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

Table 3.3 Animal feed exports to Korea, MFN tariff, and liberalization
2002–06 U.S.
average exports
metric tons
2002–06
percent
change
2006
U.S. exports
metric tons
46 HTS 2309.90 Animal Feed Preparations (mixed feeds, etc.), other than dog or cat food, put up for retail
sale.
47 Official statistics of the U.S. Department of Commerce.
48 HTS 2309.10 Dog or cat food, put up for retail sale.
49 Official statistics of the U.S. Department of Commerce.
50 Phillips, “US Petfood Exports Rebounding,” December 2006, 25.
3-10
2007
base tariff
percent
FTA
tariff
staging
Soybean meal 38,744 -23 60,396 1.8 Immediate duty free
Animal feed preps. 8,034 -8 8,089 5.0 or 4.2 Mostly immediate
duty-free
Pet food 13,293 42 12,680 5.0 Immediate duty-free
Distiller’s dried grains with
solubles
6,025 35,024 a
24,587 5.0 Immediate duty-free
Total 66,096 9 105,752 N/A N/A
Sources: Official statistics of the U.S. Department of Commerce; and USTR, “Final - United States - Korea FTA
Texts,” 2007, Tariff Schedule for the Republic of Korea.
Note: Includes HS 230330, 230400, 230910, and 230990. “N/A” = not applicable
a Percent change since 2004 because U.S. exports were zero until 2004; Percent increase is from a small base.
Table 3.4 Exporters share of soybean meal exports to Korea
Country
(Percent)
2002 2003 2004 2005 2006
Brazil 43.6 57.0 36.9 60.3 34.7
Argentina 6.7 7.0 7.3 28.3 34.5
India 37.8 21.4 53.1 9.9 28.0
China 9.3 7.1 1.8 0.9 1.6
United States 2.2 7.1 0.1 0.2 0.7
Rest of World 0.4 0.4 0.8 0.3 0.4
Total 100.0 100.0 100.0 100.0 100.0
Source: Global Trade Information Services, World Trade Atlas Database.
Note: Values may not sum to totals shown because of rounding. Includes HS 2304.
The value of U.S. exports of animal feed preparations 46 (mixed feeds) to Korea has increased
51 percent over the 2002 to 2006 period. 47 The United States has been a leading supplier to
Korea from 2002 to 2006 (table 3.5), and the immediate removal of Korean tariffs (4.2 or
5 percent) as a result of implementation of the FTA would likely improve the U.S.
competitiveness against China and other leading exporters.
The United States is the leading supplier of pet food 48 exports to Korea, with a market share
of more than 50 percent (table 3.6); Korea is the eighth-largest U.S. export market for pet
foods. 49 Korea’s pet food consumption is expected to increase over the next several years as
the trend toward pet ownership becomes increasingly popular as disposable incomes
continue to rise and multiple pet households become more common. 50 The immediate
removal of the 5 percent tariff on pet food under the FTA would likely allow the United
States to increase its already dominant market share against leading competitors.