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

to improve accessability to foreign markets for their products, especially in bulk containers
or in a semifinished state of production. 151
The report of the ATAC for Trade in Fruits and Vegetables reported that members view the
negotiated FTA agreement as generally positive for the U.S. vegetable sector. 152 The report
notes that Korea is a net food importer and expresses the view that Korea is likely to increase
food imports from the United States in the future. The report also states that the FTA should
place U.S. vegetable producers in a better position to benefit from agreed-upon tariff
concessions that could provide additional benefits to vegetable export interests. 153 The report
expresses concern, however, with the way in which Korea has used SPS measures in the past
to protect certain industries from import competition, and said that preferential FTA tariff
treatment would do little for improved bilateral trade if SPS barriers continue to be
imposed. 154
In its report, the ATAC for Trade in Processed Foods took no position on the U.S.-Korea
FTA. It noted, however, that it strongly endorses the goal of opening foreign markets, the
promotion of tourism, trade, and investment, the expansion of economic opportunity, and
the strengthening of political stability and national security for all nations. 155 It also
expressed concern about the creation of special rules of origin, and stated that it was
important to resolve existing SPS and TBT issues. 156 In its report, this ATAC said that it
endorses the provision for tariff-free status of more than one-half of all food and agriculture
exports (including many processed products) to Korea upon enactment of the agreement, and
the 5-year tariff phaseout program for many other processed foods. 157 The report noted,
however, that members were particularly concerned about the possibility that benefits
otherwise accrued to many processed food items would be lost because of continuing
technical trade barriers not addressed in the FTA. The report said that Korea does not allow
the use of a number of U.S. FDA-approved food additives commonly used in the U.S. foodmanufacturing
process, preventing export to the Korean market of foods containing such
additives. 158
The report of the Agricultural Policy Advisory Committee (APAC) for Trade stated that a
majority of its members believe that the U.S.-Korea FTA will benefit U.S. farmers (including
vegetable farmers). This report states further that priority must be given to comprehensive
agricultural trade reform. 159 This APAC calls for the elimination of barriers to trade in
agricultural products, through negotiations at the multilateral, regional, and bilateral levels,
for the purpose of improving market opportunities for U.S. agriculture through fairer and
more open trade conditions. 160 The report notes that two-thirds of all Korean imports of U.S.produced
agricultural products will receive duty elimination upon enactment of the
agreement and 90 percent of Korean imports from the United States will be duty-free within
15 years. 161
151 U.S. industry official, telephone interview by Commission staff, May 30, 2007.
152 ATAC on Trade in Fruits and Vegetables, Advisory Committee Report, April 2007, 2.
153 Ibid., 2-3.
154 Ibid., 4.
155 ATAC for Trade in Processed Foods, Advisory Committee Report, April 27, 2007, 3.
156 Ibid., 4.
157 Ibid., 5.
158 Ibid.
159 APAC for Trade, Agricultural Policy Advisory Committee for Trade Report, April 27, 2007, 2.
160 Ibid., 3.
161 Ibid.
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