South Korea aims to retain agriculture tariffs at EU FTA talks
Yonhap | Thursday November 15, 2007
South Korea Aims To Retain Agriculture Tariffs At EU FTA Talks
SEOUL, Nov 15 Asia Pulse — South Korea will try to retain current tariff rates on sensitive agricultural goods at the upcoming free trade pact talks with the European Union (EU), the government said Thursday.
The Ministry of Agriculture and Forestry said that at next week’s meeting in Brussels negotiators will stress the need to hold onto various tariffs measures to protect local farmers from an influx of imports from the 27-member economic bloc.
It said rice will be exempted from free trade agreement (FTA) talks altogether, while Seoul will stress the need to hold onto some protection for grain, vegetables and fruits. South Korea’s import tariffs on grain, including barley stand at 269-515 per cent, while those for vegetables surpass 100 per cent for such produces as chilli peppers, garlic, onions and sesame seeds. Import duties on fruits stand at over 45 for most goods, reaching 144 per cent for tangerines.
"Details cannot be revealed, but in addition to holding onto current tariffs, other options like lowering import duties and implementing flexible tariff rates are being considered," a ministry official said.
He said discussions are to be held on special safeguard clauses and import quotas that can supplement the tariff system and ease concerns of local farmers. Safeguards refer to the levying of high tariff rates if there is a surge in imports.
Seoul, in addition, plans to point out that the EU directly subsidies the export of farm products which contributes to unfair trade.
Negotiators said there is a need to protect local farmers from pork and certain dairy products where the EU enjoys global competitiveness. At present, Seoul levies tariffs of 22.5-25 per cent on pork and 36 per cent duties on cheese.
South Korea and the EU started negotiations this year to sign a FTA that is expected to boost economic growth in the future. The two plan to hold the fifth round of FTA talks from Monday through Friday.
The EU is the second largest customer of South Korean goods, with two way trade reaching US$78.5 billion in 2006.
