Non-Passage of FTAs Not Good for Ag Industry

July 27, 2011

American Meat Institute President and CEO Patrick Boyle says four years of trade benefits for U.S. farmers, ranchers and food processors have been forfeited due to inaction on the Korea, Colombia and Panama free trade agreements. Among what Boyle considers sad realities of the inaction are a pending FTA between Korea and Australia as well as one between Colombia and Canada. Boyle says the biggest consequence of not moving forward quickly on the FTAs is that Korea is waiting to act until Congress approves the agreement. Meanwhile Korean opposition leaders are seeking changes to the original terms, including maintaining a 42-percent tariff on American beef for 10 years.

AMI conducted an impact study and found passage and full implementation of the three FTAs would represent 2.3-billion dollars more in exports and the creation of more than 29-thousand jobs in America - many of which would be in rural areas. The study also shows passage of the FTAs could increase U.S. beef exports by 1.4-billion dollars, pork exports by 772-million dollars and poultry exports by 102-million dollars. Boyle says these facts are important - but the future for the trade deals only diminishes as it comes closer to the fall and an election year. Hope lingers - though - as President Obama received a letter from 12 Senators last week urging the passage of the FTAs as soon as possible with the understanding they would support a Trade Adjustment Assistance bill.

Source:NAFB News Service

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