By Bae Keun-min
Staff Reporter


Rice exporting countries have asked South Korea to more than double rice imports to 9 percent of domestic consumption and allow imported rice to be sold to consumers in return for another suspension of a full-scale market opening. But local economists advised the government to consider a full-scale opening of the rice market through tariffication once Korea is required to import more than 7.5 percent of domestic consumption under the minimum market access program.

In a public hearing on the additional opening of the rice market Wednesday, the Ministry of Agriculture and Forestry (MAF) said nine countries participating in talks to open the South Korean rice market have demanded that Korea gradually increase imports of foreign rice up to 455,000 tons under the tariff rate quota (TRQ), or minimum market access, by 2014. The amount is equivalent to 8.9 percent of the average consumption between 1988 and 1990.

In addition, exporters have asked Korea to allow up to 75 percent of imported rice to be sold to consumers. Currently, all imported rice is available only to food processors.

They also offered a 5-year grace period first on the full-scale market opening after which more negotiations would take place. But Korea wants a 10-year grace period, the MAF said.

South Korea has been in talks with countries, namely the United States, China, Australia, Thailand, India, Pakistan, Egypt, Argentina and Canada since May on the rice market opening.

Korea was given a 10-year grace period during the Uruguay Round talks in 1994, while gradually increasing rice imports from 1 percent to 4 percent of domestic consumption during the period, up to 205,000 tons in 2004.

In the hearing, Suh Jin-kyo, a senior fellow researcher at the Korea Rural Development Institute, said tariffication may be advantageous if rice exporters demand imports more than 7.5 percent of domestic consumption.

However, Lee Jae-gil, deputy minister for the Doha Development Agenda Negotiations at the Ministry of Foreign Affairs and Trade, who has also led the Korean delegation for the rice talks, said, ``We will not make a decision on tariffication solely based on the TRQ. We would also consider other factors, including the Doha Development Agenda (DDA) negotiations likely to be concluded by 2007 and time necessary to restructure the primary industry and public opinions.’’

The Korean government is required to conclude the talks within this year in accordance with the termination of the Uruguay Round Agreement this year. But the government faces strong opposition from farmers on the additional opening.

Moreover, rice exporters have been seeking to squeeze other trade-off benefits in return for permitting Korea to suspend the rice market-opening on a full-scale basis, including softening the quarantine for imported farm produce and securing a fixed quota for their exports.

Korea is scheduled to have another round of talks with China tomorrow and with the U.S. next week, according to the MAF. The government plans to conclude negotiations in early December and announce South Korea’s final position to the World Trade Organization.

kenbae@koreatimes.co.kr