U.S.-Korea Trade Pact Set To Take Effect

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U.S. Trade Representative Ron Kirk announced Tuesday that the U.S.-Korea trade agreement will take effect March 15. Over the President’s Day, weekend representatives of the two countries finished a review of each other’s laws and regulations related to the implementation of the agreement. The U.S. has exchanged diplomatic notes with Korea in which each side confirmed that they had completed their applicable legal requirements and procedures for the agreement’s entry into force.

“In a few short weeks, the promise of the U.S.-Korea trade agreement — including tens of thousands of export-supported jobs with better wages — will start to come home for American businesses and working families,” said Kirk. ”President Obama insisted that we get this agreement right by forging a better deal that led to strong bipartisan support in both houses of Congress. Entry into force of this agreement will open up Korea’s $1 trillion economy for America’s workers, businesses, farmers, and ranchers while also strengthening our economic partnership with a key Asia-Pacific ally.”

On March 15, almost two-thirds of U.S. exports of agricultural products to Korea will become duty-free, including wheat, corn, soybeans for crushing, cotton, cherries, pistachios, almonds, orange juice, grape juice, and wine.

Also on March 15, almost 80% of U.S. exports of industrial products to Korea will become duty-free, including aerospace equipment, agricultural equipment, auto parts, building products, chemicals, consumer goods, electrical equipment, environmental goods, all footwear and travel goods, paper products, scientific equipment, and shipping and transportation equipment.

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The agreement will especially benefit growers in the western U.S., who either produce virtually all or at least the lion’s share of sweet cherries, almonds, pistachios, and winegrapes. Other fresh produce commodities affected include eggplant, celery, cucumbers, and spinach, noted Western Growers president and CEO Tom Nassif.

“In some cases, our members were facing tariffs upwards of 30% on a number of commodities we grow and ship to South Korea. The U.S.-Korea free trade agreement represents a welcome opportunity for members of the specialty crop industry in California and Arizona,” said Nassif. “Western Growers congratulates U.S. Trade Representative Ron Kirk on this positive step forward for U.S. agricultural exports.”

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