KORUS at One Year: Expanding Opportunities for U.S.Agricultural Exports
It’s been one year since the United States-Korea Free Trade Agreement (KORUS) entered into force and, as a result of the agreement, U.S. exports of high-value, consumer-oriented agricultural products to South Korea reached a record $2.8 billion in calendar year 2012. Fruit, tree nut, dairy, and vegetable products were major winners in 2012, while some bulk commodity exports,such as wheat and soybeans, have also grown substantially. KORUS is the most commercially significant free trade agreement for the United States since the North American Free Trade Agreement, providing U.S. farmers, ranchers, food processors, and the businesses they support with improved access to Korea’s $1.6 trillion economy and 50 million consumers.
Significant Trade Access Achieved by Major Tariff Reductions under KORUS
KORUS eliminated duties on almost two-thirds of U.S. agricultural exports to Korea, increasing opportunities for many farm products. These products, with duties previously ranging from 1 to 487 percent, include wheat, corn, soybeans for crushing, whey for feed use, hides and skins, cotton, almonds, pistachios, orange juice, cherries, and wine. Additionally, many other products gained duty-free tariff-rate quota access and tariff reductions, with duties falling to zero over time. Following the implementation of KORUS, U.S. exports of fruit, tree nut, dairy, and vegetable products expanded greatly.
