South Korean trade officials warn if the U.S. fails to ratify pending free agreements it's negotiated with their nation it risks being shut out of that market within ten years.
The Republic of Korea has free trade agreements in place with India, Chile, Singapore, the European free trade area and ten southeast Asian countries.
Agreements that have been negotiated with the United States and the European Union are awaiting ratification and negotiations are underway with eight other nations including Canada.
Jong hyun Choi, Korea's economic and trade minister at the Korean Embassy in Washington, D.C., told those on hand yesterday for World Pork Expo last year the United States was Korea's largest supplier of pork, followed by Chile in 2nd and Canada in 3rd.
Jong hyun Choi-Republic of Korea:
Korea is quite much heavily dependent on international trade for its economic growth.
Actually more than 70 percent of the Korean economy is dependent on international trade.
That's why we have been pursuing a series of free trade agreements with key trading partners including the United States, the European Union and Canada and Asian member countries.
The free trade agreement is all about the elimination of tariffs which are stumbling blocks for the freer flow of goods and services between countries in the international community.
These free trade agreements will be tremendously beneficial for the Korean producers to get their leg up in their market access in the international markets.
Under terms of the pending deal with the U.S. a 25 percent tariff on frozen pork will be eliminated January 1, 2014 and a 22.5 percent tariff on fresh and chilled pork will be phased out over ten years.
Choi says if the U.S. fails to ratify the deal it'll be unable to compete with countries that enjoy tariff free status.
By Bruce Cochrane