Korea has violated this fundamental concept of fairness for far too long, and the United States should no longer tolerate Korea’s actions. As such, I hereby urge the USTR to immediately proceed against Korea in the World Trade Organization, based on continued unfair treatment of U.S. beef. If the USTR declines to initiate proceedings against Korea, I would appreciate a thorough explanation of that decision as soon as possible so that I may further evaluate my options.

I appreciate your attention to my request, and I look forward to a swift response.

Sincerely,

E. Benjamin Nelson

United States Senator

June 6, 2007

His Excellency Lee Tae-sik

Ambassador

Republic of Korea

2450 Massachusetts Avenue, N.W.

Washington, DC 20008

Dear Mr. Ambassador:

I was deeply disappointed to learn that the Korean government has again decided to suspend U.S. beef imports by relying on unreasonable and unscientific barriers which prevent America’s beef producers from being able to export to what was once their third largest market.

As you know, Korea announced yesterday that it would suspend the issuing of import certificates for U.S. beef, based on two recent shipments containing boxes that were not in compliance with the export agreement - the same agreement Korea violated last fall when it rejected three shipments of U.S. beef based upon bone fragments which were not considered specified risk material and which did not pose any risk to human health or the safety of the food supply. And now, with the ink barely dry on the Free Trade Agreement (FTA) and before it has been signed by the President, we again face a de facto ban on U.S. beef which is unfair, unreasonable, and further damages the U.S. beef industry. This latest ban is also in spite of the World Organisation for Animal Health’s (OIE’s) May 22, 2007, vote classifying the United States as a “controlled risk” country. It was my hope this classification would advance negotiations with Korea to bring the import requirements for U.S. beef into alignment with international standards. Korea’s announcement can only be seen as a significant step in the wrong direction.

I have previously informed you that I would not support the FTA until Korea ends its unfair trade practices and agrees to adhere to international, science-based standards for U.S. beef by bringing its import requirements into alignment with OIE guidelines. The United States must insist on fairness from all of its trading partners, and I do not believe we can permit food safety and health concerns to be used as cover for unfair trade practices. Korea has violated this fundamental concept of fairness for far too long, and I do not believe the United States should reward these actions with an FTA.

As such, I am taking two actions today. First, I am writing to U.S. Senator Max Baucus, the Chairman of the Senate Finance Committee, regarding my position and requesting that he withhold his Committee’s consideration of the FTA until Korea has resumed full and fair importation of U.S. beef in accordance with the OIE classification. Second, I am writing Ambassador Susan Schwab, the United States Trade Representative, requesting that the United States immediately proceed against Korea in the World Trade Organization.

Mr. Ambassador, I realize you have worked diligently to try and bring about a resolution to these issues, and I thank you for your efforts. However, Korea appears unwilling to resume full and fair trade of what I consider to be the best and safest beef in the world, and I believe the United States must take action on behalf of a vital industry which has suffered considerable damage as a result.

Sincerely,

E. Benjamin Nelson

United States Senator


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