Trade Disputes Expected in Farm Sector
Since Korea introduced the positive list system (PLS) for agricultual chemical residues in foods in December 2016, more than 107 tons of imported nuts and tropical fruit products has been sent back or discarded. Although the volume of disqualified food imports is rather small yet, trade disputes are likely to occur once the system is fully introduced next year.
According to the Seoul Economic Daily’s May 7 report, Korea rejected 107 tons of Filipino bananas, Mexican avocados and other food imports worth US$223,887 from December 2016 to the end of 2017 under the PLS. This year, Vietnamese mangoes and American walnuts were rejected under the PLS.
Under the PLS, the content of any agricultural pesticide remaining in foods should not exceed 0.01 ppm if the pesticide is not registered with the South Korean government. In other words, such products using an unregistered pesticide cannot pass through the customs office. The PLS became effective in the 1960s in the United States, 2006 in Japan and and 2008 in the EU.
South Korean farmers have registered as many pesticides as possible. On the contrary, little data is currently available when it comes to pesticides used for imported agricultural products. Although major foreign exporters of agricultural products have registered pesticides with South Korea, smaller firms have not done so.
Many point out that the PLS could result in trade disputes. “When Japan introduced the PLS in the past, a large portion of South Korean agricultural exports was sent back or discarded,” said a high-ranking government official. “The same can happen with regard to American and Chinese products, and then the U.S. and Chinese governments may file complaints.”
He added that the PLS could affect consumer prices as imported agricultural products are relatively cheaper than locally produced ones.