Agricultural News
South Korea FTA Deal Announced by Obama Administration Offers No Improvements Over Bush Deal for Beef- But Cattle Group Says Let's Get Clock Ticking on Tariff Reduction
Mon, 06 Dec 2010 5:52:22 CST
While the Obama Administration failed to get any improvement in current beef protocols with the South Koreans, most meat industry groups say we'll work on that later- let's ratify the deal and get the clock ticking on the reduction of one of the biggest tariffs in the world on US Beef- Forty Percent.
Senator Max Baucus of Montana, who the beef industry credits for helping push the South Koreans to accept US Beef from animals under 30 months of age- boneless or bone in, was critical of the Obama Administration in regards to the "new and improved" free trade agreement between the United States and South Korea that does not widen access to U.S. beef. The democratic Senator says “I am deeply disappointed that today’s deal fails to address Korea’s significant barriers to American beef exports, which President Obama identified this June as one of the critical outstanding issues that must be resolved before moving this free trade agreement forward."
According to a fact sheet the administration issued over the weekend, tariff eliminations on South Korea’s existing 40 percent tariff over time will boost beef exports, saving an estimated $1,300 per ton of beef imported to Korea -- savings that would total $90 million annually for U.S. beef producers at current sales levels.
NCBA Chief Economist Gregg Doud said U.S. beef sales should exceed $500 million this year, making South Korea the fourth largest beef buyer. He estimated $325 million in annual tariff reductions once the tariffs are completely phased out.
We do the math on those tariffs with Gregg Doud on today's Beef Buzz.
Click here for a backgrounder done earlier by the National Cattlemen's Beef Association on the FTA with South Korea and its importance to the cattle industry.
The Beef Buzz is a regular feature heard on radio stations around the state on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the listen bar below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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