Korea to seek tariff-rate quota on pork, mackerel

A person shops for meat products at a discount store in Seoul on May 18, 2023. [YONHAP]

Korea plans to adopt tariff-rate quotas on imports of pork and mackerel in the near future in line with efforts to tame rising foodstuffs prices amid prolonged inflation, a senior finance official said Friday.

The tariff-rate quota is an arrangement where products are met with favorable duties within a designated volume, but the amount beyond the set volume with higher tariffs.

"As there are price instabilities in some agriculture, livestock and fishery products that are directly connected with perceived inflation, we plan to roll out customized measures and seek to stabilize the prices," First Vice Finance Minister Bang Ki-sun said in a meeting of officials.

To this end, the government said it plans to apply tariff-rate quotas on 45,000 tons of pork and 10,000 tons of mackerel, which could face supply shortages in the second half.

The price of pork rose 4.2 percent on year in April, with that of mackerel jumping 13.5 percent, the ministry data showed.

The government will also make efforts to roll out promotions for beef products, which have been hit by the recent outbreak of foot-and-mouth disease (FMD) here.

FMD affects cloven-hoofed animals, including pigs, sheep and deer. It is one of the most infectious diseases for livestock and can spread rapidly.

"We will also seek to adopt a tariff-rate quota on sugar products, which experienced global price hikes, to ease burdens of the industry," Bang added.

Bang added uncertainties linger for the Korean economy amid the prolonged slump of the chip sector and a delayed spillover from the reopening of the Chinese economy.

"The government will further bolster its efforts to revamp regulations, support exports, and investment to revitalize the economy and stabilize the prices," he said.

Yonhap