Wisconsin manufacturers and agricultural producers have an opportunity to expand exports to Korea with duty-free access through the United States-Korea Free Trade Agreement, which will take effect March 15.
The Wisconsin Economic Development Corp. and Wisconsin Department of Agriculture, Trade and Consumer Protection said today that Wisconsin is positioned to expand exports of a variety of goods, including industrial machinery, medical equipment, electrical equipment, paper products, dairy products, feed grains, soybeans, and vegetables.
Paul Jadin, CEO of the WEDC, and Ben Brancel, secretary of the DATCP, said in a press release that Korea, which is Wisconsin’s 11th largest export destination, is an important and growing export market for Wisconsin businesses.
“With the U.S.-Korea Trade Promotion Agreement in effect, Wisconsin agricultural companies will have improved access to the Korean marketplace and better understand the entrance requirements of the country,” Brancel said. “Wisconsin’s producers and agribusinesses are positioned to meet the diverse needs of Korea’s consumers, from cranberries to beef to ginseng.”
State exports to Korea for 2011 totaled $419.6 million, a 16.48% increase over previous year. By category, Wisconsin exported $125 million in agricultural products, $101 million in industrial machinery, $84 million in medical and scientific equipment, and $47.5 million in electrical equipment.
Under the FTA, almost 80% of U.S. exports to Korea of consumer and industrial products will become duty free on March 15, and nearly 95% of bilateral trade in consumer and industrial products will become duty free over the next five years.
Most of the remaining tariffs would be eliminated within 10 years.
For agricultural products, the FTA will immediately eliminate or phase out tariffs and quotas on a broad range of products. Almost two-thirds of U.S. agricultural exports will become duty-free immediately, including exports of U.S. feed whey and U.S. corn for feed.
Congress approved the FTA in October 2011. For detailed information on the impact of the FTA on Wisconsin exports, visit http://www.wedc.org/international.
The Wisconsin International Trade Team is available to assist Wisconsin agricultural and food companies expand exports to Korea. Businesses can contact the Trade Team at 1-800-462-5237.
