President Donald Trump and South Korea President Moon Jae-in Sept. 24 signed off on the renegotiated U.S.-Korea Free Trade Agreement as the United Nations General Assembly opened in New York.
“We welcome the successful conclusion of negotiations between our governments that have resulted in amendments and modifications to improve the United States-Korea Free Trade Agreement,” the two presidents said in a statement released by the White House.
“From day one, I promised the American people that I would renegotiate our trade deals to ensure that our agreements were fair and reciprocal,” Trump said at the signing ceremony. “The new U.S.-Korea agreement includes significant improvements to reduce our trade deficit and to expand opportunities to export American products to South Korea. In other words, we are now going to start sending products to South Korea.
“These outcomes give the finest American-made automobiles, innovative medicines and agricultural crops much better access to Korean markets. I think our farmers are going to be extremely happy. It was very limited as to what they could do and what they could send. And now it’s an open market, and they’re going to be sending a lot more farm products.”
Moon said, “Today we have made amendments and modifications to improve the existing agreement. With the swift conclusion of the negotiations for the revision, uncertainty surrounding our FTA have been eliminated. And, as a result, companies from both countries will now be able to do business under more stable conditions.
“In addition, I’m hopeful that this will provide us with a platform upon which our bilateral economic ties will be elevated to a higher level in a freer, fairer and more mutually beneficial direction.
“If our two countries could live up to the spirit embodied in the revised ROK-U.S. Free Trade Agreement, I believe that we will be able to expand mutual trade and investment, create new jobs, and usher in a better future. I hope the revision of the ROK-U.S. FTA will also contribute towards solidifying our cooperation in other fields.”
Secretary of Agriculture Sonny Perdue said in a statement, “We are entering into a new KORUS agreement that is a better deal for the entire United States economy, including the agricultural sector. This represents an important improvement in trade relations between our two nations, building on long-standing cooperation we have enjoyed.
“This agreement adds to the momentum building for President Trump’s approach to trade, which is to stand strong for America’s interests and strike better deals. I am optimistic that the dominoes will continue to fall: KORUS, then a new NAFTA, and new agreements with the European Union, Japan and, most notably, China. As an avid sportsman, I would say ‘put this one in the bag and keep hunting for more.’”
Agricultural groups were positive about the signing of the pact. American Farm Bureau Federation President Zippy Duvall said in statement that the agreement “preserves a two-way trade relationship that greatly benefits America’s farmers and ranchers. South Korea bought $6.9 billion worth of U.S. agricultural goods last year, making it our sixth-largest export market.
“Whether it’s corn, soybeans and wheat, or poultry, eggs and meat products, our agricultural exports to South Korea are growing thanks to the U.S.-Korea FTA.
“Renewal of our trade deal with South Korea is much-needed good news and help for our farmers and ranchers as the agricultural economy struggles. Securing export markets for our products is critical, and we encourage the administration to continue to push for conclusion of other trade agreements, such as an updated NAFTA agreement with Canada and Mexico.
“Our negotiators also should continue pushing to remove barriers to U.S. ag trade in other parts of Asia. As Agriculture Secretary Sonny Perdue recently stated, now would be a good time to take a fresh look at the Trans- Pacific Partnership, an agreement that Farm Bureau has estimated would boost U.S. agricultural exports by $4 billion per year. Rejoining TPP negotiations would send a clear message to other nations, such as China, that the U.S. is serious about growing key markets for our agricultural products around the world.”
U.S. Meat Export Federation President and CEO Dan Halstrom said, “Signing of the revised KORUS agreement is reassuring news for the U.S. beef and pork industries. The market access terms secured in the original KORUS not only helped increase U.S. red meat’s market share in South Korea, but also bolstered consumption by making our beef and pork products more affordable and accessible to Korean consumers.
“The United States is the largest supplier of beef to Korea and trails only the European Union as the second-largest pork supplier. U.S. red meat exports to Korea set a record last year of $1.7 billion, up 19 percent year-over-year and up 69 percent from 2012, when KORUS entered into force.
“This trend continues in 2018, with both U.S. beef and pork export value increasing more than 50 percent compared to a year ago. Korea is now the second-largest value market for U.S. beef (after Japan) and fourth-largest for U.S. pork (after Japan, Mexico and China/Hong Kong).
According to the USMEF statement, under KORUS, most U.S. pork products now enter Korea duty-free. The duty rate on U.S. beef has been reduced from 40 percent to 21.3 percent and will continue to decline each year until it is eliminated by 2026. All major red meat competitors also now have free trade agreements with Korea, but the U.S. has benefited from KORUS being implemented earlier than most of these FTAs, providing the U.S. with a head start on tariff elimination.
National Cattlemen’s Beef Association President Kevin Kester released the following statement in response to the signing of the modernized Korea-United States Trade Agreement (KORUS):
“KORUS is a prime example of how U.S. producers benefit from trade agreements that reduce tariffs and implement science-based standards. Less than a decade ago, U.S. beef exports to South Korea were severely limited by a 40 percent tariff and a host of non-tariff trade barriers. KORUS tore down those barriers, helping turn South Korea into a leading destination for U.S. beef. In fact, exports to South Korea accounted for over $1 billion annually over the last two years.
“We applaud President Trump for his leadership in improving KORUS for other sectors and we know that a modernized KORUS agreement will allow U.S. producers to continue focusing on what we do best: Providing safe, high-quality beef for Korean families to enjoy.”
Larry Dreiling can be reached at 785-628-1117 or [email protected].
