Agence France Presse

Seoul, December 31:

South Korea unveiled a trade deal under which it will double rice imports in return for enjoying another 10-year grace period before fully opening up its agricultural markets.

Huh Sang-Man, agriculture minister, said the deal, which wraps up one year of negotiations with nine rice exporters, was reported yesterday to the World Trade Organisation (WTO) for review and verification. South Korea agreed to increase its rice import quotas from the current four per cent of total domestic consumption to 7.96 per cent over the next decade until 2014, Huh said.

In return, South Korea can renew a 1994 agreement, which had allowed Seoul to delay opening its rice market until 2004, for another 10 years. The talks were with China, the United States, Thailand and six other producing countries. “The extension of the 10-year grace period will allow us time to strengthen our rice growing industry and prepare for market opening,” Huh said in a televised news conference.

In terms of amounts, South Korea’s rice imports should increase from the current 205,000 tonnes to 408,700 tonnes by 2014 under the new deal. The accord also requires the government to allow up to 30 per cent of imported rice to be sold directly to consumers by 2010. Previously, imported rice had been kept out of the retail market in South Korea.

The deal, if verified by the WTO, needs approval from South Korea’s parliament to take effect.

The government aims to sell imported rice to consumers next year. South Korean Farmers strongly oppose the opening of agricultural markets while government officials believe the country cannot keep them closed to foreign competition for much longer. The goverment has offered a $113.9 billion package over 10 years to support some 3.6 million farmers, the country’s most heavily protected sector.

South Korean rice is more than four times more expensive compared to imports. The average price for an 80-kg sack of rice stands at $152.