FTAs To Boost US Agriculture, Says Kirk

The United States House of Representatives Agriculture Committee has held a public hearing to examine the three pending free trade agreements (FTAs) with Colombia, Panama, and South Korea, and the issues surrounding their implementation.

In his testimony to the Committee, United States Trade Representative Ron Kirk pointed out that, while the US had a trade surplus in agricultural trade of almost USD34bn in 2010, continued growth in its agricultural exports depends upon accessing new markets for America’s farmers and ranchers and ensuring their continued access to existing markets.

“Today, the pending agreements with South Korea, Panama, and Colombia are at the forefront of our efforts to open new markets,” Kirk said. “Last week, we started technical discussions with Congress on those agreements, which are part of a broad trade agenda that also includes the reauthorization of a robust Trade Adjustment Assistance program, renewal of the expired trade preference programs, and pursuing Permanent Normal Trade Relations for Russia as it joins the World Trade Organization.”

“The US-South Korea FTA will provide America’s farmers, ranchers, food processors, workers and the businesses they support with improved access to South Korea’s USD1 trillion economy and 49m consumers,” he continued. “Upon entry into force, the US-South Korea FTA eliminates tariffs on two-thirds of American agricultural exports immediately, including fruits, nuts, vegetables, and soybeans.”

“Separately,” he added, “we have announced that once this agreement is in force, we will request consultations with South Korea under the 2008 beef protocol to discuss the full application of that agreement. President Obama and I are committed to working with you, to further open beef access across Asian markets consistent with international guidelines.”

He testified that US agricultural exporters will also gain from the Panama FTA. More than half of current US farm exports to Panama will become duty-free immediately, and other products will gain duty-free access with out-of-quota tariffs reduced over time.

“Many American agricultural commodities will also benefit from the Colombia FTA, as more than half of current US farm exports to Colombia will become duty free immediately,” Kirk confirmed. “Virtually all remaining tariffs will be eliminated within 15 years. Overall, the International Trade Commission has estimated that the agreement would expand exports of US goods to Colombia by more than USD1bn.”

The Chairman of the Committee, Frank Lucas, concluded that "America's farmers and ranchers are competing in the global market in the face of stiff protectionism while their foreign competitors are gaining preferential treatment and access at their expense. We must act quickly and bring these agreements to a vote before July 1. These FTAs will expand US exports, create jobs, and bring much-needed income to communities across rural America.”

May 17^th, 2011

Source: Tax News