International Egg and Poultry Review

SOUTH KOREA - By the USDA's Agricultural Marketing Service (AMS). This is a weekly report looking at international developments concerning the poultry industry. This week's report covers Korea's free trade agreements with the United States and the European Union.

12 August 2009

4 minute read

US – Korea Free Trade Agreement

The United States and the Republic of Korea signed a bilateral free trade agreement on 30 June 2007. Korea is a $1 trillion economy and is the United States’ seventh largest trading partner. In 2008, US goods exports to Korea were $34.8 billion. If approved, the Agreement would be the United States’ most commercially significant free trade agreement in more than 16 years. This is the first US FTA with a North Asian partner and could be a model for trade agreements in the rest of the region. The Agreement is currently pending Congressional approval.

Under free trade agreement almost two-thirds ($1.6 billion) of current US farm exports will become duty-free immediately. Other farm products will benefit from expanded market opportunities with tariff phase-outs or through tariff rate quotas.

Source: Office of the US Trade Representative; USDA Foreign Agricultural Service;

EU – Korea Free Trade Agreement

The EU and South Korea launched negotiations for an EU-Korea free trade agreement in May 2007. South Korea is the EU’s eighth largest trade partner and the EU has become South Korea’s second largest export destination. In 2008 EU goods exports to South Korea totaled €25.6 billion; EU imports from South Korea totaled €39.4 billion.

The EU and South Korea already have a Framework Agreement on Trade and Co-operation, which has been in force since April 2001, aimed at fostering growth of two way trade and investment. An Agreement on Co-operation and Mutual Administrative Assistance in Customs Matters has been in force since 1997.

In July 2009, the two countries concluded negotiation for the free trade agreement. The EU and South Korea will meet to clarify the technical language and the next step will be a legal review. The agreement requires legislative approvals by both sides and is expected to go into effect sometime in 2010.

In 2007, imports of agricultural products from South Korea ranked 79, valued at €134 million and accounted for 0.3 per cent of total agricultural product imports. European exports to South Korea ranks 16, valued at €1,222 million and 4.9 per cent of total agricultural exports.

Source: EU Trade News Weekly Digest 31 July 2009; European Commission Trade Issues; news wires

Source: USDA/Foreign Agricultural Service Attaché Report; World Trade Atlas, using official Korean import statistics.
Includes fresh, chilled, and frozen products (HS 0207), which may be subject to an import ban because of
avian influenza, and prepared meat (HS 16023, 160232, and 160239), which is not banned.