Idaho Companies Successfully Export to South Korea Thanks to Free-Trade Agreement
2/25/2013
Korea-U.S.
pact marks first anniversary March 15th
The Korea-United States Free Trade Agreement (KORUS FTA) will
celebrate its first anniversary on March 15th. The agreement with South Korea is the United
States' most commercially significant agreement in almost 20 years. Thanks in part to the KORUS FTA, three Idaho
companies – Glanbia Foods, Northwest River Supplies, and PakSense – have dramatically
increased sales.
“With the
ease of exporting to South Korea, we’ve seen steady growth over the last couple
years. Korea represents a huge
opportunity for us as we continue exploring new market opportunities, grow our
dealer base and increase our sales in the region,” said David Blue, director of
sales and marketing at Northwest River Supplies.
Northwest
River Supplies (NRS) specializes in products for the niche market of whitewater
rafting and kayaking. Today, the company
manufactures thousands of products from oars to lifejackets for paddling
enthusiasts all over the world. NRS
exports to approximately 60 countries and began trading with Korea about six
years ago by importing inflatable watercraft for use in river running
applications. Nearly a year later, NRS
began exporting to Korea as kayaking and whitewater rafting started to gain in
popularity. NRS benefits from reduced
tariffs and simplified trading for both its exports and imports as a two-way
trader with Korea.
Glanbia Foods
also is realizing tremendous success doing business in Korea. After exporting whey proteins and lactose to
Asian markets since the early 1990s, Glanbia Foods expanded its exports to
include cheese in 2007. That year, Korea
imported nearly 20 million pounds of cheese from the United States. Cheeses
such as cheddar had tariffs higher than 30 percent before the KORUS FTA. Those tariffs now are being incrementally
reduced until they are eliminated completely in 2021.
Dave Snyder, vice
president of global business development at Glanbia, said, “Korea – even before
the FTA was implemented – was identified as a key, strategic market, and is one
of the cornerstones for Glanbia’s growing export business in Asia.”
PakSense, a
manufacturer of intelligent packing labels that monitor perishable goods during
distribution and storage, began exporting to Korea in 2009. PakSense labels, which are about the size of a
sugar packet, monitor and store data on the condition and temperature of
packaged goods. They can even issue a warning if the temperature of a package
gets too hot or cold. The labels are
used to monitor seafood, meat, juice, chemicals, pharmaceuticals and other
products.
The KORUS FTA
allowed PakSense to grow its business on multiple fronts. First, tariff reductions make it cheaper for
Korean customers to purchase PakSense labels and protect their perishables. Second, as the KORUS FTA expands trade volume
between the United States and Korea, there are more potential customers who can
use PakSense’s labels.
All three
companies have worked with either the Idaho Department of Commerce or
Department of Agriculture for assistance in developing their international
relationships. To encourage Idaho
businesses to explore foreign export opportunities, Governor C.L. “Butch” Otter
will lead a trade mission to Korea and two other countries, April 19-27. Trade mission stops include Seoul, Korea;
Taipei, Taiwan; and Ho Chi Minh City, Vietnam.
For
more information about exporting internationally and the Governor’s upcoming
trade mission, visit:
http://commerce.idaho.gov/international
For
more information about the Korea-U.S. Free Trade Agreement, visit the Office of
the U.S. Trade Representative website
here.
News tag(s): Business International Free-Trade