Tuesday, October 25, 2011

US trade agreements to generate $1.4 billion for poultry industry

The three U.S. free trade agreements with South Korea, Colombia and Panama, signed into law on October 21, will generate an estimated $1.4 billion in additional U.S. poultry and egg export sales annually, according to poultry and egg producers, processors and exporters supporting the legislation.
The U.S.-Korea Free Trade Agreement will greatly improve market access for U.S. poultry and egg exports to South Korea, mostly by duty reduction and elimination, according to the industry. In 2010, U.S. poultry product exports to Korea totaled $101 million. With KORUS FTA approval, U.S. poultry meat exports to Korea could rise to more than $150 million or 125,000 tons annually, with annual egg exports tripling to $12 million. Over the first 10 years of the agreement, this is expected to generate $720 million in exports.
The U.S.-Colombia FTA will cut duties, eliminate variable duties and would give the U.S. a 27,040-metric-ton tariff rate quota at zero duty with 4% annual growth for chicken leg quarters. U.S. exports to Colombia are expected to rise from $22 million of poultry and products to $42 million by 2015. As duties come down over the FTA’s implementation period, annual exports are expected to exceed 180,000 metric tons by 2020, which is worth $135 million. Over 10 years, the U.S.-Colombia FTA is expected to generate $660 million in new U.S. exports.
The U.S.-Panama FTA will eliminate duties on some poultry products within five years and establishes a preferential duty-free tariff rate quota for chicken leg quarters that starts at 660 tons and grows each year by a 10% compound rate. Trade to this market is expected to grow steadily from $19 million in 2010 to $32.6 million by 2020 — for a total of $70 million in new trade over the next decade. 

No comments:

Post a Comment