Korean free trade called vital

DES MOINES, Iowa – Free trade with South Korea could mean an extra $10 per hog marketed in the United States, American hog industry experts say.However, a South Korea-U.S. free trade agreement languishes in Congress three years after it was signed, while Canadian and Korean negotiators remain unable to clear major hurdles to a successful deal.Jong Hyun Choi, South Korean trade representative in Washington, D.C., warned against delays because competitors are surging into the Korean market.”It would be a sort of nightmarish scenario for U.S. pork producers unless there is action of the U.S. Congress,” Choi said at the World Pork Expo in Des Moines.In a later interview, he made similar comments about the Canadian situation. Chile implemented a free trade deal six years ago, and since then its pork exports to South Korea have skyrocketed, he said.South Korea established free trade with India earlier this year and has a deal with the European Union that is not yet implemented. It is also negotiating with Australia, New Zealand, Colombia and Peru and is beginning discussions with China.National Pork Producers Council trade specialist Nick Giordano said U.S. hog producers will be hurt if others get into the market first.”If they implement and we don’t, in 10 years we’re out of the market,” said Giordano, who shared the podium with Choi. “We can’t compete with zero tariffs.”Many of those negotiating trade deals with South Korea do not export pork, but the EU does.South Korean tariffs on imported pork average 20 to 25 percent, which Choi said still allowed in more than 100,000 tonnes of U.S. pork last year because domestic pork costs more.However, zero tariffs would likely cause sales to South Korea to soar, prompting Iowa State University economist Dermot Hayes to estimate that a trade deal would increase long-term prices for hogs sold in America by $10 per head.Canada-South Korea negotiations have stalled over two issues.Canada insists on free access for Canadian beef, but Korea won’t agree. South Korea insists on free access for South Korean cars and automobile parts, but Canada won’t agree.”Those are the sticking points,” Choi said in an interview.Manitoba Pork Council chair Karl Kynoch said in an interview at the expo that prairie hog farmers will benefit from either a Canadian or U.S. free trade deal with South Korea.”This hog industry is really a North America wide industry,” he said, adding increased exports by either country benefits growers on both sides of the border.Giordano urged Americans to not let Canadians get most of the trade benefits.”Canada has just signed agreements with both Panama and Colombia and guess what, if they implement and we don’t, we are out of the market within 10 years,” he said.”Our friends to the north are very competitive. They have a very good product. And we will lose those markets and that will be a crying shame.”