Tariffs on many products, including fruit and vegetables, will be either dissolved, or reduced incrementally as of 15 March when a Free Trade Agreement (FTA) between South Korea and the US is enacted.
According to a media release from the Office of the United States Trade Representative, almost two-thirds of US agricultural exports to Korea will become duty-free.
The agreement will be of particular benefit to growers and exporters in the US state of California.
'It's probably the most important free trade agreement in the last 20 years for California agriculture,' Josh Rolph, director of national affairs for the California Farm Bureau Federation told Produce News Daily. 'We're definitely going to benefit from it.'
According to the USDA’s Foreign Agricultural Service (FAS), Korea was the leading offshore destination for US navels taking 138,600 tonnes, followed by Japan and Hong Kong with 114,500 and 95,500 tonnes respectively.
The terms of the FTA stipulate a reduction in tariffs from 50 per cent to 30 per cent for US citrus arriving between 1 March and 31 August - Korea’s so-called ‘out of season’ period. Outside of this period, however the 50 per cent tariff will remain.
According to the USDA-FAS the tariff reduction would still benefit 70 per cent of US citrus.
US grapes would benefit from a similar arrangement with a tariff reduction from 45 per cent to 24 per cent during Korea’s out of season period.
In October of last year Fruitnet filed thisin-depth reportinto how the accord might affect the US grape and citrus industries.
US Cherries will be one of the big winners come 15 March benefitting from the immediate removal of the current 24 per cent tariff.
