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U.S., China oppose Korea's 513% rice tariff
By Lee Hyo-sik
The United States, China and other rice-exporting countries are opposing Korea’s move to levy a 513 percent tariff on imported rice, saying the rate is too high.
According to the Ministry of Agriculture, Food and Rural Affairs, Tuesday, the U.S., China, Australia, Thailand and Vietnam have raised objections with the World Trade Organization (WTO) to the nation’s tariff rate on rice imports.
“The five rice-exporting countries filed a complaint with the WTO against our 513 percent tariff,” said Kim Kyung-mee, director of the ministry’s agriculture trade division. “They claimed the way we calculated the rate was incorrect. But what they really want to say is the 513 percent rate is too high.”
The higher the tariff is, the pricier imported rice becomes on the local market.
Last September, Korea decided to open its rice market in 2015 by imposing a tariff on imported rice. For the past 20 years, Asia’s fourth-largest economy imported a certain amount of rice every year under the minimum market access (MMA) program, in exchange for a waiver.
In 2014, the nation was obliged to import 408,700 tons of rice, about 10 percent of its annual rice consumption of 4.1 million tons. To delay the opening of the rice market, Korea would have to increase the MMA quota this year.
The government notified the WTO that it would set a 513 percent tariff on rice imports. If there were no objections, the WTO would issue a certificate allowing Korea to levy the tariff.
But Korea must now negotiate with the five opposing rice exporters to get their consent.
“We will begin negotiations with the five countries to persuade them to accept the 513 percent rate,” Kim said. “If they withdraw their objections, the WTO will issue a certificate.”
“It is not a must for us to have other countries agree to the 513 percent rate. We can impose the tariff without their consent, but it is customary to have an agreement with all WTO members.”
Negotiations may take years ― the process took 57 months for Taiwan. But the director said the tariff took effect on Jan. 1 and that the government had no intention of making concessions.
Korea’s rate is much lower than Japan’s 1,066 percent and Taiwan’s 563 percent when they liberalized their rice markets.