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

product from China, a global mushroom producer currently commanding the greatest share
of the U.S. market. 189
Views of Interested Parties
The California Tomato Growers Association, Inc., made up of growers of tomatoes for
processing, states that the FTA could result in California processed-tomato industry sales to
Korea of $15 million annually as compared with sales of $11.2 million in 2004. 190 The
association states that, although it has been successful in the past at exporting processed
tomato products to Korea, it identified three major issues that will affect future success at
export sales: (1) Korean tariffs, (2) Korean import and inspection procedures, and (3) Korean
government enforcement actions. 191
The American Dehydrated Onion and Garlic Association expressed opposition to the FTA
in a written submission to the Commission. The association cited potential harm to the
industry from rising imports of dehy onions and garlic. 192 It points out that the industry
continues to struggle with rising levels of lower-priced imports from China and other
countries, and that the FTA is unlikely to provide any opportunity for U.S. exports of dehy
onions or garlic to Korea, a market already supplied by products from China. The association
stated that U.S. imports of dehy onions and garlic are subject to high U.S. duties and,
although there have not been any appreciable import volumes recorded in recent years,
members of the industry are concerned with the possibility that imports from China
transshipped through Korea could rise dramatically. 193
The American Mushroom Institute (AMI), 194 which represents U.S. growers and processors
of cultivated mushrooms, expressed concern about the potential for Korea, historically a
global producer and exporter of canned mushrooms and already well established in the
growing, canning, and exporting of mushrooms, to ship large amounts of canned mushrooms
into the U.S. market in both the near term and well into the future. AMI also expressed
concern about the effectiveness of regulations preventing transshipments of canned
mushrooms from China through Korea. 195
In its report on the FTA, the ATAC for Trade in Fruits and Vegetables stated that the
negotiated agreement would generally be positive for the U.S. vegetable sector. 196 The report
noted that Korea is already a net food importer and likely will grow even more dependent
on food products imported from the United States in the future. The report also said that the
FTA should place U.S. vegetable producers in a better position to benefit from agreed-upon
189 U.S. industry official, telephone interview by Commission staff, May 24, 2007.
190 California Tomato Growers Assoc., written submission to the USITC, June 25, 2007.
191 Ibid., 1–4.
192 Ringwood (counsel), “Submission to the USITC regarding the U.S.-Republic of Korea Free Trade
Agreement: Potential Economy-wide and Selected Sectoral Effects,” written submission to the USITC on
behalf of the American Dehydrated Onion and Garlic Assoc., June 19, 2007.
193 Ringwood (counsel), “Submission to the USITC regarding the U.S.-Republic of Korea Free Trade
Agreement: Potential Economy-wide and Selected Sectoral Effects,” written submission to the USITC on
behalf of the American Dehydrated Onion and Garlic Assoc., June 19, 2007.
194 U.S. industry official, telephone interview by Commission staff, May 24, 2007.
195 U.S. industry official, telephone interview by Commission staff, May 24, 2007.
196 ATAC on Trade in Fruits and Vegetables, Advisory Committee Report, April 2007, 2.
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