Trade minister signals openness to concessions as U.S. presses on beef, rice

As the United States steps up pressure on Korea to open its agricultural market — particularly to U.S. beef and rice — Seoul's top trade official signaled that some concessions may be on the table for strategic gain.

Trade Minister Yeo Han-koo speaks during a press briefing at the government complex in Sejong on July 14. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]

As the United States steps up pressure on Korea to open its agricultural market — particularly to U.S. beef and rice — Seoul's top trade official signaled that some concessions may be on the table for strategic gain.

“Opening the agricultural market has never been painless — not with the United States nor with any other country — but through such experiences, Korea’s industrial competitiveness has strengthened,” said Trade Minister Yeo Han-koo during a press briefing at the government complex in Sejong on Monday. “I believe we need to make strategic judgments in the agricultural sector as well.”

“There are clearly areas that should be considered more flexibly in terms of institutional improvements, competitiveness and consumer welfare,” Yeo said. “Sensitive sectors should be protected, but other areas must be considered within the larger framework of negotiations.”

Yeo’s remarks, made in his capacity as Korea’s lead negotiator in tariff talks with Washington, suggest that Korea could accept some of the U.S. demands for agricultural market access in exchange for reductions in tariffs on Korean industrial exports.

The shift in tone marks a notable departure from his earlier stance. On July 4, Yeo had told lawmakers that Korea would “firmly defend” key areas like beef and rice from U.S. demands. But after five days of negotiations in Washington from July 5 to 10, his language appeared to soften.

Washington is pushing hard on agricultural access in ongoing tariff talks with various countries. Japan, for example, is under pressure to open its rice market.

Trade Minister Yeo Han-koo, right, shakes hands with U.S. Commerce Secretary Howard Lutnick after a meeting on tariffs in Washington on July 7. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]

Talks that had seemed close to a conclusion with the European Union and India have stalled over agricultural issues. India, in particular, is strongly opposed to U.S. demands to open its market to genetically modified crops, and negotiations remain at an impasse.

Bloomberg reported Monday that tariffs on cars and agriculture have emerged as last-minute sticking points in negotiations.

“Agricultural exports are a key area of strength for the United States, which wants to reduce its trade deficit,” said one trade expert. “This pressure is typically a major obstacle in negotiations, but Vietnam reached an early deal by allowing duty-free access to U.S. agricultural goods.”

The United States is applying similar pressure on Korea. While trade officials have not disclosed specific details, Washington's requests are known: allowing imports of beef from cattle over 30 months old, expanding market access for rice and apples, lifting import restrictions on genetically modified potatoes and easing quarantine rules on fruits such as blueberries and cherries.

“Most of the issues raised in the U.S. Trade Representative’s National Trade Estimate Report released in March were brought up during the talks,” a Korean trade official said.

Trade Minister Yeo Han-koo, right, speaks with U.S. Commerce Secretary Howard Lutnick during a meeting on tariffs in Washington on July 7. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]

Internally, officials at the Ministry of Agriculture, Food and Rural Affairs are reportedly open to lifting restrictions on older beef and genetically modified potatoes. The genetically modified potatoes are already in the final stage of approval, pending a food safety review. But even some analysts warn that resuming imports of older beef could reignite public fears tied to the 2008 mad cow protests, which roiled the Lee Myung-bak administration. Last year, Korea was the largest overseas market for U.S. beef.

During his recent trip to the United States, Korean trade authorities reportedly discussed apple imports as well. The United States first requested a pest risk analysis for apple exports to Korea in 1993. Of the eight steps in the process, two have been completed and the third is pending. The United States has expressed strong dissatisfaction with the delay.

However, the Agriculture Ministry maintains, “The spread of pests like fruit flies and fire blight has not been sufficiently ruled out, so it is difficult to proceed with the next step.”

Trade Minister Yeo Han-koo speaks to reporters upon arriving in Incheon International Airport following a trip to Washington on July 10. [NEWS1]

The rice issue remains a nonstarter for the Korean government. Seoul agreed in 2015 to open its rice market under World Trade Organization (WTO) rules in exchange for imposing a high tariff of 513 percent, while committing to a tariff rate quota of 408,700 tons per year. Of that, 32.4 percent currently comes from the United States. Increasing that amount would require reducing imports from other WTO member states.

Farmer groups strongly objected to Yeo’s remarks.

“Succumbing to irrational and reckless U.S. trade pressure once again means sacrificing Korean agriculture,” said the Korean Peasants League in a statement Monday. “The people will respond with a second wave of FTA resistance and another candlelight movement like the one sparked by the mad cow disease scandal.”

“It appears that trade authorities are floating terms like ‘system modernization’ and ‘consumer welfare’ to gauge public sentiment,” said Suh Jin-kyo of the GS&J Institute. “If the United States is indeed demanding agricultural market access or quarantine adjustments, they must first inform farmers and begin public discussions. For farmers, this is a matter of survival.”

“Domestic negotiations are just as important as international ones,” said Park Sung-hoon, an emeritus professor of international trade at Korea University’s Graduate School of International Studies. “If agricultural concessions can lead to significant tariff reductions, measures should be prepared to compensate farmers — such as utilizing the Trade Adjustment Assistance Act — or to share the benefits gained by industries that profit from tariff relief with the farming community.”

Asked whether Korea could face retaliatory tariffs after Aug. 1, when the negotiation deadline passes, Yeo said, “We must prepare for the worst-case scenario,” but added, “We won’t sacrifice practical gains just because of time constraints.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY KIM WON, IM SOUNG-BIN [lim.jeongwon@joongang.co.kr]