[Congressional Record Volume 141, Number 124 (Friday, July 28, 1995)]
[Extensions of Remarks]
[Page E1547]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


           A GOOD DEAL FOR UNITED STATES MEAT SALES TO KOREA

                                 ______


                           HON. E de la GARZA

                                of texas

                    in the house of representatives

                         Friday, July 28, 1995
  Mr. de la GARZA. Mr. Speaker, it was a pleasure to welcome President 
Kim Yong-Sam of Korea to this Chamber, particularly as we observe the 
50th anniversary of the end to the war in Korea.
  I am also very pleased that Korea, our good friend and ally, has just 
agreed to significant trade liberalization that will benefit both of 
our countries.
  On July 20, our two governments announced new import policies that 
will allow for the added sale of millions of dollars of United States 
meats and other food products to Korea. This improved trading 
relationship is appropriate to the strong friendship between our two 
countries.
  I wish to commend the negotiators of this new agreement--the U.S. 
Trade Representative, the U.S. Department of Agriculture, and President 
Kim's team. The documents were signed in a formal ceremony in 
Ambassador Kantor's office last Thursday. Two long-standing trade 
issues regarding Korea's shelf-life polices are now resolved.
  This is an important breakthrough. Through long and sometimes 
frustrating trade negotiations between our governments, Korea has grown 
to a $2.5 billion market for United States agriculture.
  Korea is now the United States' fourth largest agricultural market, 
after Japan, Canada, and Mexico. Feedgrains, cotton, and cattle hides 
are our major exports, and U.S. red meats are growing in importance. 
American value-added, consumer-oriented food exports to Korea increased 
by 36 percent in the first half of 1995. Total United States 
agricultural sales to Korea are headed for a new record.
  Korea is now our No. 3 market for American red meat with purchases of 
$254 million last year. The U.S. meat industry estimates that this 
agreement will add $240 million in sales in the first year, and add $1 
billion annually by the year 1999. The agreement will also benefit many 
other types of food products and allow growth to accelerate.
  This agreement resolves both the section 301 investigation and the 
standards case brought to the World Trade Organization against Korea's 
shelf-life policy. Korea will now accept manufacturers' ``Use by . . . 
date'' for labels and will allow an adequate shelf-life to enable the 
United States to ship and market products profitably. The agreement 
includes chilled beef and pork, as well as all frozen foods including 
processed meat and poultry products.
  Our trade dispute resolution mechanisms are working. This was the 
first standards case brought by the United States to the new World 
Trade Organization [WTO] dispute settlement panel. Korea also has 
agreed to work to resolve a second WTO case against its unscientific 
residue testing and import inspection procedures affecting grapefruit 
and other food products.
  Beef and pork are currently sold in Korea under quotas negotiated in 
previous United States-Korea beef agreements and scheduled for phase-
out in the Uruguay Round Agreement. The last year of quotas will be the 
year 2000. The United States is very competitive in the Korean market 
with Australia and New Zealand for beef and with Europe for pork. 
United States market share in Korea in now 58 percent for beef and 50 
percent for pork.
  USDA export promotion funding through the Foreign Market Development 
Program--cooperator program--and the Market Promotion Program [MPP] 
have been critical to developing the Korean market for United States 
meat. The supermarket taste tests, restaurant promotions, and industry 
trade teams sponsored through partnership with USDA serve to introduce 
American beef, pork, and poultry to Korean consumers and wholesalers. 
These programs will be critical in the months ahead to helping U.S. 
companies to capitalize on the new trade opportunities and compete with 
foreign competition.


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