Korean school meals exempt from WTO gov't procurement deal

South Korean school meals have been exempted from the World Trade Organization's (WTO) landmark public sector procurement liberalization pact, the country's diplomatic mission here said Thursday.

Seoul's Permanent Mission to the UN Secretariat and International Organizations said other member countries have agreed to allow Seoul to maintain its current policy guidelines on school meals and other large-scale meal programs.

Policymakers and negotiators maintained that regulating meal programs is important for public health and to alleviate concerns that substandard ingredients could be used in food for school children and at company cafeterias.

The exemption is expected to permit local school boards and others organizations that provide meals to buy locally raised produce without worrying about violating international rules that clamp down on purchase discrimination.

The WTO's Government Procurement Agreement (GPA) was reached earlier in the day after more than 10 years of tough negotiations.

The pact is expected to open up government procurement contracts to foreign competition, which could be a boon for such areas as construction and telecommunication services. It can also help reduce government outlays by making companies compete harder for lucrative projects. In the past, most government procurement contracts were awarded to local companies.

The GPA is forecast to open up a global market estimated to be worth between US$80 billion and $1 trillion each year. (Yonhap News)