Korea has agreed to open its borders to all beef products from the United States for the first time since the North American BSE outbreak in 2003, but the US re-entry into Australia's third largest market will be gradual.
Korea's Ministry of Food, Agriculture, Forestry and Fisheries (MFAFF) and US Trade Representative Susan Schwab yesterday announced the breakthrough ahead of today's Washington summit between South Korean President Lee Myung-bak and US President George W Bush.
The deal will allow US beef from cattle of all ages to be sold in Korea in accordance with the rules set down by the World Animal Health Organisation (OIE).
The US was banned from selling beef in South Korea following the detection of BSE in its herd in late 2003.
It was allowed restricted access earlier this year for boneless beef from cattle under 30 months of age, but its supply has been disrupted by several detections of bone chips in the beef consignments.
The new deal follows eight days of intense negotiations between the two governments.
According to Korea's MFAFF, the first stage of the phase in of US beef will allow beef that contain bones, such as beef ribs, coming from cattle below the age of 30-month-old.
The second stage allows the import of beef from cattle over the age of 30 months, according to the OIE standards, under the condition that US strengthens the guidelines on cattle feed which contain animal parts to prevent cross-contamination.
As for the approved import parts in beef, all parts have been included excluding the specified risk materials (SRM) that the OIE applies to 'BSE risk controlled countries' and the meat removed mechanically from skulls and backbones of cattle.
Only 32 of the 36 US exporting plants have been given approval to export to Korea, with the remaining four still banned due to detection of backbones in earlier consignments.
It is expected that beef imports from the US will be resumed under the new import conditions about mid-May at the earliest.
But importantly the deal also clears one of the major hurdles to the US ratifying its free trade agreement with South Korea, which will see the 40pc tariff on beef imports gradually wiped out, placing US beef at a distinct price advantage over Australian product.