Morgan Stanley
Hong Kong | Saturday, 11 October 2008
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US, South Korean officials end beef talks

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Posted 14 June 2008 @ 12:00 pm HKT

WASHINGTON - The top U.S. and South Korean trade envoys broke off talks Sunday without resolving a crisis over the resumption of American beef shipments that has shaken South Korea's pro-U.S. government.

A South Korean man carries a national flag and a Korean peninsula reunification flag as he marches with fellow protesters in downtown Seoul on Sunday, June 15, 2008 to demonstrate against U.S. beef imports and its handling by the South Korean governm...

South Korean Trade Minister Kim Jong-hoon, who flew into Washington on Friday for discussions, was returning home, U.S. Trade Representative spokeswoman Gretchen Hamel said.

Kim and Susan Schwab, the U.S. trade envoy, held "frank and candid discussions" Friday and Saturday, Hamel said, but, "in order to find a mutually acceptable solution, both sides need more time to look into technical issues."

She said officials from the countries will stay in contact.

The talks, which focused on the importation of U.S. beef from cattle below 30 months of age, came as thousands of people protested in Seoul, demanding that a beef import deal settled in April be renegotiated and urging South Korean President Lee Myung-bak to resign.

Lee has vowed not to allow the import of beef from cattle older than 30 months. Scientists think infection levels of mad cow disease increase with age.

The South Korean Foreign Ministry said in a statement that the "two sides agreed to cooperate to produce a solution that can satisfy each other." Seoul and Washington needed more time to work out effective measures for beef imports, the ministry said.

The Bush administration has said that it will not renegotiate an accord that was supposed to have settled a major irritant in ties between the allies. But Washington has said it supports beef packaging labels that would show the ages of slaughtered cows.

Lee said he has received a positive reply from the U.S. on measures under which the American beef industry would voluntarily not ship meat from cattle older than 30 months. Lee called the voluntary restraint the most rational measure to resolve the beef dispute.

American beef processors have said they are willing to label beef shipments bound for South Korea.

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