Source: Rita Jane Gabbett, MEATINGPLACE, 7/28/17


Earlier this month, President Donald Trump directed U.S. Trade Representative Robert Lighthizer to formally notify South Korea that the United States is calling a special joint committee meeting under the U.S.-Korea Free Trade Agreement (KORUS) to re-negotiate parts of the pact.

He did. And the meat industry is nervous about it.

“President Trump continues to keep his promises to lower our trade deficit and negotiate better trade deals for American workers, farmers, ranchers and businesses,” Lighthizer said in a statement. “Since KORUS went into effect, our trade deficit in goods with Korea has doubled from $13.2 billion to $27.6 billion, while U.S. goods exports have actually gone down.”
The meeting is to take place in Washington, D.C., on a date in August to be agreed upon.

Beef industry concerned
Three U.S. meat industry groups this week sent letters to Lighthizer and Agriculture Secretary Sonny Perdue urging the Trump administration not to jeopardize access to the industry’s second-largest export market.

The CEOs of the National Cattlemen’s Beef Association, the North American Meat Institute and the U.S. Meat Export Federation sent the letters to highlight the success the U.S. beef industry has experienced with its exports to South Korea since KORUS began. 

“Simply put, KORUS created the ideal environment for the U.S. beef industry to thrive in South Korea," the letter said. "We would not support any changes in the terms of the KORUS that would jeopardize either our market share or the significant investment that has been made in rebuilding Korean consumer confidence in the safety, quality and consistency of U.S. beef.”

The groups noted that under KORUS, the U.S. beef industry has seen an 82 percent increase in annual sales to South Korea, from $582 million in 2012 to $1.06 billion in 2016, making South Korea the second-largest export market for U.S. beef.

Many cuts like short ribs and chuck rolls receive a significant premium in South Korea over prices in the U.S. market. KORUS also established strong science-based trade measures and a schedule for the elimination of South Korea’s 40 percent tariff on U.S. beef -- terms that have allowed the U.S. beef industry to be very competitive in South Korea, the letter pointed out.

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