U.S. Beef Faces Challenges in Korea Before Reaching Full Potential

Abstract

<p>Negotiations to reach an agreement on import health requirements to reopen the Korean market to U.S. beef took place over the past few years amid enormous political and public resistance in Korea. The expected benefi ts, however, will make the negotiations well worth the effort for both sides. In 2003, Korean imports of U.S. beef reached $749.3 million before imports were banned when a case of bovine spongiform encephalopathy (BSE) was diagnosed in the United States. U.S. beef began fl owing back into Korea in July 2008, and the value of these exports reached $270 million by the end of November. Despite this success, rebuilding exports to reach the full potential of this market will take time. The following is a brief overview of several market conditions that are dampening sales in the early months of renewed trade and longer-term expectations for conditions that would greatly increase demand and market access.</p>