Tuesday, June 3, 2008

South Korean beef circus continues II

Today the government of South Korea, as it was predicted here and elsewhere, acquiesed to street demonstrators and vegetarian animal rights radicals, to postpone bringing in any U.S. beef and to not allow it from animals older than 30 months.

Both these conditions are opposite what was agreed to in the trade accord recently negotiated with the U.S. Despite talking bravely at the start about toughing it out and upholding the deal, the South Korean Premier caved in the face of radical pressure.

This is particularly hypocritical on both the Premier and the Demonstrator's parts, as South Korea leads Asia and rivals European nations in the number of confirmed BSE cases in its domestic cow herd. The U.S. has two cases, both in cattle imported from Canada. South Korea is now over 30, in a much smaller cow herd.

Rather than foisting its risky domestic beef off on the Korean consuming public, the government needs to import safe, wholesome U.S. beef to protect its citizens. This is the tact the Premier needs to take, rather than wringing his hands and trying to placate everybody. He obviously hasn't learned the truth of the old saw "He who walks down the middle of the road gets shot at from both sides."

This, in microcosm, is the story of world trade. It is governed by politics, not economics. It is a matter of "what have you done for me lately," and which pressure the politicians making the decision can best stand up to.

Now it is a matter of President Bush and Congress holding Korea's feet to the fire, refusing to approve any of the trade deal without the key beef portion that Korea is trying to renege on. Korea needs the U.S. market and low duties for its manufactured goods, a lot worse than the U.S. needs to sell ag products in Korea.

President Bush, something of a rancher and cattleman himself, from the great cattle state of Texas, has repeatedly stood up for the beef industry in trade negotiations. It is likely he will again, on the Korean pact, but Congress, in an election year, is a whole different matter.

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