MOFTEC Spokesman on ROK's Limitation on Garlic Imports

Spokesman with the Chinese Ministry of Foreign Trade and Economic Cooperation (MOFTEC) Hu Chusheng today commented on the decision of the Republic of Korea (ROK) to adopt limitation measures on garlic imports.

Hu said that the Finance and Economy Ministry of ROK issued its No. 141 order on May 31, which declares that starting from June 1, ROK adopts limitation measures on garlic imports and a tariff rate as high as 315 percent will be levied on imported garlic.

Hu pointed out that the ROK's assertion that "the increase of garlic imports has caused a reduction in garlic prices and damaged the garlic industry in the ROK" is not justified.

He said that the domestic output of garlic in the ROK increased by 90,000 tons in 1999, while its import only increased by 1,200 tons, according to the ROK's customs statistics.

Any damage to the ROK's garlic industry is caused entirely by the sharp increase of its garlic production at home, instead of the minor increase of its garlic imports.

China is the major garlic exporter to the ROK, and the ROK's limitation on garlic import is actually targeted at China, Hu pointed out.

The ROK unilaterally adopted limitation measures without consulting China and this action does not accord with the regulations of the World Trade Organization (WTO), said Hu.

Hu said that the ROK report to the WTO on the damage of its garlic industry interprets the matter out of context, and this is extremely inappropriate.

China has 9.5 billion U.S. dollars of trade deficit to the ROK, Hu said, stressing that the ROK does not keep its promise of expanding import from China and reducing trade barriers, but instead limits its import of Chinese goods.

The ROK's action will only result in a deterioration of the existing trade imbalance between the two countries, Hu noted.

The spokesman said that China has always maintained that problems in trade and economic relations should be solved in the spirit of friendly consultation.

On the ROK's limitation on garlic imports, China has proposed to discuss the issue and find a solution acceptable to both sides.But the talks broke off because of ROK's insistence on its own position, Hu said.

The ROK's unilateral action of limiting garlic imports has seriously hampered bilateral trade and economic ties between the two countries, Hu pointed out, adding that the ROK should fully bear all responsibilities. Under such circumstances, the MOFTEC has publicized the

statement as follows:

Firstly, the ROK's limitation measures on Chines garlic do not reflect the reality of China's garlic exports to the ROK and violate relevant conditions of adopting limitation measures prescribed in the Agreement on Safeguards of the WTO. The ROK action is obviously a discriminatory trade protection measure which the Chinese government can not accept.

Secondly, according to the Article 7 of the Foreign Trade Law of the People's Republic of China, in light of the ROK decision against China's garlic export and the damage to China's trade interests, the Chinese government has decided to temporarily suspend from June 7 this year the import of mobile telephones (including vehicular mobile sets) and polyethylene from the ROK and preserves the rights to take further action.

Thirdly, the Chinese government hopes that the ROK, taking Sino-ROK trade and economic relations into consideration, will seriously consider China's position and reverse its discriminatory actions, and seek a solution acceptable to both sides through bilateral consultations.



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