U.S.-Republic of Korea FTA Pork Fact Sheet

• U.S. pork exports to Korea have increased as a result of concessions made by Korea in the Uruguay Round. In 2006 exports climbed to 109,198 metric tons valued at $232 million, an increase of 2,217 percent by volume and 2,606 percent by value since implementation of the Uruguay Round. Exports to the Republic of Korea in 2006 grew aggressively over 2005 exports—52 percent increased in volume terms and a 50 percent increase in value terms. South Korea currently is the 4th largest export market for U.S. pork.

• The United States is the largest foreign supplier of pork to South Korea. Major competitors include the EU, Canada, Chile and Australia. The U.S.-Korea FTA will give U.S. pork preferences in this lucrative market over other foreign competitors.

• U.S. pork products currently face significant tariffs in South Korea. For example, the current South Korean duty on bellies, a high demand pork product, is 25 percent. However, under the terms of the U.S.-Republic of Korea FTA tariffs will be eliminated on all frozen and processed pork products by 2014. Fresh chilled pork will be duty free ten years after implementation with a safeguard.

• In addition to ambitious market access gains -the Republic of Korea has agreed to accept all pork and pork products from USDA approved facilities. This provision ensures trade will be possible without onerous technical or sanitary barriers.

• The U.S.-Republic of Korea FTA will add hundreds of millions of dollars to the U.S. pork industry in additional pork exports. Exports positively impact the price of live hogs and therefore the agreement will benefit all U.S. pork producers. According to Iowa State University economist Dermot Hayes, the Korea agreement, when fully implemented, will cause live U.S. hog prices to be $10.00 higher than would otherwise have been the case.
 

Last Updated: July 6, 2007