NCGA Commends Action on Free Trade Agreement with Korea (3-29-06)

Negotiation of a free trade agreement (FTA) with Korea will positively impact the agriculture industry, according to the National Corn Growers Association (NCGA), which recently commended U.S. Trade Representative (USTR) Rob Portman for pursuing this FTA. Korea is the fifth largest agriculture market for U.S. agricultural exports and is the United States’ seventh largest trading partner.

NCGA presented formal comments March 20 in response to Portman’s request for comments on negotiating a FTA with the Republic of Korea, which appeared in the Federal Register on February 9.

According to the USTR, Korea is the world’s second largest feed grain importer, importing 10.5 million metric tons of feed grains and grain products – including 8.5 million metric tons of corn. In 2005, Korea imported $2.25 billion in U.S. agricultural exports. Of that total, 10 percent was corn.

NCGA President Gerald Tumbleson said the U.S.-Korea FTA will give the agriculture industry greater market access through the elimination of tariffs, which average 52 percent on agricultural products and have previously limited market opportunities for U.S. farm products.

“We believe negotiation of a comprehensive FTA with Korea could provide excellent new market opportunities, not only for U.S. corn, but also for meat, poultry and processed food products,” he said.

In addition, NCGA stated this FTA will present an opportunity to address a number of sanitary and phytosanity barriers that contribute to the limited market access for the U.S. agriculture industry, as well as affect trade in biotechnology, processed food and U.S. livestock products.

To read NCGA’s USTR comments in their entirety, click here.