Leaders of the U.S. Meat Export Federation say that organization is encouraged by the Obama Administration's intention to press forward on Congressional ratification of the pending U.S.-Korea Free Trade Agreement. Tariffs of 40% on U.S. beef and 25% on U.S. pork products exported to Korea will be eliminated under the terms of the FTA. Tariffs on U.S. beef would be phased out over the course of 15 years. Tariffs would be eliminated on frozen and processed U.S. pork by 2014 and on chilled pork within 10 years.
USMEF President and CEO Philip Seng says as the EU and Australia move ever closer to implementing FTAs with Korea the urgency of the U.S.-Korea agreement becomes all the more pronounced. Seng says Korea's high tariffs already impact demand by artificially raising the cost for consumers. But the situation will become even more difficult if major competitors in the market get a running head start on the tariff reduction process. Seng says the meat industry has come so far since U.S. beef returned to Korea in 2008 and ratification of the FTA would allow building further on the momentum. As for pork, he says they've already seen an FTA provide momentum for Chilean pork exports and the U.S. cannot afford to fall behind other major competitors. The U.S. is still the leading provider of pork to Korea, but Seng says we absolutely cannot afford to take that position for granted.
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