SOUTH KOREA   U.S. – Republic of Korea Free Trade Agreement (KORUS):  The Northwest Horticultural Council supports KORUS. On June 30, 2007 the U.S. and Republic of Korea signed a free trade agreement.  The Korea-U.S. Free Trade Agreement (KORUS, concluded April 1, 2007) will enter into effect only after legislative approval in both countries.  More information on the agreement may be found on the web at Korea-U.S. Free Trade Agreement.  Korea is slightly larger than Indiana with a population of almost 49 million.  The per capita purchasing power is estimated at $24,000 (U.S. $43,500; Japan $33,000; Taiwan $29,000).  Korea is the world’s tenth largest economy. Under the terms of the agreement Korea will immediately eliminate its 24% tariff on sweet cherries.  The 24% tariff adds about $0.75/lb to $0.90/lb to the price consumers pay for this fruit.  Last year our region exported approximately $3.4 million (95,000 20 pound equivalent cartons) of cherries to Korea .  Sales have grown 50% over the past three years and Northwest Cherry Growers see Korea as a growth market.  Korea will eliminate its 45% tariff on all apple varieties, other than Fuji , over 10 years.  Its 45% tariff on Fuji apples will be reduced to zero over 20 years.  We are currently prevented from exporting to Korea due to phytosanitary concerns.  This does not change under the FTA and it is not known when, if ever, U.S. apples might obtain commercially viable phytosanitary access to Korea . Korea will eliminate its 45% tariff on European pear varieties over 10 years.  Its 45% tariff on Asian pears will be reduced to zero over 20 years.  We are currently prevented from exporting pears to Korea due to phytosanitary concerns.  This does not change under the FTA and it is not know when, if ever, U.S. pears might obtain commercially viable phytosanitary access to Korea . Korea produces between 316,000 and 450,000 metric tons of Asian pears (16 to 22 million cartons – 44 pound equivalent).  Over the past five years the U.S. has imported between $15 million to $21 million (5,000 to 9,000 metric tons) of Asian pears from Korea per year.  Korean pears enter the U.S. primarily during the late fall and winter when the U.S. tariff is 0.3 cents/kilogram.  Under the FTA this minimal tariff will be eliminated.  This FTA should not have a commercially noticeable impact on the importation of Korean pears to the U.S. In 1999 Korea produced 490,000 metric tons of apples (25.5 million 42 pound cartons) between 1999 and 2004 production decreased each year reaching 357,000 metric tons (18 million 42 pound cartons) in 2004.  In 1994 Korea obtained phytosanitary access to the U.S. market under a cold treatment and methyl bromide fumigation protocol.  The only time Korean apples entered the U.S. was in 2003 when 19 metric tons (about 995 cartons) were shipped.  All imported apples enter the U.S. duty free.  This FTA should not impact the importation of Korean apples to the U.S. 8/14/07 Northwest Horticultural Council 105 South 18th Street, Suite 105 Yakima, Washington 98901, USA Voice: (509) 453-3193, Fax: (509) 457-7615 E-mail general@nwhort.org