USCA Statement on New KORUS and U.S.-Japan Agreement
September 28, 2018
States-Republic of Korea Free Trade Agreement (KORUS). The duty rate on U.S. beef has been reduced to 21.3 percent from 40 percent, and will continue to decline each year until it is eliminated by 2026.
On Wednesday, President Trump and Japanese Prime Minister Shinzo Abe released a joint statement affirming the "importance of a strong, stable, and mutually beneficial trade and economic relationship between the United States and Japan" and "recognizing that our economies together represent approximately 30 percent of global Gross Domestic Product."
United States Cattlemen's Association (USCA) President Kenny Graner issued the following statement:
"U.S. cattle producers sent $7.27 billion of beef to South Korea in 2017, making the United States the largest supplier of beef for the country. The revised KORUS trade agreement, with a reduced and eventually eliminated tariff schedule for beef, represents the Administration's dedication to securing fair trade agreements that put domestic producers first."
"Expanding market opportunities for U.S. beef exports to large consuming countries like Japan and Korea is an important objective for U.S. producers. With the U.S. withdrawal from the Trans-Pacific Partnership (TPP) last year, there has been concern that U.S. beef would lose market share to one of our most important export markets – Japan. The joint statement indicating an intent of the U.S. and Japan to enter into negotiations holds the hope that U.S. producers will quickly be back on par with other major beef exporting countries who remained in the TPP. We are greatly encouraged by these recent actions and look forward to addressing our trade agreements with other countries with the same vigor."