US fears Australia may gain beef trade advantage with South Korea

US National Cattlemen's Beef Association is worried that if Australia ratifies a trade deal with South Korea one year before the US, Australian beef will have a tariff advantage over US beef for 15 years.

National Cattlemen's president Steve Foglesong said failure of the US Congress and the Obama Administration to ratify a more than two-year free-trade agreement with South Korea now risks significant US losses to Australia on beef exports.

"The Australians are working on their own FTA and if they get that done before we do, they will have a 2.67% tariff advantage over us,” he said.

That will apply every year for 15 years if Australia ratifies its deal one year before the US, according to Foglesong, adding that this is not impossible, with November US elections making FTA ratification this year unlikely.