ROK Agriculture Minister Presses for High-level

UNCLAS SEOUL 001813 SENSITIVE SIPDIS STATE PASS USTR FOR CUTLER, YOO, and CLARKSON USDA FOR JBREWER, SHALE, PSHEIKH, CALEXANDER, LBLUM E.O. 12958: N/A TAGS: ETRD EAGR PREL KS SUBJECT: ROK Agriculture Minister Presses for High-level Consultations and for Progress on Chicken Ginseng Soup ¶1. (U) This cable is sensitive but unclassified and not/not intended for Internet distribution. ¶2. (SBU) Summary: The Ambassador met Agriculture Minister Chang Tae-pyong on November 4. Chang expressed his desire for a high-level consultation process on agricultural issues. Chang pressed for progress on the approval process for chicken ginseng soup exports to the United States. The Ambassador raised organics and biotechnology issues. Chang requested U.S. flexibility on diversion of U.S. table rice for processing. The meeting also touched on beef, the Doha Round and the KORUS FTA with the Minister indicating resistance to re-opening negotiations. End Summary. The Case for High-level Consultations -------------- ¶3. (SBU) The Ambassador hosted a November 4 breakfast for Agriculture Minister Chang Tae-pyong, who requested the meeting. Deputy Minister of Agriculture for Trade Yoo Byung-rin attended the meeting as did Embassy Ag and Econ M/Cs. Chang expressed strong interest in high-level consultations and increased bilateral cooperation on agricultural issues, in part to counter what he described as the continuing potential for anti-American sentiment among the Korean population. Chang argued that anti-American sentiment has been growing over the last ten years and reached a crescendo during the candlelight protests of 2008, but had not disappeared. He said that this anti-Americanism continued to be a risk to both U.S.-ROK trade and the broader bilateral relationship. He attributed the disappointing U.S. beef sales to this sentiment and argued that high-level consultations would be helpful in ensuring better mutual understanding. Minister Chang said this was why he dispatched Deputy Minister Yoo to raise the idea with Under Secretary Miller in Washington in September. The Minister concluded by stressing that he was interested in holding high-level consultations with the Department of Agriculture not simply to address trade issues, but to demonstrate to the Korean public the strength of the bilateral relationship. ¶4. (SBU) The Ambassador said she appreciated the concern and effort and assured the Minister that any ROKG proposal for increased consultations would be seriously reviewed in Washington. The Ambassador said she believed over time Koreans would come to recognize that U.S. beef is safe. (Note: According to U.S. Meat Export Federation surveys, one-third of the Korean public will buy U.S. beef, one-third will never buy it, and one-third still undecided. U.S. beef sales and exports have increased recently due to the weakening of the dollar in relation to the Korean and Australian currencies. End Note). Chicken Ginseng Soup and Foot and Mouth Disease -------------- -- ¶5. (SBU) Minister Chang pressed for progress in getting Food Safety and Inspection Service (FSIS) approval to export chicken ginseng soup (samgyetang) to the United States and for recognition of Korea's status as free of Foot and Mouth Disease (FMD). He stated that the market access request for samgyetang had been outstanding for fifteen years and FMD recognition for seven years. Chang said he had been harshly grilled earlier in the week in the National Assembly by representatives who complained that the United States demands immediate market access for its agricultural products, but fails to provide access for Korean agricultural products. Chang said the argument was starting to resonate in the National Assembly and with the public. Chang urged the USG to do everything possible to expedite the approval process. ¶6. (SBU) The Ambassador noted that Korea needed to respond to the October 28 letter from USDA's Food Safety and Inspection Service (FSIS) asking for information regarding Korea's verification program for salmonella in poultry and in regard to Korean government oversight of corrective actions. Ag M/C added that once FSIS received that information they could move forward with their regulatory review process. The Ambassador reaffirmed the U.S. commitment to move forward with the review process with a view to realizing the export of this product to the U.S. (Note: The U.S. commitment to conduct on-site audits and any subsequent work and rulemaking with a view to realizing the export of this product to the U.S. was made in the Agreed Minutes of the Korea/United States Consultation on Beef. Thus the two issues are linked in the eyes of the Korean government. End Note). ¶7. (SBU) The Ambassador noted that a letter regarding the status of FMD recognition had recently been provided to the Korean Embassy in Washington. The Minister indicated that he was aware of the letter. Ag M/C elaborated that things appear to be moving in the right direction on FMD-status. ROKG Wants to Divert U.S. Table Rice to Processing -------------- -------------- ¶8. (SBU) Minister Chang described the current oversupply of rice in the Korean market and the politically difficult phenomenon of declining prices. (Note: The harvest estimate is now in -- a bumper crop with record yields. End Note). He then observed that sales of U.S. table rice at public auction were slow. He opined that further discounting of U.S. table rice at auction could create a stigma that it was inferior to domestically produced rice. The Ambassador responded that the issue was discussed at the bilateral rice consultations in September and that the U.S. was waiting for language from the Korean side confirming the desire for a one-time diversion of U.S. table rice. Deputy Minister Yoo stated that China had agreed to have its table rice diverted for processing and that it would be difficult for Korea to agree to specific language that this would be a one-time diversion given the current market situation. Other Issues: Biotech, Organics and KORUS -------------- ¶9. (SBU) The Ambassador asked Minister Chang about whether Korea had plans to commercialize any of the biotech crops, such as rice, Chinese cabbage, peppers, tomatoes and tobacco that had been developed by Korean scientists and by MIFAFF's Rural Development Administration. The Minister stated that they did not and that after U.S. beef, biotech was the next issue that could galvanize the opposition and that was why Korea had proposed to implement a mandatory labeling regime for biotech foods. The Ambassador noted the need to use a science-based regulatory process and to avoid disrupting markets. The Minister seemed to take the point but gave a limited response -- that the NGOs were pressuring the Ministry. The Ambassador also raised organics and, while acknowledging the delay in implementation the new regulatory scheme, asked that the Minister ensure that trade is not disrupted. ¶10. (SBU) On the KORUS FTA, Chang said he believed market liberalization was good for Korean agriculture and he hoped the agreement would be ratified soon. He added, however, that talk of amendments for the auto trade was destabilizing for the Korean agricultural community and that he would pay closer attention to this issue and oppose any re-opening of negotiations. Comment -------------- ¶11. (SBU) We take seriously the Minister's representations on the continuing potential for anti-American sentiment. While polls show that such sentiment is currently at a low ebb, experience demonstrates that it can be fanned quickly by events. In this regard, while continuing to press Korea for progress on our agricultural trade interests, we would also benefit by facilitating progress on some issues that Korea is pursuing, namely samgyetang. We are skeptical about the utility of institutionalizing high-level consultations on agriculture, but in the event of a request, believe that we should welcome a high-level visit to Washington to discuss both trade and broader agricultural cooperation. STEPHENS