ITC: US pork benefits from Korea trade deal
The price competitiveness of US pork will be enhanced through the
increased market access the United States will gain under the US-Republic of
Korea Free Trade Agreement (FTA), according to a report by the US International
Trade Commission (ITC).
The US National Pork Producers Council (NPPC) welcomed completion of the
ITC's economic analysis, which estimates the Korea trade deal will increase the
US gross domestic product by up to $11 billion.
NPPC is a strong
supporter of the trade agreement.
completion of the ITC report is a positive step forward in the process of
implementing the trade agreement with South Korea," said NPPC president Jill
"This FTA offers US pork producers a significant opportunity
to increase pork exports to an already lucrative market for US
South Korea already is the fourth largest destination for pork
from the United States, which shipped 109,198 metric tonnes valued at $232
million to the Asian nation in 2006.
Those amounts are expected to
soar under the free trade agreement. For pork producers, when the pact is fully
implemented it will cause live US hog prices to be $10 higher than would
otherwise have been the case, according to Iowa State University economist
Economy wide study
Under the rules of Trade
Promotion Authority, the ITC must complete an economy wide study of any free
The report on the Korea FTA covers a broad range of
sectors, including agriculture, services and manufactured goods.
The ITC noted that the increased market access would
likely enhance the price competitiveness of US pork in the Korean market,
"especially with respect to pork from Chile."
implemented an FTA with Korea in 2004 that gives it duty-free access to the
Korean market beginning in 2014. Chile is a major competitor with the United
States in the Korean market for pork.
deal, on which NPPC worked to get favorable treatment for US pork and pork
products, is pending a vote by Congress. The National Assembly of the Republic
of Korea also must approve the pact, which was formally completed April
"It is now time for Congress to act," NPPC's Appell said, "It
should ratify the US-South Korea Free Trade Agreement expeditiously because it
will benefit US pork producers and the overall US
Promotion Authority (TPA)
â€¢ National Pork Producers Countil (NPPC)
â€¢ Iowa State University
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