990309 USDA Continues to Push For Meat in S. Korea Credit

Washington - The U.S. Agriculture Department continues to push to include meat in a $1 billion export credit package for South Korea, a key USDA official said.

“We believe very strongly that meat needs to be part of the ultimate package because it reflects what we think is the demand there,” USDA General Sales Manager Chris Goldthwait said.

But he acknowledged that South Korean officials have a different view. Asked if meat was the main sticking point, Goldthwait said: “You hit it on the nail head.”

In December, U.S. Agriculture Secretary Dan Glickman pledged to include pork as part of the GSM-102 credit package for South Korea. At the time, pork producers were facing the lowest cash hog prices in 50 years.

U.S. pork producers have also complained that the South Korea government unfairly helps its domestic pork industry compete in key markets such as Japan.

But because South Korea's government has provided its pledge that loans taken out under the GSM-102 will be repaid, it also has some say in how the credits are used.

The two sides have been meeting recently in Seoul to work out details on the package.

Last year, both beef and pork were included as part of a $1.5 billion package for South Korea.

To the great disappointment of U.S. pork producers, South Korea's beef purchases far outstripped its pork buys.

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