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S Korea ponders easing restrictions on US beef

South Korea said yesterday it will hold talks with the US about further easing its restrictions on imports of US beef in an attempt to resolve a thorny trade dispute.

South Korea will also conduct a risk assessment of US beef in a possible step toward resuming imports of meat attached to bone, which is currently banned, South Korean Minister of Finance and Economy Kwon O-kyu said.

The breakthrough came after a recent ruling by the World Organization for Animal Health that the US was a "controlled risk nation," a category that means countries can export beef irrespective of the animal's age. Washington seized on the announcement as proof that US beef was safe.

The US and South Korea will now hold talks on revising Seoul's import laws in line with the decision, Kwon told reporters.

The process could be wrapped up as early as September if things go smoothly, Kwon said, but he didn't rule out the possibility of delays.

South Korea banned imports of US beef in 2003 after mad cow disease was discovered in the US.

Seoul agreed last year to resume shipments, but only boneless meat from cattle younger than 30 months old, because bones and older animals are believed to be at greater risk from the brain-wasting disease.

The first three shipments late last year failed inspection after bone fragments were found inside. South Korea later revised its rules following US complaints and said that only individual packs of beef that failed inspection would be rejected rather than entire shipments.

The US has since been urging South Korea to further open its market, which was the third-largest US beef destination after Japan and Mexico before the ban. In 2003 alone, it brought in about US$813.2 million, the US Meat Export Federation said.

As part of the South Korean government's review of the US request, it will conduct a review of the safety of US beef, Kwon said. Only after that would the trade rules be revised, he said.

"Our government will sincerely hold negotiations on revising the terms of importing [US beef] by respecting the recommendation of World Organization for Animal Health," Kwon said.

Up for discussion will be all issues related to beef imports, including the question of meat attached to the bone, South Korean Agriculture Minister Park Hong-soo said.

The Ministry of Agriculture and Forestry said an eight-stage risk assessment will include on-site inspections in the US and South Korean approval of US processing plants that export beef.
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