Canada-Problems with South Korea.

CANADA-COMPLAINTS OVER SOUTH KOREA.The Canadian government said Wednesday it is urging the World Trade Organization to initiate consultations on South Korea’s refusal to lift a ban on Canadian beef imports.

"We are disappointed to have to launch this action, as we had hoped to resolve our differences through negotiation," International Trade Minister Stockwell Day said in a news release. "Canada has a robust trade relationship with South Korea, so it is unfortunate that we have not been able to settle this issue and reopen South Korean markets to Canadian beef."

WTO consultations are a formal opportunity for trading partners to resolve disputes through discussions. If such efforts fail, Canada may ask that the matter be taken up by a WTO dispute settlement panel.

"We are now taking the necessary steps to defend Canadian beef producers," Day said. "South Korea represents a key market for them, and we are going the extra mile to get the door open."

South Korea banned imports of Canadian beef in May 2003 following the discovery of bovine spongiform encephalopathy in a Canadian cow. In May 2007, the World Organization for Animal Health categorized Canada as a controlled-risk country for BSE, but Seoul has yet to similarly recognize the effectiveness of Canada’s surveillance, mitigation and eradication measures.