Government Compensates Farmers for Losses due to FTA

South Korea - Hanwoo beef farmers will receive compensation for losses caused by the Korea-US Free Trade Agreement, marking the first time financial remunerations have been paid since introduced in the Korea-Chile agreement of 2004.

12 June 2013

1 minute read

Asia

Payments will be direct from the Ministry of Food, Agriculture and Rural Affairs to Hanwoo farmers, following application. Support will be available for farmers after they stop farming.

In order to receive payments, various criteria must be met. Export quantities, imports, rulings on price and cost are all used to define which producers are eligible.

Total imports must exceed the standard total imports (standard total imports is the average imports of 3 years out of the immediate previous 5 years (2007~2011), excluding the highest and lowest year).
Total imports of beef were 15.6 percent higher than the standard total year (207,000 MT vs. 240,000MT).
Imports from the country where an FTA has been established must exceed the standard import amount (the standard total imports is the average imports of 3 years out of the immediate previous 5 years (2007~2011), excluding the highest and lowest year, multiplied by a trigger index for import damage).