New figures show positive impact of US-Korea FTA on animal product sales

Legislation | | MIC Customs Solutions |

US animal product sales to South Korea have risen since the introduction of a free trade agreement four years ago.

The introduction of a bilateral free trade agreement (FTA) between the US and South Korea has had a positive impact on the sale of US animal products in the Asian nation.

Figures from the Korea Rural Economic Institute have shown that imports of animal products from America were worth $1.76 billion (£1.25 billion) as of 2015, according to data from the Korea Rural Economic Institute.

This is more than double the $823 million annual average seen between 2007 and 2011, demonstrating the positive impact of the FTA between the two nations, which came into force in March 2012.

Tariff reductions, falling domestic production and rising demand were all cited as key reasons for this increase, with Korean imports of US powdered milk increasing tenfold, cheese purchases rising by a factor of five, and the value of beef shipments rising despite the impact of a mad cow disease scare in 2012.

Poultry was the only exception out of the product categories assessed, and this was attributed to a block on imports from the US until November last year due to an outbreak of avian influenza.