WORLD TRADE
ORGANIZATIONWT/DS169/1
G/L/307
G/AG/GEN/37
G/LIC/D/29
19 April 1999
(99-1552)
Original:  English
KOREA - MEASURES AFFECTING IMPORTS OF
FRESH, CHILLED AND FROZEN BEEF
Request for Consultations by Australia
The following communication, dated 13 April 1999, from the Permanent Mission of Australia
to the Permanent Mission of the Republic of Kor ea and to the Chairman of the Dispute Settlement
Body, is circulated in accordance with Article 4.4 of the DSU.
_______________
My authorities have instructed me to reques t consultations with the Republic of Korea
pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of
Disputes (DSU), Article XXII of the Genera l Agreement on Tariffs and Trade 1994 (GATT 1994),
Article 19 of the Agreement on Agriculture and Article 6 of the Agreement on Import Licensing
Procedures, with respect to the quantitative restrictions imposed by Korea on imports of fresh, chilled
and frozen beef and a regulatory scheme that discriminates against imported beef by, inter alia,
confining sales of imported beef to specialised stores, limiting the manner of its display and otherwise
constraining the opportunities for sale of imported beef.  The requested consultations also seek to
address the imposition of a markup on sales of imported beef, the limitation of import authority to so-
called "supergroups" and the Livestock Producers Marketing Organisation (LPMO), and the provision
of domestic support to the cattle industry in Korea in amounts which cause Korea to exceed Korea's
aggregate measure of support as reflected in Korea's WTO schedule.
The measures which restrict beef imports and the distribution and sale of imported beef
within Korea are the laws and regulations govern ing livestock trade in Korea, both domestic and
imported, and include the regulations covering sales of imported beef, the operational guidelines for
the Simultaneous Buy/Sell (SBS) system, and the guidelines concerning the registration and operation
of Specialised Imported Beef Stores.  Additional m easures are described in Korea's Livestock Act and
the laws, decrees and regulations relating to imposition of the markup and the subsidisation of the
domestic livestock industry, including the Livest ock Industry Development Fund, the Distribution and
Price Stabilisation of Agricultural and Fishery Pr oducts Act, the Livestock Product Processing and
Treatment Act, the Livestock Industry Act, the Customs Act, the Foreign Trade Act and the Livestock
Farming Act.
Through its restrictions on the importation, sale, display and distribution of imported beef and
the imposition of a markup on imported beef, Korea appears to be imposing restrictions on market
access that are inconsistent with its WTO obligations.  The restrictions on marketing and distribution
pertain  only  to imported  beef  and,  thus,  also  appear  to  deny  national  treatment to beef  imports.
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Finally, the provision by Korea of domestic subsidies to its cattle industry appears to have caused
Korea to exceed the aggregate measure of support set forth in section IV of Korea's WTO schedules in
contravention of Korea's obligations under the Agreement on Agriculture.
All of these measures appear to be inconsistent with the obligations of Korea under the
General Agreement on Tariffs and Trade 1994, the Agreement on Agriculture and the Agreement on
Import Licensing Procedures.  The identified measures appear to be inconsistent with the following
specific provisions of those agreements:
1. General Agreement on Tariffs and Trade 1994, Articles II, III, XI;  and XVI2. Agreement on Agriculture, Articles 3, 4, 6 and 7;  and
3. Agreement on Import Licensing Procedures, Articles 1, 3.
We look forward to receiving your reply to the present request and to fixing a mutually
convenient date for consultations.
__________