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U.S. Moving Forward with Korea FTA

To move forward with the U.S.- Korea Free Trade Agreement the President has asked U.S. Trade Representative Ron Kirk to initiate new discussions with his Korean counterpart. The goal of those discussions is to resolve outstanding issues in a way that levels the playing field for U.S. workers and producers with the objective of completing that process by President Obama's visit to South Korea for the next G-20 meeting in November.

Ambassador Kirk says during the past year USTR has conducted extensive discussions with a wide range of stakeholders and with congressional leaders to gain a detailed understanding of their concerns about this agreement. He looks forward to finalizing ways to address these concerns and deliver to Americans the jobs and economic opportunity this agreement can bring.

If implemented, the Korea-U.S. Free Trade Agreement would cut Korea's tariff from 40% to zero within 15 years, bringing the U.S. beef industry $15 million in new benefits the first year. National Cattlemen's Beef Association President Steve Foglesong says the trade deal could potentially be one of the most significant bilateral agreements in U.S. history.

Foglesong says NCBA is encouraged that the Administration is making it clear that it's time to move forward on the trade deal. Other countries, like Australia, are moving forward on trade agreements with Korea and Foglesong says Australia's ratification of a similar bilateral trade agreement with Korea a year before the U.S. would give Australians an advantage over U.S. beef for 15 years. He says that would devastate the U.S. beef industry. With the U.S. economy continuing to suffer and other countries outpacing the U.S. in the race to ratify new trade agreements Foglesong says it's time for Congress to take action. He says every day that passes without progress puts American jobs and market share at risk.

Nearly 12 million American jobs depend on exports and Foglesong says it's critical to expand the nation's opportunities to sell beef in the international marketplace in order to keep American family farms in business. NCBA is also urging Congress to make progress on FTAs with Colombia and Panama because American exporters pay $2 million in unnecessary tariffs for each day Congress delays in approving the Colombia FTA.

Also praising the move is the American Soybean Association. ASA President Rob Joslin says the agreement offers immediate duty-free access to U.S. soybeans for crushing and to U.S. soybean meal. Also tariffs on refined soybean oil would be eliminated over the next five years, and tariffs on crude soybean oil would be eliminated over 10 years.

"U.S. soybean growers will also benefit because this agreement is expected to generate millions of dollars in additional exports of meat and poultry," Joslin said. "Domestic livestock consumed more than 24 million metric tons of soybean meal in 2009, which was 70% of all the soybean meal processed in this country."

Senate Agriculture Committee Chairman Blanche Lincoln, D-Ark., says she is pleased the President made a public commitment to resolve outstanding issues with respect to the Korea Free Trade Agreement and bring it to Congress for approval by the end of this year. Lincoln says the implementation of the FTA once passed by Congress will represent a major step toward reaching the goal of doubling U.S. exports within five years.

South Korea represents the fifth largest market for U.S. agriculture - averaging more than $4 billion each year for the past five years. It's estimated that the pending trade agreement would expand U.S. ag exports to South Korea by $1.5 billion annually.

Lincoln vows to continue pushing the Administration to move forward with pending trade agreements with Colombia and Panama as well, to give American businesses, service providers, farmers and ranchers a level playing field that will create more jobs and help grow the rural economy.