Free trade with South Korea expected to benefit U.S. farmers

Free trade with South Korea expected to benefit U.S. farmers U.S. Agriculture Secretary Mike Johanns said nearly $2 billion worth of U.S. farm exports to South Korea would become duty-free immediately upon the ratification of the recently finalized free trade agreement between the two countries.
   Johanns noted in a statement Thursday that the United States is already the primary agricultural exporter to South Korea at $3.2 billion, despite South Korea’s average agricultural tariff rate of 52 percent.
   Once the free trade agreement is implemented, almost two-thirds of current U.S. farm exports to the Asian country, about $1.91 billion worth in 2006, will become duty-free immediately. Key U.S. exports covered by this change are wheat, corn, soybeans for crushing, hides, cotton, wine, cherries, pistachios and almonds.
   Five-year phase-outs provide more access for U.S. grapefruit and a broad range of processed foods, chocolate and confectionary, sweet corn, sauces and preparations, alfalfa, breads and pastry, orange juice and dried mushrooms. These products represented about $368 million or 12 percent of U.S. agricultural trade to South Korea in 2006.
   Two-year tariff phase-outs will increase South Korean market access for U.S. farmers of avocados, lemons, dried prunes and sunflower seeds, while the immediate duty-free access within tariff-rate quota is provided for skim and whole milk powder, whey for food use, cheese, dextrins and modified starches, barley, popcorn, and soybeans for food use.
   South Korean market access will be expanded for U.S. apples, pears, grapes and oranges. Beef and pork market access will be improved through duty phase-outs, which will ultimately lead to unlimited duty-free access by 2014 for most significant pork products and in 15 years for beef, Johanns said.
   However the U.S. agriculture chief warned that the free-trade benefits will be void unless South Korea opens its market to all U.S. beef products. South Korea, like most countries, closed its doors to U.S. beef in late December 2003 after the U.S. Department of Agriculture announced a case of bovine spongiform encephalopathy, or “mad cow” disease, in a Washington state cow.
   “While the agreement includes many beneficial provisions for U.S. agricultural products, I am confident in saying that it will not be ratified unless Korea opens its market to U.S. beef in accordance with science-based international guidelines,” Johanns said.