U.S. To Take Korean Trade
Dispute Over Beef To WTO

SEOUL, South Korea — As Korean officials rejected a load of Australian beef for alleged chemical contamination last week, the United States said it was taking its own beef dispute with South Korea to the World Trade Organization.

Deputy Trade Representative Richard W. Fisher disclosed the U.S. decision when he met with South Korean Agriculture and Forestry Minister Kim Sung-hoon.

The U.S. decision requires Washington and Seoul to start at least two months of negotiations before formally asking the WTO to set up a panel to mediate.

The two countries failed to resolve the issue in a 19th round of talks in Washington last week.

The United States wants South Korea to ease its restrictions on foreign access to its beef market and increase its import quota for U.S. beef.

In 1998, South Korea imported 145,000 tons of U.S. beef, 22,000 tons less than its promised import quota under a long-term agreement.

The United States wants the unused portion of the 1998 quota, or 22,000 tons, to be carried over and added to this year's quota of 206,000 tons.

South Korea rejects the U.S. demand, arguing that the reduced 1998 imports were due to a drop in overall beef consumption in the midst of an economic recession.

The United States also wants South Korea to allow all domestic meat shops to sell foreign beef. Currently, imported meat is sold only at specially designated shops.

Washington also wants Seoul to lower its 42.3 percent tariff on imported beef.

The U.S. move came as South Korea rejected 20 tons of Australian beef after harmful levels of agricultural chemicals were detected by quarantine officials.

Australian officials quickly played down suggestions the incident could spark a repeat of the contamination crisis that almost wrecked Australia's beef export industry.

South Korean quarantine official Park Jong-Myong said importers were ordered to send back 20 tons of beef after the chemical endosulfan was detected.

However, officials in Seoul said they had conducted the tests after the chemicals were detected by Australia, which immediately informed Seoul the beef could have been contaminated.

Japan's detection of chemicals in Australian beef five years ago led to the suspension of beef exports and a complete overhaul of methods used to raise cattle and screen meat sent overseas.

Australian Cattle Council executive director Justin Toohey said the latest incident posed no threat to the beef export trade.

``The Koreans are not concerned. They are not threatening our trade, it's not an issue,'' he said.

A spokesman for Australian Agriculture Minister Mark Vaile said the contaminated beef would be tracked back to its source to determine the cause of the problem.

South Korea imported 120,000 metric tons of beef from Australia last year.

Officials there said it was the first time harmful chemicals had been detected in imported beef. The rest of the shipment had been allowed through.

Toohey said the most likely cause of the contamination was a spray drift from a nearby cotton farm onto the cattle.

He said endosulfan was used to control Heliothis caterpillars, a major pest on cotton farms, and the timing was consistent with the spraying period.