Although the trade authorities expressed their intention to use the resolution of non-tariff barriers for agricultural and livestock products as a negotiating card in the U.S.-Korea tariff negotiations, it has become controversial as it is reported that they did not consult with the agricultural administration beforehand.
Concerns have arisen that if trade negotiations are pushed ahead without considering the public's sensitivity to food safety and the backlash from farmers whose livelihoods depend on the agricultural and livestock industry, incidents like the 'mad cow disease crisis' during the U.S.-Korea Free Trade Agreement (FTA) negotiation process in 2008 could recur.
On the 17th, comprehensive coverage from the Ministry of Trade, Industry and Energy indicates that trade authorities are considering the opening of agricultural markets as a major negotiating card in future trade negotiations with the U.S.
Yeo Han-koo, Deputy Minister of Trade, noted during a briefing on the 14th that "strategic judgment should be made regarding agricultural products," adding that "there are points to consider within the overall framework of the negotiations." He further stated, "There has never been a time when agricultural products did not suffer in all negotiations," and emphasized that "industrial competitiveness has been strengthened in the process, and there are flexible aspects to consider," publicly mentioning the possibility of expanding market opening for U.S. agricultural and livestock products like beef, fruits, and rice.
However, the trade authorities have not had specific consultations with the Ministry of Agriculture, Food and Rural Affairs, which is in charge of agricultural and livestock products. A Director General-level official from the Ministry of Agriculture stated regarding Yeo's briefing that "the agricultural and livestock market opening card was mentioned unilaterally without any specific consultations," describing it as "internal strife."
The Ministry of Agriculture also clarified through an official statement that reports claiming that they are consulting with relevant departments regarding the impact of market opening on individual items are not true.
Another official from the Ministry of Agriculture stated, "No consultations have been made regarding the opening of individual items," and noted that "in the case of fruits, the import decision must be made in accordance with the sanitary and phytosanitary (SPS) procedures, but we have received no requests for cooperation or support from the trade authorities regarding this series of processes."
While the scale of damages from the opening of the agricultural and livestock market needs to be assessed, as well as methods to prevent damage to the agricultural industry and compensation measures for farmers, it seems that only the effectiveness of this as a card for tariff negotiations is being evaluated without following these procedures.
The backlash from farmers is intensifying. The Korea Agricultural Management Association held an urgent press conference in front of the presidential office in Yongsan, Seoul, on the 16th, opposing the 'U.S.-Korea reciprocal tariff negotiations on the elimination of tariffs and non-tariff barriers for agricultural and livestock products.'
They argued, "It has been reported that the trade authorities are reviewing the easing of tariffs and non-tariff barriers for agricultural and livestock products as a negotiating card for reciprocal tariff adjustment, which is heightening anxiety in rural areas," adding that "if tariffs and non-tariff barriers are further alleviated, it could lead to a near-complete opening of the market, risking the collapse of domestic agricultural production foundations."
Meanwhile, some experts point out that it remains unclear how much the U.S. will lower tariff rates for Korea as a card for expanding imports of U.S. beef and apples. According to last year's data, Korea's trade surplus with the U.S. exceeds $55.6 billion. The value of U.S. beef imports into Korea is around $2.2 billion, and the proportion of beef slaughtered over 30 months of age in the U.S. constitutes about 20% of the overall total. Even if beef over 30 months old is imported, its impact on the trade balance is likely to be minimal.
Apples also have a limited impact on overall Korea-U.S. trade. According to the Ministry of Agriculture, the domestic apple market is estimated to be worth 800 billion won. Assuming that U.S. apples account for 10% of this, the export increase effect for the U.S. would only amount to 80 billion won (approximately $60 million).
Seo Jin-kyo, head of GS&J Institute, stated, "It seems that the trade authorities view the expansion of agricultural imports as a key negotiation card, but I believe that it is not a major area of actual interest in the U.S.," adding that "the effect on the balance of trade is not significant, and considering that President Donald Trump's real interest lies in reviving U.S. manufacturing in industries like automotive and steel, it is expected to be difficult to significantly lower reciprocal tariff rates for Korea as an agricultural market opening card."
Seo added, "The benefits to the U.S. of resolving non-tariff barriers for agricultural and livestock products are limited, but the impact on the domestic agricultural industry is not small," cautioning that "it is quite risky to play the agricultural and livestock product card in tariff negotiations. Various options should be reviewed in addition to agricultural products when approaching tariff negotiations."