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The U.S.-Korea Free Trade Agreement (KORUS FTA) will provide America’s
farmers, ranchers, food processors, and the businesses they support with
improved access to the Republic of Korea’s 49 million consumers. If approved by
Congress, this would be the most economically significant trade agreement for
the U.S. agricultural sector in 15 years.
Under this agreement, more than 60 percent of U.S. agricultural exports will
become duty free immediately. Lower tariffs benefit both U.S. suppliers and
Korea’s consumers. The KORUS FTA will help the United States compete against
Korea’s other major agriculture suppliers and help keep the United States on a
level playing field with Korea’s current free trade partners, such as Chile, and
any future FTA partners.
Cattle Hides
With the Agreement…
U.S. exports of cattle hides and skins will receive immediate duty-free
access upon implementation.
Duty-free access for cattle hides alone equates to an annual duty savings of
approximately $4 million based on recent trade values.
The Trade Situation…
Cattle hides make up over 90 percent of U.S. animal hides and skins shipped
to Korea. South Korea is the second largest market for cattle hides (whole hides
and parts), and accounts for about one-sixth of U.S. overseas sales. From 2005
through 2007, U.S. suppliers shipped an average $310 million worth of cattle
hides to Korea.
U.S. cattle hides dominate the Korean import market with an 89-percent share.
Korea’s import market for cattle hides has been stagnant for many years, and has
declined since 2002. Tanning industries in China and other Asian countries are
taking business away from Korean industries.
The Current Market Access Situation…
Barriers to trade are minimal. U.S. cattle hides face an applied tariff rate
of 1 percent. The WTO bound tariff rate is 5 percent.
Mink
With the Agreement…
U.S. exports of mink furskins will receive immediate duty-free access upon
implementation.
Duty-free access for mink furskins alone equates to an annual duty savings of
nearly $1 million based on recent trade values.
The Trade Situation…
Korea, the fourth largest market for mink skins (raw, tanned, or dressed),
accounts for 16 percent of U.S. overseas sales. From 2005 through 2007, U.S.
suppliers shipped an average 631,000 mink skins valued at $30.2 million to
Korea. The United States is the largest mink fur supplier with 42 percent of the
Korean import market. Other key competitors are Denmark and Canada. The U.S.
market share has remained largely unchanged since 1999.
The Current Market Access Situation…
Barriers to trade are minimal. U.S. mink skins face an applied tariff rate of
3 percent. The WTO bound tariff rate is 36 percent.
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its
programs and activities on the basis of race, color, national origin, gender,
religion, age, disability, political beliefs, sexual orientation, and marital or
family status. (Not all prohibited bases apply to all programs.) Persons with
disabilities who require alternative means for communication of program
information (Braille, large print, audiotape, etc.) should contact USDA
’s
TARGET Center at (202) 720-2600 (voice and TDD).
To file a complaint of discrimination, write USDA, Director, Office of Civil
Rights, Room 326-W, Whitten Building, 1400 Independence Avenue SW, Washington,
DC 20250-9410, or call (202) 720-5964 (voice and TDD). USDA is an equal
opportunity provider and employer.
