Korea's Measure on Imported Beef: A WTO Law Case Study

WORLD TRADE
ORGANIZATION LAW
KOREA’S MEASURE ON IMPORTED BEEF

WORLD TRADE
ORGANIZATION
The World Trade Organization (WTO) accords with the
international rules and regulations of trade and business relations
between countries. Its primary role is to make sure that the trade
and commerce functions freely as much as possible. Its motto is
to open trade for the benefit for all member countries.1 USA
approached WTO as it faced discrimination of its exported beef
(frozen, chilled and fresh) to Korea which prioritize its domestic
beef more, suppressing the imported meat.
1 'WTO | About The Organization' (Wto.org, 2018) <https://www.wto.org/english/thewto_e/thewto_e.htm> accessed 11 August 2018

FACTS OF THE CASE
• The United States of American on February 1, 1999 held an allegation
against Korea that it discriminates imported beef and disseminate the
notion that domestic beef is superior. US accused that Korea’s trade
measures adversely influencing the import of chilled, frozen and fresh
beef is illegal. It was complained that Korea limited the sale of
imported cow meat to particular shops (double retail system), limited
the display style and restricted its chance to sale more than what it
does in Korea. It was also said that Korea hiked the selling price of the
sourced beef and constrains import authority to a few groups and
Livestock Producers Marketing Organization (LPMO). .2
2 'WTO | Dispute Settlement - The Disputes - DS161' (Wto.org, 2018)<https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds161_e.htm> accessed 11 August
2018

FACTS CONTINUED...
• In addition, it was also stated that Korea supports its domestic cattle industry to the
amount that it exceeds its own prescribed limit of support to the said industry as laid
down in Korea’s schedule. US pointed out that Korea only applies this restrictive policy
to the imported beef industry, which denies national treatment to beef import. .3 The
excessive backing to the local beef industry along with national subsidies affected the
imported beef industry to a great extent and thus contravenes the provisions of GATT
1994, Agreement on Agriculture (AOA) and the Import Licensing Agreement. United
States of America brought charges against Korea for:
o Infringing Articles 2, 3, 11 and 17 of GATT 1994;
o Articles 3, 4, 6 and 7 of Agreement on Agriculture; and
o Articles 1 and 3 of Import Licensing Agreement.
On this account, Australia, New Zealand confirmed their right as a third party to the
case. 43 Ahn, Dukgeun. "Korea in the GATT/WTO dispute settlement system: Legal battle for economic development." Journal of International Economic Law 6.3 (2003): 597-633.
4 Choi, Inbom, and Jeffrey J. Schott. "Korea-US free trade revisited." Free Trade Agreements: US Strategies and Priorities (2004): 173-196.