Preparing for FTA's

Preparing for FTA’s. I’m Greg Martin with today’s Line On Agriculture.

The Free Trade Agreement with South Korea will be implemented on March 15th and will provide good opportunities for American farmers. That is a good thing but there is also a downside and Berry Bedwell of the California Grape and Tree Fruit League says growers will have to educate themselves on the myriad of issues that come with exporting to foreign markets.??

BEDWELL: You have to really astute and understand what it takes to develop not only domestic markets but the international markets as well. It’s not an easy job. You really have to work at it and understand in a very complex world these are going to be the requirements for success.??

Bedwell says issues like phyto-sanitary requirements and maximum residue levels will become second nature to U.S. farmers. Kevin Kester heads the California Cattlemen’s Association and is thinking about the economic advantage the FTA will bring.??

KESTER: It’s going to make U.S. beef 2.75% ahead in tariffs over the Australians whoch are our main competitors in South Korea. That’s huge over the next 15 years to have that advantage.

A key member of the U.S. Trade Office's implementation team is Brian Grunenfelder. He's a Deputy Assistant Trade Representative for Agriculture and believes the deals with South Korea and Colombia will both provide good opportunities to American farmers.??

GRUNENFELDER: These are already very, very good markets for us, particularly Korea. It’s our fifth largest market already but there is tremendous potential for further growth. Columbia is also a very important market and frankly it was one where we were seeing some slippage as Columbia’s agreement with other countries took affect, we were starting to see some of our marketshare erode, frankly.??

Grunenfelder says this agreement will allow the U.S. to strengthen its position in the market and regain some of that lost share. Again the agreement takes effect on March 15th and on that date - almost two-thirds of American farm exports to South Korea will become duty-free - including wheat, corn, soybeans and cotton. Tariffs on U.S. beef shipments will be phased out over 15-years.?
That’s today’s Line On Agriculture. I’m Greg Martin on the Ag Information Network.