South Korea trade deal ’close’
Globe and Mail, Canada
South Korea trade deal ’close’
By Geoffrey York
3 May 2007
SEOUL — South Korea will lift its ban on Canadian beef within the next three weeks, allowing the two countries to complete a free-trade agreement in the near future, Foreign Affairs Minister Peter MacKay predicted yesterday.
Mr. MacKay offered the upbeat assessment in a visit to South Korea, saying the lifting of the beef ban and the completion of the free-trade deal are both "precariously close."
Canada and South Korea have been negotiating the trade agreement since July, 2005. They have wrangled over the beef ban for even longer. South Korea banned Canadian beef in May, 2003, after mad-cow disease, or bovine spongiform encephalopathy (BSE), was discovered in Alberta.
The two issues are politically connected, Mr. MacKay acknowledged. "There’s no question it would be politically unpalatable for us to have an ongoing beef ban for Canadian beef and expect that we’re going to be able to finally ink a free-trade agreement," he told reporters in Seoul yesterday.
"I believe this is an irritant - but one that is going to go away very soon. I think we’re approaching a final resolution, and I believe South Koreans will see that Canadian beef is as safe as any in the world. We expect this is going to be resolved in the very near future, and my discussions [with the South Korean foreign minister] confirmed that [South] Korea is very close to lifting any further restrictions on Canadian beef."
By May 25 at the latest, there should be a final ruling on Canadian beef by the World Organization for Animal Health, he said. "That should be the turning point that we’ve been waiting for. That should do away with any concern whatsoever that still remains."
As for the free-trade agreement, the two countries are "extremely close to reaching the point where we can sign," Mr. MacKay said.
Earlier reports suggested a free-trade deal is opposed by powerful Canadian lobby groups, including beef exporters, shipbuilders and auto makers, but Mr. MacKay disagreed. "I don’t believe there are any significant stumbling blocks," he said. "I think we’re down to some of the fine points in negotiations, the details."
Last week, Canada and South Korea finished their 10th round of negotiations on the trade deal. They might be able to finalize the deal during their 11th round, the minister said.
During his visit, his deputy minister met senior South Korean officials to discuss the trade negotiations. The talks also gained a big boost from the free-trade agreement reached between South Korea and the United States last month.
"We are led to believe that we are precariously close to putting a final agreement in place that will allow us to enjoy the same type of free trade that the United States will soon enjoy [with South Korea]," Mr. MacKay told a news conference.
"A free-trade agreement with Canada, which would be [South] Korea’s second with a G8 country after the United States, offers a very valuable win-win opportunity. An ambitious and comprehensive free-trade agreement is clearly the next step in advancing our strong bilateral relationship."
Two former South Korean ambassadors to Canada also confirmed yesterday that the free-trade talks are in their final stages. One of the former ambassadors, Kim Hang Kyung, said the negotiations are proceeding smoothly and have only a few items left to resolve.
South Korea is the seventh-largest market for Canadian exports, and the eighth-largest source of imports to Canada.
