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11-13-2024
Big Picture Report: November 2024
Bernadette Wiltz-Lang, SUSTA
One question we often hear from new exporters is – What country should I export to? This is a tough question because there are so many variables depending on what the product is. That said, a good place to start is by looking at the countries with which America has a free trade agreement (FTA). These agreements lower trade barriers, such as tariffs and quotas, making it easier and more cost-effective for our small U.S. agricultural producers to reach international consumers.
FTAs like the North American Free Trade Agreement (NAFTA) and the U.S.-Mexico-Canada Agreement (USMCA) have opened up significant markets for American goods. For example, trade with Mexico and Canada has led to an increase in exports of grains, livestock, dairy, and poultry.
The U.S.-Colombia Trade Promotion Agreement (CTPA) has had a significant positive impact on U.S. agricultural exports to Colombia, increasing the value of exports from $1.1 billion in 2012 to $3.4 billion in 2021.
Furthermore, Korea and the United States celebrated the 10th anniversary of the United States-Korea Free Trade Agreement in 2022. This agreement supports the bilateral trade relationship that accounted for South Korea ranking as the United States’ fifth largest market for agricultural and related products in 2023, with more than $8 billion in exports.
By reducing tariffs and addressing non-tariff barriers, FTAs make U.S. products more competitive abroad, which is essential for farmers who rely on exports to sustain and grow their operations.
However, these agreements often have impacts far beyond economics. They tend to include provisions that protect intellectual property and address sanitary and phytosanitary standards, which promote fair trade and ensure U.S. agricultural products meet international safety standards.
Where can you find out more about Americas FTAs? The USDA’s Foreign Agricultural Service website includes a list of FTAs and how they impact agriculture exports.
