Amid reports that the Trump administration was considering withdrawing from a trade agreement with South Korea, U.S. Sens. Joni Ernst (R-IA), Deb Fischer (R-NE) and U.S. Rep. Pat Tiberi (R-OH) highlighted the trade deal’s importance to U.S. farmers.
The U.S.-Korea Free Trade Agreement (KORUS) was reached in 2007 and went into effect five years later. The Republican leaders expressed concern that scrapping the trade deal would negatively impact the nation’s economy.
In a letter to the president, Ernst noted that South Korea has since become a top U.S. trade partner, with $144 billion in total goods and services transferred between the countries in 2016 alone.
“Over its relatively short life span, KORUS has been particularly favorable for American agriculture, an area in which we enjoy a large trade surplus,” Ernst, a member of the Senate Agriculture, Nutrition, and Forestry Committee, wrote. “Our ag exports to Korea totaled $6.2 billion in 2016, compared to the $519 million in ag products they sent to us. Korea is our fifth largest agricultural export market, and is particularly important for our beef, corn and pork producers.”
U.S. farmers would be at a competitive disadvantage if KORUS is terminated, Ernst continued. Farmers would lose market share and their profitability would be impacted during a period of already historically low commodity prices.
In voicing her support for KORUS, Fischer noted in a letter to the president that the Nebraska trade market in South Korea totals $393 million. Major South Korean markets for exports like pork, corn, ethanol, beef and wheat would be impacted by the termination of KORUS.
“With over 95 percent of the world’s population living outside the borders of the United States, KORUS, and other similar free trade agreements, provide the best means to increase exponentially the demand for high-quality American agricultural products,” Fischer wrote.
Fischer, a member of the Senate Armed Services Committee, also noted that North Korea’s “belligerent behavior” has given rise to increased tensions on the Korean Peninsula. Withdrawing from KORUS could undermine steps taken by the Trump administration to signal commitment to the Republic of Korea’s security, Fischer warned.
Tiberi, meanwhile, said that Ohio farmers rely on strong trade agreements with South Korea, which has emerged as one of the largest markets for U.S. grain and corn exports.
“KORUS is vital to our local economy, and I urge the administration not to withdraw from the agreement,” Tiberi said. “Rather, the administration should engage in bilateral discussions to ensure KORUS is implemented fairly and continues to benefit farmers and job creators nationwide who need to reach customers abroad to keep their farms running and doors open.”