S. Korea decides to allow rice exports for first time

Posted on : 2007-06-06 20:34 KST Modified on : 2019-10-19 20:29 KST

South Korea has decided to allow the export of locally grown rice for the first time in almost 60 years to help farmers look for overseas markets as domestic demand declines, the agricultural ministry said Wednesday.

South Korea has permitted a local agricultural cooperative to export 53 tons of rice to the United States, citing its high quality after reviewing requests by a few exporters, the Ministry of Agriculture and Forestry said.

In May, another agricultural cooperative submitted a request to export rice to Switzerland, but it did not receive government approval to do so, the ministry said.

The move comes after South Korea sought to allow the rice exports in mid-May as long as they do not hurt the nation's status as a rice-importing country.

South Korea has refrained from exporting rice out of fear that it could pave the way for countries like the U.S. to put more pressure on Seoul to open its domestic rice market.

Seoul was put under pressure to open its market during the Uruguay Round of trade liberalization talks and during free trade agreement (FTA) talks with the U.S.

In a 2004 agreement with the World Trade Organization (WTO), South Korea agreed to increase its rice imports to 8 percent of consumption by 2014 from the current 4 percent level.

Seoul excluded rice from its April 2 FTA deal with the U.S. that calls for knocking down tariffs and non-tariff barriers in the trade of goods and services.

"We have decided to authorize the rice exports because of changes in circumstances such as the decline in rice consumption," the ministry said.

South Korea has also been struggling with a steady decline in rice consumption along with sufficient reserves. In 2006, the nation produced 6.05 million tons of rice while consuming 4.98 million tons.

South Korea has not exported rice since 1945 because of a negative attitude toward rice exports. Koreans were forced to ship rice to Japan during the Japanese colonial period, 1910 to 1945.

South Koreans also suffered from a shortage of rice in the 1960s and 70s until it became fully self-sufficient in the 1980s.

SEOUL, June 6 (Yonhap News)