June 29, 2010

US and Korea to resolve FTA issues

The US has initiated further discussions with South Korea to resolve outstanding issues regarding the Free Trade Agreement.

The aim is to level the playing field for US 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.

US Trade Representative Ron 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 finalising ways to address these concerns and deliver to Americans the jobs and economic opportunity this agreement can bring.

If implemented, the Korea-US Free Trade Agreement would cut Korea's tariff from 40% to zero within 15 years, bringing the US beef industry US$15 million in new benefits the first year. National Cattlemen's Beef Association (NCBA) President Steve Foglesong says the trade deal could potentially be one of the most significant bilateral agreements in US 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 US would give Australians an advantage over US beef for 15 years. He says that would devastate the US beef industry. With the US economy continuing to suffer and other countries outpacing the US 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 US$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 US soy for crushing and to US soy meal. Also tariffs on refined soyoil would be eliminated over the next five years, and tariffs on crude soyoil would be eliminated over 10 years.

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