United States and Korea Streamline Organic Trade
Organic processed products certified in the United States or Korea can now be labeled as organic in…Organic processed products certified in the United States or Korea can now be labeled as organic in either country. This will allow American organic farmers, processors, and businesses greater access to Korea’s growing market for organic products. The arrangement between the two nations will take effect on July 1, 2014.
“Korea is a growing, lucrative market for U.S. organic products, and this arrangement increases demand for American organic products,” said Tom Vilsack, Secretary of Agriculture. “This is another chapter in the success story of organic agriculture, which provides more economic opportunities for American producers, more choices for consumers, and more jobs in rural communities across the country.”
“America’s organic farmers and businesses have a reason to celebrate,” said Ambassador Michael Froman, U.S. Trade Representative. “We are committed to unlocking new opportunities for Americans and through this work we are delivering for the communities that depend on agricultural products. This deal serves as another foundation for future organic trade arrangements between the United States and other partners.”
Without this equivalency arrangement in place, organic farmers and businesses wanting to sell organic processed products in either country would have to obtain separate certifications to meet each country's organic standards. This typically has meant two sets of fees, inspections, and paperwork, and delays for U.S. farmers and businesses trying to export. Similar to previous U.S. equivalency arrangements with Canada, the European Union, and Japan, this arrangement with Korea eliminates significant barriers, especially for small and medium-sized organic businesses. This is Korea’s first organic equivalency arrangement with any trading partner and serves as an example of how closely the United States is working with Korea to address emerging issues and strengthen the trade relationship.
Leading up to today's announcement, U.S. and Korean technical experts conducted thorough on-site audits to ensure that their programs' regulations, quality control measures, certification requirements, and labeling practices were compatible.
The arrangement covers organic condiments, cereal, baby food, frozen meals, milk, and other processed products. According to U.S. industry estimates, exports of organic processed products from the United States are valued at approximately $35 million annually.
The United States and Korea are committed to ensuring that all traded organic processed products meet the terms of the arrangement, retaining their organic integrity from farm to market. Korea's National Agricultural Products Quality Management Service and the U.S. Department of Agriculture's (USDA) National Organic Program—which oversee organic products in their respective countries—will both take on key oversight roles.
The United States and Korea will continue to have regular discussions and will review each other's programs periodically to ensure that the terms of the arrangement are being met.