Korea mulls lowering barriers to US agricultural imports

Trade Minister Yeo Han-koo speaks during a press conference at Government Complex Sejong, Monday. Courtesy of Ministry of Trade, Industry and Energy

Korea's lead negotiator in tariff talks with the United States has signaled that Seoul may accept Washington's request to reduce barriers to agricultural imports amid the Donald Trump administration's threat to impose a 25 percent “reciprocal” tariff on Korean goods on Aug. 1.

The move is seen as the Lee Jae Myung administration signaling Korea's willingness to address some of the so-called nontariff barriers that Trump claims are blocking U.S. exports to Korea.

Despite mounting calls from local farmers to maintain strict quarantine measures on U.S. agricultural products, Trade Minister Yeo Han-koo said Monday that “strategic decisions” are needed on the farming industry for a broader trade agreement.

“Trade negotiations on agricultural products are always painful, whether with the U.S. or other countries. But we have consequently improved our industrial competitiveness,” Yeo told reporters during a briefing on his U.S. trip from July 5 to 10.

“The agricultural sector is what we need to make strategic decisions on. Of course there are sensitive aspects that we should protect. While protecting them, there are aspects to consider in the entire frame of negotiations.”

Even before Trump took office in January, Washington had asked Korea to lift its ban on U.S. beef from cattle over 30 months old and to ease quarantine restrictions on apples and pears. While the Korea-U.S. Free Trade Agreement eliminated tariffs on most U.S. fruit, apples have not yet met Korea’s strict quarantine standards.

However, after Trump recently urged Japan to address rising rice prices by importing American rice, the trade minister reportedly asked the Ministry of Agriculture, Food and Rural Affairs to relax regulations on U.S. apples, as Korea faced a shortage last year.

A nationwide association of apple farmers holds a press conference in front of the presidential office in Seoul, Wednesday, to urge the government to stop considering importing apples from the United States. Newsis

In response, orchard owners and politicians in North Gyeongsang Province and Jangsu, North Jeolla Province, Korea's top apple-producing regions, staged protests urging the government not to consider importing U.S. apples.

“Rather than sacrificing farmers for a trade deal, the government should recognize the public value of agriculture and protect farmers’ rights,” the Jangsu County Council said in a statement, Monday.

A federation of farmers will also hold a press conference in front of the presidential office on Wednesday, criticizing trade authorities for treating U.S. agricultural imports as a bargaining chip in tariff negotiations.

However, the trade minister acknowledged that some U.S. complaints about Korea’s nontariff barriers are “reasonable” and said lowering such barriers in certain sectors is necessary to improve the country’s competitiveness.

While demanding eased regulations on U.S. agricultural products, Washington has criticized Korea’s refusal to provide Google and Apple with detailed map data. The Korean government’s plan to regulate dominant online platforms also remains a point of contention between the two countries.

“There are sectors we need to protect, but we should also be flexible to improve our systems, boost competitiveness and benefit consumers,” Yeo said.

The trade minister declined to specify which sectors were discussed in bilateral talks, but pledged to consult with relevant ministries, stakeholders and the National Assembly to reach a national consensus on nontariff barriers.

Emphasizing the need for Korea to “make choices and decisions,” Yeo said the government will closely monitor the outcomes of other countries’ negotiations with the U.S.

He expressed doubt about reaching a detailed agreement with the U.S. within the next 20 days before Aug. 1, expecting further negotiations after a broad agreement in principle is reached.

Aiming to eliminate or reduce U.S. sectoral tariffs on steel and cars, Yeo plans to continue persuading Washington by proposing manufacturing cooperation in shipbuilding, semiconductors and batteries.

He is also scheduled to make at least one more visit to the U.S. before Aug. 1.