U.S.-Korea Free Trade Agreement: Potential Economy-wide ... - USITC

pork cuts that are underutilized in the U.S. market, often at a premium price, that will
increase U.S. producer value at lower tariff rates.
National Potato Council 50
In a written submission to the Commission, the National Potato Council (NPC), composed
of potato growers throughout all major U.S. potato-growing regions, stated that it strongly
supports the implementation of the U.S.-Korea FTA. The NPC reported that South Korea is
currently the fifth-largest foreign market for U.S. frozen french fry sales and is considered
an important and growing market for fresh potatoes and dehydrated potato products as well.
The NPC noted that the FTA will result in significant increases in U.S. exports of all potato
products and will enable U.S. firms to maintain market share vis-à-vis their major global
competitors. The NPC added that the immediate implementation of the FTA will provide a
continued competitive advantage over such competitors as Australia, Canada, and New
Zealand, which are also currently negotiating FTAs with Korea.
The NPC stated that its industry members played an active advisory role to USDA and
USTR negotiators throughout the FTA dialogues, which it believes helped the industry
achieve major concessions for many of its products. Of major importance, NPC noted, was
the immediate elimination of the 18-percent tariff on frozen french fries, which it expects
will lead to significant growth in U.S. exports. As a result of the FTA it expects to see
significant growth in exports of dehydrated potato products with the establishment of a
5,000-mt quota, which will increase slightly each year until it ends in the eleventh year after
enactment, together with a declining over-quota tariff rate. Further, in the fastest-growing
area of potato trade, fresh potatoes, the NPC commented that the FTA provides a 5-month,
duty-free entry period for fresh potatoes intended for chipping and a 3,000-mt duty-free
quota for table-stock potatoes.
Pharmaceutical Research and Manufacturers of America 51
In written and hearing testimony, the Pharmaceutical Research and Manufacturers of
America (PhRMA) stated that it represents pharmaceutical research and biotechnology firms.
PhRMA expresses support for what it calls “one of the most economically significant FTAs
in recent years.”
PhRMA reported that tearing down market access barriers and improving protection and
enforcement of intellectual property rights in Korea will have significant, positive effects for
patients in the United States and Korea. According to PhRMA’s written statement, U.S.
pharmaceutical companies face a range of market access impediments in Korea, including
shifting standards of review for having new, innovative products listed on the national
reimbursement list and lax enforcement of intellectual property rights. PhRMA added that
the FTA makes significant strides forward in addressing these long-standing intellectual
property and market access issues in Korea.
50 National Potato Council, written submission, June 19, 2007.
51 Jeffrey A. May, assistant general counsel, Pharmaceutical Research and Manufacturers of America,
written submission, June 6, 2007; and testimony before the U.S. International Trade Commission,
June 20, 2007.
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