High Value Ag Exports to South Korea Increase Due to KFTA Duty Breaks, Says FAS
U.S. exports of high-value agricultural goods to South Korea reached a record $2.9 billion in 2012 as a result of the U.S.-Korea Free Trade Agreement, said the Foreign Agricultural Service. KFTA, which entered into effect a little over one year ago, has particularly benefited exporters of fruit, tree nuts, dairy, and vegetable products. Corn exports, on the other hand, have dramatically fallen due to a drought in the U.S. and increased competition from Brazil and the E.U., FAS said.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
According to the FAS release, exports of several products increased dramatically in 2012 after KFTA tariff reductions were put into place. Fruit juice exports shot up by 173 percent in 2012 after South Korea’s 54 percent duty on U.S. concentrate was eliminated, for example, while fresh fruit exports increased by 42 percent during the same period. Other large increases in 2012 exports of agricultural products to South Korea included tree nuts by 54 percent, potatoes by 35 percent, cheese by over 100 percent, and wine by 52 percent.