US meat could gain billions from potential trade pacts 

US beef, pork and poultry producers could begin selling a lot more product to South Korea, Colombia and Panama if the Obama administration and US Congress sign off on three trade pacts.

 

The three free trade agreements, or FTAs, were negotiated during the George W. Bush administration and would eventually foster an additional US$2.3 billion worth of US beef, pork and poultry exports per year by phasing out tariffs over several years, according to a new study by the American Meat Institute (AMI).

 

But the US trade pacts remain idle while other countries benefit from their own pacts with South Korea, Colombia and Panama, undercutting US exports, according to the report.

 

The US shipped US$216 million worth of beef to South Korea in 2009. If the US-South Korea FTA had been fully implemented in 2009, that total would have been instead US$1.6 billion, the report said.

 

Colombia imported US$7.1 million worth of US pork in 2009, but if the US pact with that country had been implemented it would have likely bought US$76 million worth, it added.

 

South Korea now applies between 18% and 40% in tariffs on US meat, but most of those would be completely phased out over several years if the FTA were to be implemented. The situations and are similar for US trade with Colombia and Panama.

 

Bill Westman, AMI vice president for international affairs, said the group is still waiting for the Obama administration to give its stamp of approval to the trade pacts and send them to Congress for final ratification.

 

The longer it takes, the more US exporters stand to lose, he said. For example, Australia is now trying to close a trade pact of its own with South Korea and if that happens, it could put US exporters at a severe disadvantage.