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

Table 3.5 Exporters share of animal feed preparations exports to Korea
51 For additional analysis regarding SPS, TBTs, and other NTMs, see chap. 5 of this report.
52 Nancy K. Cook, director, Technical and Regulatory Affairs, Pet Food Institute, e-mail message
to Commission staff, June 25, 2007.
(Percent)
Country 2002 2003 2004 2005 2006
China 10.4 17.7 24.7 17.9 21.0
United States 21.9 19.8 16.2 12.2 16.1
Philippines 0.0 9.7 15.9 23.2 15.3
Netherlands 18.1 12.4 8.6 9.6 8.6
Japan 18.5 14.4 9.4 7.1 8.1
Rest of World 31.2 26.0 25.2 30.0 30.9
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 230990.
Table 3.6 Exporters share of pet food exports to Korea
(Percent)
Country 2002 2003 2004 2005 2006
United States 46.6 63.5 53.8 55.1 58.6
Australia 35.9 17.5 22.5 21.2 18.6
China 0.8 2.5 4.9 7.8 9.3
France 2.7 3.5 3.9 2.6 5.1
Rest of World 14.0 13.0 14.8 13.3 8.4
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 230910.
Korea, however, has SPS and technical barriers to trade (TBT) measures that have
constrained U.S. pet food exports. Interpretation and implementation of the FTA’s TBT
chapter and the actions of the standing committee established by the FTA’s SPS chapter
would likely be important to fully realize these gains in market access. 51 As a result of the
U.S. outbreak of bovine spongiform encephalopathy (BSE) in 2003, Korea has banned U.S.
exports of pet foods containing beef or other ruminant products. Additionally, Korea requires
that U.S. exports of pet food containing animal proteins, including fish meal, need to be
certified that they are entirely of U.S. origin. Consequently, animal proteins from other
countries, which could be lower-cost, are prohibited in pet foods. In addition, pet food
importers are required to provide a full ingredient list with percentages of each ingredient
by weight for registration at provincial government offices. The absence of Korean
safeguards to prevent disclosure of this proprietary information has disrupted U.S. exports
of pet food to Korea. 52
U.S. exports of distiller’s dried grains with solubles (DDGS) to Korea were negligible until
2004, but have risen sharply since then (table 3.7). A large proportion of DDGS are
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