The U.S.-Korea Free Trade Agreement (KORUS FTA) will provide America’s farmers, ranchers, food processors, and the businesses they support with improved access to the Republic of Korea’s 49 million consumers. If approved by Congress, this would be the most economically significant trade agreement for the U.S. agricultural sector in 15 years.

Under this agreement, more than 60 percent of U.S. agricultural exports will become duty free immediately. Lower tariffs benefit both U.S. suppliers and Korea’s consumers. The KORUS FTA will help the United States compete against Korea’s other major agriculture suppliers and help keep the United States on a level playing field with Korea’s current free trade partners, such as Chile, and any future FTA partners.

This fact sheet contains information about a range of vegetables and related products (with the exception of potatoes, which are in a separate fact sheet). Additionally, a summary chart of tariff reductions for these products is included.

The current 30-percent tariff on frozen sweet corn will be eliminated within 5 years.

Korea is the fourth largest import market for U.S. frozen sweet corn. From 2004 through 2006, U.S. suppliers shipped on average 1,700 tons a year of frozen sweet corn to Korea valued at $691,000. The U.S. share of Korea’s growing import market averaged 28 percent and has increased over the past several years. The United States is Korea’s largest supplier, but faces strong competition from China.

Although U.S. frozen sweet corn is currently subject to a 30-percent tariff, Korea’s WTO bound duty is 54 percent. Under the FTA, Korea will not be able to increase the tariff for U.S. imports from the current levels up to the WTO-bound level.

Fresh asparagus will be duty free upon implementation of the agreement. The 30-percent tariff on fresh carrots will be phased out in 5 years.

For onions, the KORUS FTA establishes a 2,904-ton safeguard in year 1 that increases to 5,808 tons in year 16, subject to a 50-percent duty. Quantities over the quota amount are initially subject to an over-safeguard duty of 135 percent that expires in year 19, and at that time, all quantities enter duty free.

Korea is the 13th largest market for U.S. asparagus and the United States is the fifth largest supplier to Korea with a 12-percent average market share during 2004-2006. During that period, the United States shipped an annual average of 188 tons valued at $1 million. Korea is the seventh largest market for U.S. onions. From 2004 through 2006, U.S. suppliers shipped on average 4,605 tons a year of onions to Korea valued at $2 million. Korea imports onions in years when the domestic industry cannot meet demand. So, imports vary widely from year-to-year depending upon the local crop.

U.S. asparagus is subject to a 27-percent tariff and carrots are subject to a 30-percent tariff. Imports of onions are subject to a global WTO TRQ of 20,645 tons at an applied duty of 50 percent and a 135-percent out-of-quota (bound) duty.

The 45-percent tariff on fresh lettuce will be eliminated in 10 years. The FTA should help U.S. producers maintain their position as the top supplier of lettuce to Korea.

Korea is the seventh largest market for U.S. lettuce. From 2004 through 2006, U.S. suppliers shipped an annual average of 997 tons of lettuce to Korea valued at $839,000. The U.S. share of Korea’s growing import market for lettuce averaged 55 percent, and it has increased sharply over the past several years. U.S. lettuce faces strong competition from China, which also supplies about half of the import market.

U.S. lettuce is subject to a 45-percent applied duty.

The KORUS FTA will lock in the duty-free access being enjoyed by U.S. feed-use pea exporters. The 27-percent tariff on seed peas will be phased out over 5 years. For all other peas, except those for feed use, the tariff will be phased out over 10 years.

The Trade Situation…

From 2004 through 2006, U.S. suppliers shipped an annual average of 5,000 tons of dry peas valued at $1.5 million. The U.S. share of Korea’s import market is 85 percent and has remained largely unchanged. The FTA should keep the United States on top in this competitive market.

The Current Market Access Situation…

U.S. dry peas enter Korea duty free under an autonomous TRQ of 450,000 tons. The out-of quota tariff is 27 percent. U.S. fresh and frozen peas trade under a 27-percent tariff. U.S. prepared or preserved peas trade under a 20-percent tariff.

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