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News 616 views last update:Apr 4, 2007

Warm welcome for trade deal US-Korea

The National Pork Producers Council (NPPC) in the US has applauded the completion of a Free Trade Agreement (FTA) with South Korea.

The deal will generate hundreds of millions of dollars in new pork exports and ensure that US pork exports to South Korea will be on an equal footing with pork from other countries, the NPPC writes on its website.


Chile
Chile, for example, enjoys lower duties on its pork exports to Korea - and will have unlimited duty-free access by 2014 - because of the trade agreement it has with South Korea. That deal took effect in 2004.


"US pork producers are excited about the new deal and will work very hard for congressional passage of the agreement," said NPPC president Jill Appell.


Minimising
"The Korean negotiators wanted to minimise the market access gains for US pork," said Appell, "but the US trade team came through for pork producers and delivered a fabulous deal that will eliminate duties on US pork exports and generate hundreds of millions of dollars in new pork exports."


US pork producers first gained meaningful market access to South Korea through the WTO Uruguay Round. Since that trade deal was implemented in 1995, US pork exports to South Korea have increased 2,217% by volume and 2,606% by value.


The country is now the fourth largest market for US pork and pork products, and the United States is the No 1 foreign supplier of pork to the Asian nation.


Biggest deal
The free trade deal was concluded on Monday. For the US, this deal means the biggest free trade deal since NAFTA (1992), for South Korea it is the most important trade deal ever.


However, parliaments in both countries have yet to ratify the treaty.


Related news items
• NPPC wants 'ambitious deal' for South Korea (22 March 2007)


Related websites:
• World Trade Organisation (WTO)
• National Pork Producers Council (NPPC)


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