DES MOINES, Iowa – Like many other folks at this year’s World Pork Expo, Bill Kessler walked around, drank coffee and chatted with a large sticker on his shirt.
The green and white sticker summarized a pressing issue for America’s farmers: “U. S. Agriculture Says Yes to Colombia/Panama/South Korea Free Trade Agreements.”
Kessler, a pork producer from Mexico, Missouri, said he wore the sticker because he supports the three free trade agreements awaiting U.S. congressional approval.
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He said the deals could help U.S. hog producers export an additional $750 million annually in pork, which would in turn add $10 to $11 to the price that farmers receive for each hog.
While U.S. producers are worried their government won’t pass the free trade agreements this summer, the Canadian Pork Council is fretting about the effects on Canada.
The council said earlier this year that Canada could lose out on an expected $500 million increase in exports to South Korea if the U.S. strikes a deal and Canada doesn’t.
For the American-based National Pork Producers Council, the deal with Korea is especially important. The council, which hosted its annual international trade show in Des Moines June 8-10, said the Korean market represents most of the $750 million in potential export gains.
The council invited Han Duk Soo, Korean ambassador to the United States, to deliver the keynote speech at the Expo to emphasize the importance of the deal.
The U.S. holds the dominant position in the Korean market, exporting 100,000 tonnes of pork annually to the country of 48 million people.
However, Han said other pork exporters could take over the South Korean market if the U.S. Congress fails to ratify the deal this summer.
“The U.S. pork industry would lose its dominant position in the Korean market,” he said.
Han said the most immediate threat would be imports from the European Union because a free trade agreement between the EU and South Korea will be enacted July 1.
The EU deal and the not-yet-ratified agreement with the U.S. will eliminate Korean tariffs on pork imports over a 10 year period. The tariffs are now 25 percent.
Han said politics associated with the 2012 American presidential election would likely delay ratification until at least 2013 if the U.S. Senate and House of Representatives fail to approve the deal by the congressional recess in August.
An outbreak of foot-and-mouth disease in South Korea’s pig herd six months ago has made the Korean market even more lucrative because the country’s ability to produce pork has been badly damaged.
Han said Korea has been forced to export substantially more pork in 2011.
“In the first quarter of this year there was a tremendous increase (in imports),” he said. “We imported … almost the annual import amount of last year.”
A Han aide said South Korea imports 300,000 tonnes of pork annually. Canadian exports to the country were 35,000 tonnes last year.
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