Agricultural News
US Korean Free Trade Deal Announced by Obama Administration
Sat, 04 Dec 2010 15:15:17 CST
The Obama Administration announced Friday afternoon that a deal has been struck with South Korea to modify the free trade agreement first negotiated by the Bush Administration. Here is a statement from President Obama announcing the Agreement:
"I am very pleased that the United States and South Korea have reached agreement on a landmark trade deal that is expected to increase annual exports of American goods by up to $11 billion and support at least 70,000 American jobs. Last month in Seoul I directed our negotiators to achieve the best deal for American workers and companies, and this agreement meets that test.
"American manufacturers of cars and trucks will gain more access to the Korean market and a level playing field to take advantage of that access. We are strengthening our ability to create and defend manufacturing jobs in the United States; increasing exports of agricultural products for American farmers and ranchers; and opening Korea's services market to American companies. High standards for the protection of worker's rights and the environment make this a model for future trade agreements, which must be both free and fair.
"Today's agreement is an integral part of my Administration's efforts to open foreign markets to U.S. goods and services, create jobs for American workers, farmers and businesses, and achieve our goal of doubling of U.S. exports over five years. It deepens the strong alliance between the United States and the Republic of Korea and reinforces American leadership in the Asia Pacific. I look forward to working with Congress and leaders in both parties to get this done and to ensure that America competes aggressively for the jobs and markets of the 21st century."
Click here for a Fact Sheet on the FTA released by the White House on Friday afternoon.
The US Beef industry is especially happy with word of this breakthrough. The key element for the US beef industry will be the elimination of current tariffs over a fifteen year period. The Chief Economist of the National Cattlemen's Beef Association, Gregg Doud, released this statement after word came of the deal:
"It is encouraging to see the United States and Korea one step closer to a working free trade agreement that will create jobs and increase the profitability of America's cattlemen and women. For too long, we have missed opportunities to obtain a competitive advantage in Korea by sitting on the sidelines while our competitors complete deals.
"First and foremost, we thank Senator Max Baucus for his unwavering efforts to reopen the Korean marketplace to U.S. beef in 2008. Because of his commitment, the market potential for U.S. beef is nothing short of phenomenal. Since the market reopened, sales have grown rapidly and should exceed $500 million this year, making Korea the fourth largest buyer of U.S. beef. Without his commitment, I am confident we would not be nearing the passage of this free trade agreement. While we support continuing efforts to obtain full market access, it is imperative we act quickly to prevent our competitors from having the upper hand.
"We must remember that this is not over. Congress must ratify this agreement and should do so quickly. If Australia beats us to the signing table, they would have a 2.67 percent tariff advantage over U.S. beef for the next 15 years. When this agreement is finally signed, sealed and delivered, it would phase out Korea's 40 percent tariff on beef imports. We are talking about $325 million in tariff reductions annually once fully implemented. We thank the President and his administration for their efforts and we look forward to working with them to urge Congress to ratify this free trade agreement. This is the beef industry's stimulus package."
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The US Meat Export Federation also released a statement of support:
"I would like to take this opportunity to personally congratulate the U.S. negotiators for their dedication and commitment to pursuing these discussions to a successful conclusion," said USMEF President and CEO Philip Seng.
Seng also acknowledged the leadership of Montana Sen. Max Baucus in achieving the resumption of beef exports to Korea in 2008. Noting the strong recovery that has occurred in beef exports since 2008, Seng said that Senator Baucus's continued commitment to expanding access to the Korean market has been critical to the success the beef industry has experienced there over the past two years.
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The following statement is offered by American Meat Institute President and CEO J. Patrick Boyle
"The American Meat Institute (AMI) supports the free trade agreement between the United States and South Korea announced today and urges the Congress to ratify it at its earliest opportunity. South Korea is already a major market for U.S. meat. Pork exports in 2010 are expected to exceed $150 million, making South Korea the fifth largest export market for pork. The tariff reduction schedule for pork will further strengthen the U.S. position in this important and growing market. Beef exports continue to grow, from 233 metric tons valued at $612,000 in 2006 to 56,000 metric tons valued at $56 million in 2009. Through the first nine months of the year, exports to South Korea are up 136 percent in volume and 181 percent in value. AMI estimates that once the FTA is fully implemented, beef and pork exports to South Korea could increase by $2 billion and resulting in more than 26,700 new American jobs. The growth in U.S. beef exports in recent years is due to the successful negotiations of the U.S. government and widespread Congressional support from leaders, such as Sen. Baucus (D-MT), for reopening the South Korean market to beef, which was closed from 2003 to 2007. AMI looks forward to working with our negotiators and Congressional allies to continue discussions with Korea to provide full access for all U.S. beef products."
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