Feb 28, 2012U.S.-South Korea FTA
The Office of the U.S. Trade Representative announced that the free trade agreement (FTA) between South Korea and the U.S. takes effect March 15. Some of South Korea’s existing tariffs on U.S. potato product exports were eliminated at that time, including the 18 percent tariff on frozen French fries.
The FTA will result in elimination of tariffs on U.S. dehy products over 11 years.
Tariffs on fresh potatoes for chipping will be eliminated immediately during the Korean off-season and followed by phased-in duty-free access in 15 years.
Tariffs on table stock potatoes will not be eliminated. However, a duty-free quota of 3,000 metric tons will increase by 3 percent each year.
South Korea is the fourth-largest frozen potato export market for the U.S. In 2010, U.S. potato growers exported $47 million in product to South Korea, an increase of 29 percent over 2009.
