Congress Seeks Free Trade Deal with South Korea

The United States and South Korea have expressed strong interest in launching a free trade agreement between the two nations.  For cattle producers, such an agreement could eventually mean the end of sky-high tariffs on U.S. beef going there. Although this market currently is closed to U.S. beef, when it reopens the tariffs on beef imports at 40 percent will rank among the highest in the world for beef.

Negotiations could launch in early 2006.  NCBA is working with congressional offices to garner support for this agreement. Led by Korea Caucus Co-Chairs Reps. Vito Fossella (R-N.Y.) and Michael Capuano (D-Mass.), 27 members of the House of Representatives sent a letter to President Bush last month encouraging him to launch free trade agreement negotiations with South Korea.  Days later, the Korea Caucus sent a letter to Korean Ambassador Tae Sik Lee with 17 signatures of House members. 

Along with showing support for the U.S./South Korean free trade agreement, the letters clearly state that the ban on U.S. beef must be resolved prior to launching free trade agreement negotiations.

This potential free trade agreement was a topic of discussion during President Bush’s visit to Asia last month.  In addition, the subject will be addressed at this month’s Sixth World Trade Organization Ministerial Conference in Hong Kong, Dec. 13-18.

Prior to BSE in 2003, South Korea was one of our largest export markets, worth over $815 million annually and second only to Japan. NCBA sees the reopening of this valuable export market along with eliminating high tariffs through a free trade agreement as an immense growth opportunity for U.S. cattle producers.