South Korea Reinstates US Beef Trade

South Korea has announced today it has given US beef the all clear, paving the way for beef imports from the US to resume.

South Korea had until now enforced a ban on beef products from the US after the discovery of BSE at a US plant earlier this month.

However, after assurances from high ranking US officials, South Korea has made the decision to resume the import of beef and beef products from the US with immediate effect, instantly increasing the level of trade enjoyed by US producers.

Whilst the news is a positive for the US economy, the ban is still in force in respect of the single source of the discovery in the US, where quarantine inspectors uncovered the condition in spinal tissues.

South Korea is currently the third biggest customer for US beef exports in the world. As such, the ban hit US producers hard, freezing a large proportion of their international trade prospects for much of the month.

Analysts expect the loss of trade, which amounts to $850 million annually, shouldn’t be too heavily received by market investors, while they remain hopeful that the ban will reflect only a minor dent in trade.

US export beef has only just recovered from a ban lasting since 2003 over similar issues, which have done much to undermine confidence in the quality of produce.

However, top US farming officials have said that the finding earlier in the month was a mere isolated incident, and that exports are now safe for human consumption once more.

Trade is expected to resume with immediate effect, bringing US beef back to supermarket shelves in Seoul. However, authorities are likely to remain vigilant as to the standard of US produce over the coming months, as a precaution against any further discoveries of the condition.

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