Many U.S. policymakers have viewed the resumption of all U.S. beef exports to South Korea—the third-largest U.S. beef export market in 2003—as essential, but not necessarily all that is required, before the U.S. Congress considers legislation to implement the Korea-U.S. Free Trade Agreement (KORUS FTA). Beef Imports

After the first U.S. case of bovine spongiform encephalopathy (BSE), or mad cow disease, was discovered in a Canadian-born cow in Washington State in December 2003, South Korea and many other countries banned imports of U.S. beef. Beef Access Became Intertwined with KORUS FTA Talks

U.S. government efforts to regain partial access to the key Korean market took two years to negotiate. They frequently noted that the U.S. measures in place to prevent the introduction of BSE in U.S. cattle herds already meet international scientific standards as spelled out by the OIE. It allows for imports of all cuts of U.S. boneless and bone-in beef and other beef products from the edible parts of cattle, irrespective of age , as long as specified risk materials (SRMs) known to transmit mad cow disease are removed and other conditions are met. Reaction to April 2008 Agreement

While the U.S. beef industry and U.S. policymakers welcomed the April deal, Korean TV coverage of the issue and Internet-spread rumors that questioned the safety of U.S. beef sparked large candlelight vigils in South Korea to protest the beef agreement. To respond to mounting public pressure, the Korean government twice pursued talks with the United States to find ways to defuse public concerns without "renegotiating" the beef agreement. On June 21, 2008, both governments confirmed a "voluntary private sector" arrangement that allows Korean firms to import U.S. beef produced only from cattle less than 30 months old, and announced some changes to the April agreement. Beef in the KORUS FTA

		Market Access Provisions

Under the KORUS FTA, South Korea would eliminate over a 15-year period its 40% tariff on beef muscle meats imported from the United States. Promotional efforts to rebuild consumer confidence in U.S. beef and much lower retail prices for imported beef than for Korean beef contributed to the continued growth in U.S. beef sales throughout the year ( Figure 4 and Figure 5 ). Positions Heading into Final Talks

Following President Obama's announcement on June 26, 2010, of his intent to present implementing legislation for the KORUS FTA to Congress "in the few months" after the November 2010 G-20 meeting in Seoul, the Administration consulted with Congress and stakeholders on how to resolve outstanding matters related to access for U.S. beef in the South Korean market. The U.S. beef sector would view such a scenario as undercutting the aggressive market promotion efforts made since late 2008 to assure Korean consumers of the safety of U.S. beef, which it views as having contributed to the increase in U.S. beef exports. No Change on Beef Issue After Talks

In the negotiations on the supplemental agreement concluded on December 3, 2010, the beef issue reportedly received little discussion as both sides focused on revising the auto provisions. President Obama, in discussing this outcome the next day, indicated that the United States will continue to work toward "ensuring full access for U.S. beef to the Korean market." Meat industry groups again expressed support for this trade agreement that they expect over time will significantly increase their exports to South Korea, and urged Congress to move quickly to ratify it. Memories of the size and intensity of the 2008 anti-beef agreement protests in South Korea appear to have directly influenced the position taken on the beef issue by Korean negotiators. Their position was that this issue "did not fall under" the FTA concluded in 2007. In a letter to Senator Baucus, USTR's Ron Kirk committed to request consultations with South Korea on the "full implementation" of the protocol (e.g., opening Korea's market "to all ages and all cuts of U.S. beef") as soon as this trade agreement takes effect.
The Obama Administration had been pressed to resolve the terms of U.S. beef access to South Korea before the Korea-U.S. Free Trade Agreement (KORUS FTA) goes to Congress for debate. While Korea committed in the FTA to reduce its 40% tariff on imported U.S. beef over a 15-year period, its limits on such imports for human health reasons threatened to undercut this preferential benefit for U.S. exporters. In 2003, South Korea was the third-largest market for U.S. beef exports, prior to the ban its government imposed after the first U.S. cow infected with mad cow disease, or BSE (bovine spongiform encephalopathy), was discovered. U.S. efforts to regain full access became intertwined with the subsequent KORUS negotiations, but did not yield results by the time those talks concluded in April 2007. In reaction, some Members of Congress stated their consideration of, and support for, KORUS depends on South Korea fully opening its market to U.S. beef.
On April 18, 2008, U.S. and South Korean negotiators signed a protocol, or agreement, on sanitary rules that Korea will apply to beef imports from the United States. It allows for imports of all cuts of U.S. boneless and bone-in beef and certain beef products from cattle, irrespective of age, as long as specified risk materials known to transmit mad cow disease are removed and other conditions are met. Though the U.S. beef industry and U.S. policymakers welcomed this deal, Korean TV coverage and Internet-spread rumors that questioned the safety of U.S. beef resulted in escalating protests and calls for the beef agreement to be renegotiated or scrapped. U.S. officials countered that measures already in place to prevent the introduction of BSE in U.S. cattle herds meet international scientific standards. To address rising public pressure, the Korean government twice pursued talks with the United States to find ways to defuse these concerns without "renegotiating" the beef protocol. This culminated in the June 21, 2008, confirmation by both governments of a "voluntary private sector" arrangement that allows Korean firms to import U.S. beef produced from cattle only under 30 months of age. Both governments view this as a transitional step until Korean consumer confidence in the safety of U.S. beef improves.
Since the resumption of U.S. beef exports in July 2008, U.S. exporters have worked to recapture this key overseas market. Beef exports to South Korea in 2010 totaled $518 million, about two-thirds of the record 2003 level. In 2011's first five months, exports (at $331 million) were twice the level recorded in the same period the year before. Promotional efforts to rebuild consumer confidence in U.S. beef, aggressive marketing efforts by large store chains, and much lower retail prices for imported beef than for Korean beef account for the continued growth in U.S. beef sales.
Following President Obama's mid-2010 decision to present the KORUS FTA to Congress in 2011, Administration officials worked to resolve the beef and auto issues with South Korea. By the time bilateral talks concluded on December 3, 2010, the beef issue reportedly had received little discussion as both sides focused on revising the auto provisions. Korea's position was shaped by the memory of the size and intensity of the 2008 anti-beef agreement protests. President Obama, in discussing this outcome, stated that the United States will continue to work toward "ensuring full access for U.S. beef to the Korean market." To address lingering congressional concerns, the Administration in early May 2011 committed to request consultations with South Korea on the "full implementation" of the protocol as soon as KORUS takes effect, and to provide additional funds for U.S. beef promotion activities in the Korean market. Beef and meat industry groups have welcomed the steps made since to submit KORUS to Congress, have expressed their support, and have urged Congress to move quickly to ratify it.