US Poultry & Egg Industry Supports US-Korea FTA19 March 2012
US - The US poultry and egg industry os backing the US-Korea Free Trade Agreement, which became effective on 15 March, and has applauded the work of the Office of the US Trade Representative and the US Department of Agriculture in concluding the agreement.
The US-Korea FTA will greatly improve market access for US poultry and egg exports to South Korea, mostly by reducing and eliminating import duties. In 2011, Korea imported nearly $143 million in US poultry and egg products. Under the FTA, annual US poultry meat exports to Korea could more than double, while annual egg exports could triple. Over the first 10 years of the agreement, the increase in exports to Korea could easily make this country one of the top international markets for US poultry and eggs.
Under terms of the agreement, Korea’s 20-percent import duty on frozen chicken leg quarters will be phased out in 10 equal annual reductions, while the duty on breasts and wings will be reduced in 12 equal annual installments. Korea’s 18-per cent duty on frozen turkey cuts will be reduced to zero in seven equal annual installments, and its 27-per cent duty on processed egg products, including egg yolks, will be phased out over 12 years.
The US is the leading supplier of poultry meat and egg products to Korea.
The future of the US poultry and egg industry depends on the continued expansion of exports. According to USDA calculations, the industry’s current annual exports of nearly $4.4 billion supports more than 50,400 US jobs, and that each billion dollars in US poultry and egg exports equates to about 11,525 American jobs throughout the economy.
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