Breathe Easy, Garlic Row to End?An official with the Republic of Korea's Embassy in China said China and South Korea could sign an agreement this month on the two sides' trade dispute over garlic, mobile phones and polythene."It's hard to predict, but we will try to reach a final agreement quickly," she said. South Korean trade and foreign affairs officials were earlier reported to have told journalists the two sides were expected to sign an agreement next month. Officials from the Chinese Ministry of Foreign Trade and Economic Co-operation (MOFTEC) confirmed reports that the two sides had reached a draft agreement in Beijing last weekend. But officials from both sides refused to comment on its content. "Changes are still possible and so nothing should be said before the final agreement," said MOFTEC officials. The South Korean media reported that their country had agreed on a customs tax of lower than 50 per cent for 32,000 tons of garlic imports from China. Among this, 20,000 tons of frozen and fresh garlic would be charged a 30 per cent customs tax previously levied in South Korea. In return, China is believed to have agreed to lift its ban on imports of mobile phones and polythene from South Korea. South Korea announced an increase in customs taxes for Chinese garlic from 30 per cent to 315 per cent on June 1 to halt increasing garlic imports from China. China quickly hit back, banning mobile phone and polythene imports from South Korea from June 7. A business official with the South Korean Embassy was reported to have said surging Chinese garlic imports had dragged down wholesale garlic prices on the South Korean market by about 40 per cent last year compared with the year before. But South Korean media commentators said the price slump was largely caused by increased production at home. |
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