Fish and Fish Products Sector

An Expert's View about Agriculture and Animal Husbandry in South Korea

Posted on: 11 Jun 2012

Korea is the 5th largest market for U.S. fish and fish products exports.

U.S. Department of Commerce International Trade Administration The U.S.-Korea Trade Agreement: Opportunities for the U.S. Fish and Fish Products Sector The U.S.-Korea Trade Agreement would provide signicant commercial opportunities for U.S. exporters: • Korea is the 5th largest market for U.S. sh and sh products exports; failure to pass the U.S.-Korea Trade Agree- ment could enable exporters from the EU and other countries to gain key advantages over U.S. exporters to Korea. • More than 40 percent of U.S. sh and sh product exports to Korea by value would receive duty-free treatment within 3 years of implementation of the U.S.-Korea Trade Agreement, including elimination of the 10 percent tari on pollock surimi. • Korean sh taris currently average 17.2 percent, ranging up to 63 percent. Fish and Fish Products Sector Overview U.S. Fish and Fish Products Exports to • The sh and sh products sector accounted for $129 million in Korea Averaged $129 Million 1 U.S. exports to Korea over 2008-10 (average). $140 • Top U.S. sh and sh products exports to Korea include frozen pollock, cod, monksh, hagsh, and skate. $135 • The U.S. commercial shing sector harvested over $4.4 billion $130 2 worth of sh and shellsh in 2008. $125 • The U.S. commercial shing, seafood processing, retailing, and $120 wholesaling industries employed approximately 370 thousand in $115 3 2008. $110 2008 2009 2010 Improved Market Access for U.S. Fish and Fish More than 40% of U.S. Fish and Fish Products Exporters to Korea Products Exports to Korea Would be • Korean sh and sh products taris average 17.2 percent, rang- Duty-Free Within Three Years ing from 3 percent to 63 percent. 2% 4 • Nearly 2 percent of U.S. sh and sh products exports to Korea Immediate would receive duty-free treatment immediately upon imple- 3 Y e ars mentation of the trade agreement. 38% 38% 5 Y e ars • Taris on an additional 38 percent of sh and sh products ex- 10+ Y e ars ports to Korea would be eliminated over three years, including the 10 percent tari on pollock surimi, by far the most impor- 22% tant U.S. sh export to Korea. 1 Global Trade Atlas. Calculations by the U.S. Department of Commerce based on import data as reported by Korea. The denition for sh and sh products used in this report, unless otherwise cited, is based on Harmonized System (HS) Chapter 3 and selected products within Chapters 5, 16, and 23. 2 U.S. Department of Commerce, National Oceanic and Atmospheric Administration, Fisheries Economics of the United States 2008. 3 U.S. Department of Commerce, National Oceanic and Atmospheric Administration, Fisheries Economics of the United States 2008. 4 Data based on three-year average for 2008-2010. April 2011 Additional information available at: www.trade.gov/KORUS in Millions USD • Taris on a further 22 percent of sh and sh products exports to Korea would be eliminated over ve years. Tar- is on the remaining 38 percent of U.S. sh and sh products exports to Korea would be eliminated in equal cuts over ten years or non-equal cuts over ten, twelve, or fteen years. • Additionally, tari rate quotas (TRQs) are being established for some product forms of croaker, Alaska Pollock, and some atsh; these will immediately provide duty-free access for specied quantities of U.S. exports which will in- crease annually. Taris on these products are currently set at 63 percent, 30 percent, and 10 percent respectively. Foreign Competition in the Korean Market • Korea signed a trade agreement with the EU in 2009, which is scheduled to enter into force in July 2011. It also recently signed an FTA with Peru, which is also scheduled to enter into force this year. Korea presently has FTAs in force with ASEAN, Chile, India, Singapore, and EFTA. In addition, Korea is negotiat- ing new agreements with Australia, Canada, Colombia, New Zealand, and Turkey; is considering launching FTA negotiations with China; and is exploring re-launching its stalled negotia- tions with Japan. • EU sh and sh products exporters will immediately enjoy an average tari of 12 percent upon entry into force of the EU- Korea FTA, while U.S. exporters will face an average most favored 5 nation (MFN) tari of 17.2 percent until entry into force of the U.S.-Korea Trade Agreement. Key States Exporting to Korea • Top U.S. states exporting sh and sh products to Korea include: Alaska, Massachusetts, Washington, California, New York, New Jersey, Maine, Oregon, Virginia, Florida, Louisiana, and Hawaii. Other Key U.S.-Korea Trade Agreement Commitments for the Fish and Fish Products Sector • Rules of Origin: The U.S.-Korea Trade Agreement rules of origin allow only products that are produced in the United States and Korea to receive preferences under the Agreement. The trade agreement rules of origin provide clear requirements for a good to be considered originating, including that a good must be wholly obtained or produced entirely in the territory of the United States or Korea as well as requirements on materials that are used in the production of the good. Importers may claim preferences under the trade agreement based on a certication by the importer, exporter, or producer or based on the importer’s knowledge that the good is originating, but certications need not be in a prescribed format. • Technical Barriers to Trade: The U.S.-Korea Trade Agreement strengthens disciplines to promote transparency in the way governments develop and apply technical regulations and related conformity assessment procedures (e.g., testing and certication). For example, Korea agreed to provide national treatment, or the same treatment applied to Koreans, to U.S. persons for participation in the development of standards, technical regulations, and conformity assessment procedures; and to accreditation, licensing or approval of U.S. conformity assessment bodies. 5 U.S. Department of Commerce calculations based on EU-Korea FTA and U.S.-Korea Trade Agreement tari commitments. April 2011 Additional information available at: www.trade.gov/KORUS U.S. Department of Commerce International Trade Administration The International Trade Administration - Your Global Business Partner The International Trade Administration (ITA) – a division of the U.S. Department of Commerce – strengthens the competitiveness of U.S. industry, promotes trade and investment, and ensures fair trade through the rigorous enforcement of our trade laws and agreements. ITA also utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. For more information on exporting to Korea, please contact: • The ITA office of the U.S. Embassy in Korea at office.seoul@trade.gov or 82-2-397-4535, or by visiting our website www.export.gov/southkorea. • The ITA trade specialist in the U.S. nearest you by visiting www.export.gov/eac. For more information on the U.S.- Korea Trade Agreement, please visit www.export.gov/fta/korea and www.trade.gov/fta/korea. For more information on industry-specific issues, please visit www.trade.gov/mas/index.asp.
Posted: 11 June 2012

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