Rice import tariff rate fixed at 513%... Government says "Low possibility of rice import"

[Asia Economy Reporter Moon Chaeseok] South Korea's rice import tariff rate has been finalized at 513%.

The Ministry of Agriculture, Food and Rural Affairs announced that a partial revision of the Republic of Korea's schedule of concessions to finalize the rice tariff rate was published in the official gazette on the 22nd.

The schedule of concessions is an official commitment submitted to the World Trade Organization (WTO) by member countries, specifying import tariffs and other measures on all goods.

According to the revision, a tariff rate of 513% will be applied to rice-related items, but a low tariff quota (TRQ) of 408,700 tons (tariff rate 5%) will be maintained.

Of the 408,700 tons TRQ, 388,700 tons will be allocated by country based on import performance from 2015 to 2017 to five countries: China, the United States, Vietnam, Thailand, and Australia.

The allocation is as follows: China 157,195 tons, the United States 132,304 tons, Vietnam 55,112 tons, Thailand 28,494 tons, and Australia 15,595 tons.

South Korea joined the WTO in 1995 and applied tariffs to all agricultural products except rice.

Rice was exceptionally exempted from tariff application twice, from 1995 to 2004 and from 2005 to 2014. Instead, imports were allowed at a low tariff rate of 5% for a certain quantity.

When the tariff exemption ended in September 2014, South Korea submitted a revised schedule of concessions to the WTO setting the rice tariff rate at 513%, but five countries? the United States, China, Vietnam, Thailand, and Australia?raised objections.

After five years of verification consultations with these five countries, it was decided to maintain the original plan.

The WTO issued a certificate confirming the completion of South Korea's rice tariff verification process on January 24 last year. On the 12th, it circulated a document announcing the enforcement of Korea's tariff rate.

The question remains whether rice for table consumption will need to be imported. Although a relatively high restriction of 513% has been set, it does not completely block the possibility as the tariff exemption did.

The Ministry of Agriculture, Food and Rural Affairs stated, "513% is a tariff level that can stably protect the domestic rice market," and added, "The possibility of importing additional commercial-use rice beyond the TRQ volume is very low."