U.S. Checking Korean Trade Rules on Wine

U.S. Trade Representative Clayton K. Yeutter said Monday that he has opened investigations into allegations of unfair South Korean restrictions on wine imports and possible Korean patent abuses.

If trade violations on wine are found, the United States could retaliate by imposing tariffs on Korean exports to the United States under Section 301 of U.S. trade law.

Yeutter said he opened the wine investigation at the request of the American wine industry, which charged that Korea’s 100% tariff drives up the price of U.S. wine to make it uncompetitive with Korean table wines.

The American wine makers also complained about Korea’s total import ban on wine coolers, champagne, brandy and ciders as well as its restrictions on marketing and packaging.

Yeutter said in a statement: “Our industry estimates that Korea’s alleged unfair trade practices have caused U.S. firms to lose $45 million in the last five years with a potential loss of more than $61 million over the next five years if these government practices are not changed.”

He said U.S. and Korean officials had met over the past three years to discuss opening the Korean market to American wines, but could not resolve the issue.