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International
Trade
Pork Producers Support
Trade Agreements
In 2006, the United States
exported 1,262,499 metric tons of pork valued at $2.864
billion. This is a 9 percent increase over 2005 exports in
volume terms and 8.7 percent in value terms. 2006 was 15th
straight year of record pork exports. U.S. exports of pork
and pork products have increased by more than 433 percent in
volume terms and more than 401 percent in value terms since
the implementation of the NAFTA in 1994 and the Uruguay
Round Agreement in 1995.
Much of the growth in U.S.
pork exports is attributable to new and expanded market
access. The top eight export markets in 2005 were Japan,
Mexico, Canada, China, Korea, Russia, Romania and Taiwan.
The Australian market also experienced significant growth
following recent trade initiatives.
Benefits of Expanding U.S. Pork
Exports
Prices
The Center for Agriculture and Rural Development
(CARD) at Iowa State University has calculated that in 2004,
U.S. pork prices were $33.60 per head higher than they would
have been in the absence of exports.
Jobs
The USDA has reported that U.S. meat exports
have generated 200,000 additional jobs and that this number
has increased by 20,000 to 30,000 jobs per year as exports
have grown.
Income Multiplier
The USDA has reported that the income multiplier
from meat exports is 54 percent greater than the income
multiplier from bulk grain exports.
Feed Grain and Soybean
Industries
Each hog that is marketed in the United States consumes
12.82 bushels of corn and 183 pounds of soybean meal. With
an annual commercial slaughter of 105.3 million animals in
2006, this corresponds to 1.34 billion bushels of corn and
9.63 million tons of soybean meal. Since approximately 15
percent of pork production is exported, pork exports account
for approximately 201 million bushels of corn and 1.44
million tons of soybean meal.
However, as the benefits from
the Uruguay Round and NAFTA begin to diminish because the
agreements are now fully phased-in, the creation of new
export opportunities becomes increasingly important.
International
trade is a growing part of U.S. pork industry success and
NPPC is committed to fighting for free and open trade. Great
potential exists for pork producers in the international trade
arena, and it is essentially that the industry takes full
advantage of opportunities for increased trade and to overcome
barriers to access in foreign markets.
2007
Pork Congressional Trade Priorities
Extend Trade Promotion
Authority (TPA)
With 96 percent of the worlds population residing outside
of the United States, it is essential that U.S. pork
producers continue to gain access to more of these potential
customers. New and expanded market access through trade
agreements is the most important catalyst for increased U.S.
pork exports.
U.S.-Republic of Korea FTA
According to Iowa State University economist Dermot Hayes,
the Korea FTA, when fully implemented, will cause live U.S.
hog prices to be $10 higher than would otherwise have been
the case.
Colombia Trade Promotion Agreement
According to Iowa
State University economist Dermot Hayes, the Colombia
agreement, when fully implemented, will cause live U.S. hog
prices to be $1.63 higher than would otherwise have been the
case. That means that the profits of the average U.S. pork
producer will expand by 14 percent, based on 2005 data.
Peru Trade Promotion Agreement
According to Iowa
State University economist Dermot Hayes, the Peru agreement,
when fully implemented, this FTA will cause live U.S. hog
prices to be 83 cents higher than would otherwise have been
the case. That means profits of the average U.S. pork
producer will expand by 7 percent, based on 2005 data.
Panama Trade Promotion Agreement
According to Iowa
State University economist Dermot Hayes, the Panama
agreement, when fully implemented, will cause hog prices to
be 20 cents higher than would otherwise have been the case.
Therefore exports to Panama will be worth approximately
$20.6 million to the U.S. pork industry in additional
revenue than otherwise would have been the case.
Last Updated: June 21,
2007
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