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Trade agreements would increase jobs, market price for pork proBy Jennifer Bremer Free trade agreements with South Korea, Columbia, Peru and Panama would not only increase jobs in the U.S. pork industry, but it could also add up to $10 per head to the U.S. live hog prices. During a news conference on June 7 at the World Pork Expo in Des Moines, Iowa, the National Pork Producers Council urged Congress to support the job-promoting free trade agreements with South Korea, Colombia, Peru and Panama. The deals will eliminate tariffs and barriers to trade that currently limit U.S. pork products from going into those countries. "Currently, 15 percent of pork is exported, but we need to be able to maintain the current markets and expand these in order to keep prices up for our producers," said NPPC President Jill Appell, a pork producer from Altona, Ill. Pork exports account for $2.6 billion to pork producers annually with 3.6 billion pounds sent to different countries. According to Iowa State University agriculture economist Dermot Hayes, pork producers are currently receiving $33.60 more per pig marketed due to the export markets. The expansion of exports to more countries would help keep market prices up. The export market helps to generate 82,500 U.S. jobs in the pork industry alone. A majority of the jobs are located in rural America. Overall, the U.S. pork industry supports an estimated 550,000 domestic jobs, generates more than $97.4 billion annually in total U.S. economic activity and contributes $34.5 billion to the U.S. gross national product. "Right now, South Korea is the most important market to receive," said Appell. "That is our fourth largest export market, but we could expand that even more." According to Hayes, if a trade agreement is made with South Korean officials, it will add up to $10 per hog to the U.S. live prices. A Columbian agreement would add $1.63 per hog, and agreements in Peru and Panama would increase markets by 83 cents and 20 cents, respectively. These agreements would lead to a decrease or elimination of tariffs on pork exports. "The South Korean agreement is a defining moment for trade," said Nick Giordano, International Trade Counsel for NPPC. "Congress won't currently do anything with South Korea until they resume beef trade, but they also know there is too much at stake to not pass an agreement with South Korea." Giordano said the profits that producers have been seeing is due to the expansion of the export markets, therefore even more expansion will help producers in the future. The trading partners will also have to pass similar legislation in their own countries to get the free trade agreement to work. Giordano said that Peru has already passed this legislation. "Pork exports have contributed greatly to the profitability of U.S. pork producers in recent years," said Appell. "NPPC urges Congress to support the trade agreements with South Korea, Columbia, Peru and Panama, which would improve the financial livelihood of pork producers throughout the nation." Jennifer Bremer can be reached by phone at 641-938-2342 or by e-mail at jbremermaj@hotmail.com. B 11 6/25/07 1 Star WK Date: 6/21/07
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