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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.
Frozen Sweet Corn
With the Agreement…
The current 30-percent tariff on frozen sweet corn will be eliminated within
5 years.
The Trade Situation…
Korea is an important import market for U.S. frozen sweet corn. From 2006
through 2008, U.S. suppliers shipped on average 400 tons a year of frozen sweet
corn to Korea valued at $445,000. The U.S. share of Korea’s growing import
market averaged 72 percent and has increased over the past several years. The
United States is Korea’s largest supplier, but faces strong competition from
China.
The Current Market Access Situation…
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.
Asparagus, Carrots, and Onions
With the Agreement…
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.
The Trade Situation…
Korea is an important market for U.S. asparagus and the United States is the
fourth largest supplier to Korea with a 8-percent average market share during
2006-2008. During that period, the United States shipped an annual average of 7
tons valued at $36,000. Korea is also an important market for U.S. onions. From
2006 through 2008, U.S. suppliers shipped on average 33 tons a year of onions to
Korea valued at $38,000. 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.
The Current Market Access Situation…
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.
Lettuce
With the Agreement…
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.
The Trade Situation…
Korea is the fifth largest market for U.S. lettuce. From 2006 through 2008,
U.S. suppliers shipped an annual average of 1,408 tons of lettuce to Korea
valued at $1.7 million. The U.S. share of Korea’s growing import market for
lettuce dropped to 24 percent in 2008, as U.S. lettuce faces strong competition
from China. China supplied 76 percent of the import market in 2008.
The Current Market Access Situation…
U.S. lettuce is subject to a 45-percent applied duty.
Peas
With the Agreement…
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 2006 through 2008, U.S. suppliers shipped an annual average of 4,700
tons of dry peas valued at $1.6 million. The U.S. share of Korea’s import market
has averaged 83 percent and has fluctuated in recent years with the competition
emerging from Canada. 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.
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its
programs and activities on the basis of race, color, national origin, gender,
religion, age, disability, political beliefs, sexual orientation, and marital or
family status. (Not all prohibited bases apply to all programs.) Persons with
disabilities who require alternative means for communication of program
information (Braille, large print, audiotape, etc.) should contact USDA
’s
TARGET Center at (202) 720-2600 (voice and TDD).
To file a complaint of discrimination, write USDA, Director, Office of Civil
Rights, Room 326-W, Whitten Building, 1400 Independence Avenue SW, Washington,
DC 20250-9410, or call (202) 720-5964 (voice and TDD). USDA is an equal
opportunity provider and employer.
Selected Vegetable Tariff and Trade Data
| Cabbage |
27% |
Immediate |
0 |
$0 |
< 1% |
| Cucumbers |
27% |
Immediate |
0 |
$0 |
< 1% |
| Fresh Asparagus |
27% |
Immediate |
18 |
$0.11 |
8% |
| Celery |
27% |
Immediate |
22 |
$0.02 |
28% |
| Fresh or Chilled Chicory |
8% |
Immediate |
59 |
$0.27 |
71% |
| Prepared or Preserved
Tomatoes |
8% |
Immediate |
3,638 |
$2.80 |
43% |
| Potato - Fresh Tablestock |
30% or 304% |
Duty-free Quota |
6,248
(2007 only) |
$2.97 |
100% |
| Potato - Fresh Chipstock |
30% or 304% |
Immediate (Dec.-Apr) |
7,386 |
$3.29 |
47% |
| Carrots |
30% |
5 |
78 |
$0.16 |
< 1% |
| Dried Mushrooms |
27%-45% |
5-12 |
3 |
$0.06 |
< 1% |
| Frozen Sweet Corn |
30% |
5 |
210 |
$0.29 |
72% |
Prepared or Preserved
Sweet Corn |
30% |
5 |
19,424 |
$24.27 |
51% |
| Cauliflower/Broccoli |
27% |
5 |
27 |
$0.12 |
< 1% |
| Cabbage, Chinese |
27% |
5 |
0 |
$0 |
< 1% |
| Fresh & Frozen Peas |
27% |
5 |
80 |
$0.11 |
92% (fresh), 53% (frozen) |
| Potatoes – Frozen Fries |
18% |
5 |
29,985 |
$30.25 |
79% |
| Dried Peas (not for seed) |
0% or 27% |
10 |
2,831 |
$1.14 |
85% |
| Cabbage Lettuce |
45% |
10 |
482 |
$0.51 |
23% |
| Other Lettuce |
45% |
10 |
1,095 |
$0.93 |
49% |
| Kidney Beans (not for
seed) |
27% |
10 |
1,590 |
$0.66 |
10% |
| Prepared or Preserved
Asparagus |
20% |
10 |
8 |
$0.03 |
28% |
| Garlic |
360% or 50% |
19 |
4 |
$0.02 |
< 1% |
| Onions |
135% or 50% |
19 |
1,087 |
$0.78 |
3% |