Media release

Australian Minister for Trade, Mark Vaile

July 27, 1999

WTO Korea Beef Panel Established

Trade Minister Mark Vaile today welcomed the agreement of the World Trade Organisation on 26 July to establish a dispute settlement panel to examine Australia's complaint against Korea's regime for imported beef.

"Korea has imposed a range of restrictions on the import and distribution of Australian beef which impede market access for Australian exporters," Mr Vaile said.

"This is a major hindrance in our third most important export market for beef with trade over the past five years valued at approximately $140 million per year."

Mr Vaile said the barriers included limitations on companies entitled to import, the separation of imported and domestic beef distribution channels, and the imposition of a markup on the sale of imported beef.

"Although Australia has raised these issues on many occasions with Korea, including at WTO consultations in late May, our concerns have not been addressed. As such we have been left with little choice other than to request the establishment of a panel and I am pleased that the WTO has now agreed to do this."

"The Government is working in close consultation with the Australian beef industry and I welcome its continued strong support for the Government's decision to proceed with a WTO panel."

"Just like our decision to take the US to the WTO on lamb, this Korea beef action demonstrates that the Federal Government is determined to use international trade rules to the maximum extent possible to support Australian exporters. This includes any discriminatory trade practices against our fairly traded and unsubsidised agricultural exports."

Mr Vaile said that Australia's complaint would be considered jointly with a similar complaint from the US - Australia is the second largest beef supplier to the Korean market after the US. A panel to examine the US complaint was established two months ago.

The panel is likely to begin its work in September with a report finalised in the first part of next year.