KORUS-FTA facilitates export of US potato products to South Korea

On March 15, 2012 the Korea-U.S. Free Trade Agreement (KORUS-FTA) went into force.

John Keeling, Executive Vice President and CEO of the National Potato Council (NPC), commented on the impact of this free trade agreement on the US potato Industry:

“America’s potato growers applaud the implementation of this historic free trade agreement and congratulate the Office of the United States Trade Representative (USTR) and the U.S. Department of Agriculture (USDA) and its Foreign Agricultural Service (FAS) for getting the KORUS-FTA over the goal line.”

“As a result of their years of effort and the support they received from the U.S. potato industry, frozen potato products exported to Korea are now duty-free, representing a potential increase of $35 million in U.S. potato exports. America’s potato growers look forward to continuing to supply Korean consumers with the highest quality potato products in the world, now on a competitive playing field.”

South Korea is the fourth largest frozen potato export market for the United States. In 2010, U.S. potato growers exported $47 million worth of product to South Korea, an increase of 29 percent over 2009. The United States enjoys an 81 percent market share in the South Korean frozen fry market. Overall, South Korea is the fifth largest export market for U.S. potatoes behind Canada, Japan, Mexico, and China.

The United States and the Republic of Korea signed the United States-Korea Free Trade Agreement (KORUS FTA) on June 30, 2007. On December 3, 2010, the United States and Korea concluded new agreements, reflected in letters signed on February 10, 2011, that provide new market access and level the playing field for U.S. auto manufacturers and workers.

 Congress approved the agreement on October 12, 2011, and Korea’s National Assembly approved it on November 22, 2011. The United States and Korea completed their review of the measures both sides had taken to implement the FTA and exchanged diplomatic notes on February 21 agreeing to bring the agreement into force on March 15, 2012.

The Agreement is considered the United States' most commercially significant free trade agreement in almost two decades.

Source: National Potato Council/Office of the United States Trade Representative