The Obama Administration has completed its review of the free trade agreement between the U.S. and South Korea. The agreement will take effect on March 15, when nearly two-thirds of U.S. agricultural exports to Korea will become duty-free, including U.S. soybeans for crushing and U.S. soybean meal.

Additionally, U.S. food-grade soybean producers will have access to the South Korean market for the first time outside of the import monopoly created by the Korean State Trading Enterprise. The implementation of the agreement will also trigger the gradual elimination of tariffs on refined soybean oil over five years, and the elimination of tariffs on crude soybean oil over 10 years.

The American Soybean Association & National Corn Growers Association are among many who are excited about the agreement being implemented.

“This free trade agreement creates landmark opportunities for soybeans and other U.S. agricultural exports, including meat and poultry,” said ASA President Steve Wellman, a soybean farmer from Syracuse, Neb. “Trade agreements that significantly improve access to foreign markets for these products are a main focus of ASA’s efforts in Washington, and we appreciate the efforts of the administration, the Office of the U.S. Trade Representative, and USDA in seeing the free trade agreement with South Korea enacted next month.”

“We are very pleased to see the USTR announce movement on the U.S.-Korea FTA,” said Chad Blindauer, Chair of NCGA’s Trade Policy and Biotechnology Action Team.  “Full implementation of all three free trade agreements that were passed by Congress last October will help support thousands of jobs throughout America. Developing new markets for our country’s agricultural products is vital to producer income and also helps our sector lead the nation in economic growth and international competitiveness.”

Soybeans and soybean products are the largest U.S. export commodity, totaling nearly 1.5 billion bushels in 2011, with a value of more than $22 billion. In that same year, South Korea imported $362 million worth of soybeans and soy products from the United States, making it the eighth largest U.S. soybean export market. South Korea also purchased $1.2 billion in meat products from the United States in 2011, making it a large and growing market for U.S. meat producers.

The National Cattlemen’s Beef Association was also pleased to see the agreement go through. This is part of the statement they released:

“When the KORUS FTA is implemented, our competitive advantage will be secured. The KORUS pact will phase out tariffs on U.S. beef over the next 15 years and will make U.S. beef a more affordable and appealing choice for our valued Korean customers. This may very well be the most monumental bilateral trade pact our industry has ever witnessed. With increasing demand and tightening supplies, movement of the KORUS FTA should encourage cattlemen and women to think beyond the current prices for live cattle and think long term.”

Passage last year of the free trade agreements with Korea, Colombia and Panama represented the largest trade package since Congress passed the North American Free Trade Agreement in 1993. Statistics show full implementation of the agreements will result in an estimated $2.3 billion in additional agricultural trade in 2012 and beyond.  In addition, nearly 20,000 domestic jobs will be supported.

Source: ASA & NCGA & NCBA

Agriculture Secretary Tom Vilsack announced that government and industry leaders from the United States and China will gather in Des Moines, Iowa, on Thursday, Feb. 16, for the first U.S.-China Agricultural Symposium. Vilsack traveled to China for the second time as Agriculture Secretary in November to continue to strengthen bilateral trade relations and support the American brand of agriculture throughout the Asia Pacific region. During the visit, Vilsack and Chinese officials developed the U.S.-China Agriculture Symposium as a key forum to expand their discussions into 2012 and beyond.

“I’m honored to welcome China’s Vice President Xi Jinping and Minister of Agriculture Han Changfu to the United States, where we may continue our in-depth dialogue on issues of mutual concern,” said Vilsack. “Thanks to the productivity of American farmers, ranchers and producers, consumers in China recognize the United States as a reliable supplier of high-quality food and agricultural products. Strengthening our partnership with China’s growing market is integral to the strength of the U.S. economy in the decades ahead.”

In 2011, China moved into the top spot as the number one market for U.S. agricultural goods, purchasing $20 billion in U.S. agricultural exports. The value of U.S. farm exports to China supported more than 160,000 American jobs in 2011, on and off the farm across a variety of sectors.

Chinese officials will also visit Washington, D.C., and California as part of their trip. The symposium will focus on current and future cooperation between the two nations in areas including food safety, food security and sustainable agriculture. The event will take place at the World Food Prize Hall of Laureates in Des Moines.

“China and the United States have an opportunity and responsibility to work together to help increase the availability and use of sustainably produced food for a rapidly growing world population,” added Vilsack.

Source: USDA