07/05/06 U.S-Korea negotiating FTA

Farm and Ranch July 5, 2006 The United States and South Korea recently began talks on a free trade agreement between the two countries. Kevin Natz, Director of Trade Policy for the U.S. Grains Council, says an FTA with South Korea would be especially beneficial for U.S. barley growers. Natz: "South Korea is a large barley market, however the U.S. has been at a disadvantage. South Korea has many impediments to barley as far as tariffs and quotas and almost an all out ban when it comes to different kinds of barley for human consumption. So through a South Korean FTA we can get preferential access and we can open and expand that market as well." Agriculture is expected to be the most difficult area of the free trade talks with South Korea. Access for the U.S. auto industry another. Within agriculture, beef and rice are two of the most troublesome areas. Sanitary and Phyto-sanitary issues another. But U.S. Agriculture Secretary Mike Johanns points out that Korea has had a good trading relationship with the U.S. Johanns: "It is a good solid economy. It is an economy that should every opportunity for growth. It is an economy that is looking to the rest of the world. No doubt about it, this is a good trading partner." The formal negotiations on an FTA with South Korea began in early June and the two sides are meeting every six to eight weeks throughout this year. The Administration would like to have something for Congress to vote on before Trade Promotion Authority expires next year. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.