President Obama signed free trade agreements with South Korea, Colombia and Panama on Oct. 21.
“We’re pleased that the administration recognized the extreme importance of these trade agreements to the U.S. economy,” says Connie Tipton, president and CEO of the International Dairy Foods Association, Washington, D.C. “The pact with South Korea is particularly important because it would reduce tariffs and expand market opportunities in a high-value market and add 10,000 or more additional U.S. jobs throughout the dairy supply chain.”
South Korea is now the U.S. dairy industry’s sixth largest export market, representing $145 million in exports year to date. That figure is nearly double the value of exports during the same time period last year. According to U.S. International Trade Commission estimates, full implementation of the agreement with South Korea would increase U.S. dairy exports by as much as $336 million a year.
The Panama and Colombia agreements are also strong, with each expected to produce gains of an additional $25 million in exports per year.
Supply control programs could derail anticipated trade gains
IDFA warns legislators to steer clear of proposed U.S. dairy policies that could negate the growth opportunities awaiting the dairy industry.