U.S.-Korea FTA Highlights Access and Beef Concerns, NCGA Notes (4-3-07)

The U.S.–South Korea Free Trade Agreement while increasing market access for U.S. corn, is causing concern for some livestock customers, noted the National Corn Growers Association. The FTA provides new market opportunities, but it does not result in open beef trade between the two countries.
 
“Korea is one of the United States’ larger corn markets and the U.S.-Korea FTA will create new export opportunities for bulk corn and coproducts”, said Ken McCauley, NCGA president. “Korea is an extremely important market for corn’s value-added products. While we are pleased the FTA will increase pork exports to Korea, NCGA shares the beef industry’s concern that commercially viable trade must resume under internationally recognized guidelines established by the World Organization for Animal Health (OIE).” 
 
According to the U.S. Trade Representative’s office, U.S. corn sales to South Korea totaled 10.8 million bushels (275,000 metric tons) in March 2007. Korea imported 219.3 million bushels (5.57 million tons) of U.S. corn in 2006.
 
In 2006 Korea imported about 30,000 metric tons of distillers dried grains (DDG), mostly from the United States and China. While still relatively small, DDG imports are growing, and there is significant potential for increased use in feed rations. It is expected that Korean imports of DDGs might reach close to 100,000 metric tons in 2007. NCGA estimates that U.S. DDG production will reach more than 30 million tons by marketing year 2010-2011.