Korea meat ruling welcomed

NZ beef sales could benefit from a World Trade Organisation ruling.

WELLINGTON - The Meat Producers Board has welcomed reports in Korean newspapers of an interim World Trade Organisation ruling that Korea's imported beef sales system and support for the domestic industry violates international trade obligations.

Meat New Zealand chief executive Neil Taylor said Australia and the United States brought the proceeding against Korea at the WTO a year ago.

New Zealand made a third-party submission in support of their case.

Korea operates a complex regime that heavily regulates the importation, distribution and sale of beef.

In particular, the regulations discriminate against imported beef by dictating the type of retail outlets through which it can be sold.

While quantitative limitations on imported beef are to be removed early next year, the restrictions on internal distribution would prevent a truly liberalised market.

"New Zealand beef exports have excellent prospects in Korea under the market liberalisation that will occur in 2001," said Mr Taylor.

"But they need to be able to compete within the market on an equal footing with domestic products."

Last year, New Zealand exported 8505 tonnes of beef to Korea, worth $29 million. Volumes had increased from 5000 tonnes the year before when the market was heavily affected by the Asian crisis.

The WTO disputes settlement body was expected to make a final ruling next month.-NZPA