AMI Guest Column: American Agriculture Paying Stiff Price for Stalled AgreementsMonday, July 25, 2011
(American Meat Institute)
Four years of trade benefits for U.S. farmers, ranchers and food processors have been forfeited because of inaction on pending free trade agreements (FTAs) with Korea, Colombia and Panama, and what once were fears about inaction are now sad realties, said AMI President and CEO J. Patrick Boyle in a guest column published on The Hill blog Friday.
Boyle noted that Australia is aggressively working to beat the U.S. to the finish line and sign a FTA with Korea, ensuring that exports of Australian meat products and other agricultural goods will have immediate market-access advantage over U.S. products in the Korean market.
He also noted that the European Unionís FTA with Korea was implemented July 1, 2011, and the U.S. could be completely shut out of this pork market in 10 years if we donít act soon.
Colombia is also on the verge of implementing FTAs with Canada (set to go into effect August 15) and the European Union. Other major agricultural exporting countries, such as Argentina and Brazil, already have preferential access to that market.
Boyle said that perhaps the biggest consequence of our governmentís inaction on these FTAs is that Korea is waiting to act until our Congress approves the agreement first. In the meantime, opposition leaders in the Korean government are using the time to seek changes to the terms of the original pact, including retention of a 42 percent tariff on American beef for 10 years from ratification.
Boyle pointed to the that results of an impact study coordinated by the American Meat Institute that found that passage and full implementation of the Korean, Colombian and Panamanian FTAs would represent an additional $2.3 billion in exports and the creation of 29,524 new jobs here at home. Many of these jobs are in rural areas of the U.S. where prospects of true economic development are seldom presented. The data also reveal that passage of the agreements could increase U.S. exports of beef by $1.4 billion, pork by $772 million and poultry by $102 million.
ďBut the future for these trade deals, and their potential for job and economic growth, only diminishes as we move closer to the fall and into an election year, strife with political considerations,Ē Boyle said.
To view the column in it is entirety, go to http://thehill.com/blogs/congress-blog/foreign-policy/173039-american-agriculture-paying-stiff-price-for-stalled-trade-agreements.
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