U.S.-KOREA TRADE AGREEMENT: Maryland Farmers Will Benefit

The U.S.-Korea Trade Agreement, known as the KORUS agreement, will immediately eliminate duties on nearly two-thirds of current U.S. agricultural exports to Korea and gives U.S. exporters improved access to the Korean market for many products that have been highly protected. The U.S. International Trade Commission estimates that annual U.S. agricultural exports to Korea will increase by a minimum of $1.9 billion upon full implementation of the agreement. Korea’s tariffs of 18-27 percent on frozen leg quarters, frozen breasts and wings, and frozen turkey cuts, will be phased out in 7-12 years.  

Dairy Products

Duty-free tariff-rate quotas (TRQ) will be established for cheese, skim/whole milk powder, food whey, and butter.

Feed Grains

U.S. exports of corn for feed will be duty-free immediately. Korea is currently the third largest market for U.S. corn for feed.

Soybeans and Products

The greatest potential benefit for the soybean sector is likely to come from improved access to Korea’s 300,000-metric ton market for food-quality soybeans. Korea has agreed to immediately eliminate its 5-percent applied tariff on food-use soybeans. In addition, Korea will establish a duty-free TRQ starting at 10,000 metric tons for identity-preserved soybeans for food use. This TRQ will operate outside the current state trading entity, which has charged a reported $250 per ton markup on soybean imports supplied to soybean curd processors.