By Kim Hyun-cheol
Staff Reporter
Korea and Canada are set to battle over a key trade dispute involving beef at the World Trade Organization (WTO).
In response to a complaint Canada filed over Korea's ban on its beef in April, the WTO is expected to establish a special panel to settle the issue at the end of this month, the Ministry of Food, Agriculture, Forestry and Fisheries said Wednesday.
The two countries sought a settlement through ongoing negotiations over the past couple of months, without success.
The dispute panel, a trade court consisting of WTO member countries, will be automatically set up upon Canada's second request. Korea rejected the first Canadian request for establishment of the panel.
It will determine if Korea's ban on Canadian beef is consistent with international trade regulations. Korea can appeal if the ruling doesn't fall in its favor but would be obligated to follow the second ruling. A failure to comply would lead to punitive action.
Canada claims the restriction is discriminatory, while Korea argues to the contrary, claiming its regulations regarding prevention of livestock epidemics are consistent with WTO rules.
Canadian Agriculture Minister Gerry Ritz claimed last month his country should be allowed to export its beef to Korea. "The international scientific community recognizes that Canadian beef is safe, and we are confident a WTO dispute panel would rule in our favor," he said in a statement at that time.
The Korean government, on the other hand, is set to maintain its stance on the case but also leaves room for compromise. "Our bottom line is to actively deal with the issue, but we wouldn't mind meeting halfway, if we could," a ministry official said.
Korea might have to consider a revision of its regulations on prevention of livestock epidemics, as Canada's complaints to the WTO took issue with some of its clauses.
Agriculture Minister Chang Tae-pyong said in June that he has requested the National Assembly to revise the law because it is "open for such trade disputes without practical advantages."
Both countries appear to be willing to put an end to the beef dispute because of the ongoing talks for a free trade agreement (FTA) between them. The pact is in its finalizing phase after the 13th round of negotiations in March last year, but now the beef issue is standing in the way.
Except for China, Korea is the only country that doesn't allow Canadian beef in its market. It has imposed a ban on Canadian beef imports since May 2003, when bovine spongiform encephalopathy (BSE), more commonly known as mad cow disease, was found in a Canadian cow.
It prohibited American beef imports after a BSE case was reported in the same year and once again in 2006, but lifted the ban last year. Three more BSE cases have taken place in Canada since 2007.
The WTO categorized Canada as a controlled BSE risk in 2007, which provided Canada with reason to accuse the Korean ban as being unjustified. Before the ban, South Korea was Canada's fourth-largest beef export market, peaking in 2000 by reaching $100 million.