KORUS immediately eliminated duties on nearly two-thirds of U.S. agricultural exports to South Korea, and many more were phased out.
The eyes of the world are on South Korea this week as the greatest athletes in winter sports compete for gold. But there are many more reasons beyond their love of figure skating, curling and skiing that American farmers are paying close attention to South Korea.
With 51 million citizens, South Korea is the 27th most populous country in the world, larger than Spain, Argentina and Canada. Its growing middle class has been increasing purchases from the United States. The U.S. is now the country’s top agricultural supplier, providing 28 percent of incoming products. Much of this growth has been linked to implementation of the Korea-US Free Trade Agreement (KORUS) that went into effect in 2012.
This agreement is one of the newest free trade agreements in place between the U.S. and a bilateral partner, but it has drawn significant criticism from President Trump, who has characterized it as “a horrible deal.”
After six months of saber-rattling and threatening to pull out of KORUS altogether, in October the Trump administration and South Korean government agreed to renegotiate portions of KORUS. Initial signals from the Trump administration indicate that this will not be a full renegotiation, but rather a less-complicated amendment to the original agreement. Hopefully this stays true for agriculture, as American farmers and ranchers gained significant access to the Korean market with the KORUS agreement.
KORUS immediately eliminated duties on nearly two-thirds of U.S. agricultural exports to South Korea, and many more were phased out. This caused U.S. prepared food exports to South Korea to jump 57 percent over the next four years, reaching $423 million in 2016. Beef imports have increased 82 percent, making South Korea the number two importer of U.S. beef products, behind Japan.
No trade deal is perfect, and we can make gains in a renegotiation. Agriculture has done well under KORUS and President Trump should take care to only make changes to make the deal even better for our farmers and ranchers.