China was the third largest trade partner of Korea and Korea the fourth of China. The total volume of the trade between the two countries has exceeded 300 US$ billion in 2000. Korea enjoyed a trade surplus of US$ 11.9 billion in 2000.
　　In 1999, there was a 30 percent drop in garlic prices in Korea and the Korean farmer suffering from such price drop blamed the cheap foreign imports for their loss. The Korean Finance and Economy Ministry issued its No. 141 order on May 31, 2000 which declares that starting from June 1, 2000 Korea adopts limitation measures on garlic imports and a tariff rate as high as 315 percent will be levied on imported garlic.
　　China is the major garlic exporter to Korea. It thought that Korea’s limitation on garlic import was actually targeted at China. It dismissed the assertion that “the increase of garlic imports has caused a reduction in garlic prices and damaged the garlic industry in Korea” as unjustified. It argued that “[a]ny damage to Korea’s garlic industry is caused entirely by the sharp increase of its garlic production at home, instead of the minor increase of its garlic imports.”　
　　It further asserted that the unilateral measures without consulting China not only seriously obstructed China’s garlic export and affected the normal development of bilateral trade, from which China had sustained huge amount of deficits for a long time, but also did not accord with the regulations of the WTO.
　　China announced suspension of the import of Korean mobile telephones (including vehicular mobile sets) and polyethylene on 7 June 2000.
　　However, on 1 August 2000, China announced the lifting of its two-month ban on import of mobile phones (including vehicular mobile sets) and polyethylene from the Korea after the two countries reached an agreement on garlic trade.　The decision was made as two parties reached an agreement after negotiation.
　　Under the agreement, Korea would import 32,000 tons of Chinese garlic at low tariffs in 2000, and the amount will grow by 5.25 percent annually within a term of three years.　For the purpose of implementing the agreement on the Chinese part, the MOFTEC promulgated the Provisional Rules on Management of Export of Garlic to South Korea to regulate and rectify the garlic exports to Korea.

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