Garlic dispute between Korea and China settled

The garlic dispute between Korea and China has been settled. Trade Minister Hwang Doo-Yun and his Chinese counterpart Shi Guangsheng of the Overseas Economy Division reached a final agreement on garlic trade problems in Beijing on Apr. 21.

The Trade Negotiation Headquarters revealed that Korea would import 10,300 tons of garlic, which was the delayed quota from last year, before the end of August, two months later than the June deadline demanded by the Chinese side. The price of the imported garlic will be $550 per ton, 80 dollars lower than regular FOB (freight on board) price of $630. Also, in order to make it possible for importers to undertake further processing, there will be additional imports of fresh garlic.

The quota for this year and next year was confirmed as a low-tariff item. Also both parties have agreed that Korea should fulfill its import obligation and China should keep its price level.

Kim Sang-Chul sckim007@donga.com