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Carrot
Although U.S.
fresh carrots started to gain some market share in 2005 and 2006, imports were banned in May 2006 for phytosanitary
reasons. Currently Korea is importing fresh carrots only from China. After the FTA is implemented, the 30 percent tariff duty will be removed in five
equal annual stages becoming duty free in year five. If the phytosanitary issues can be addressed, U.S.
carrots may find an opportunity in the market.
If the U.S.
industry puts a priority on resolving the phytosanitary issues, the market may be open within four to five years, at which time the current tariff will be
zero. The elimination of the 30 percent
tariff will make U.S.
fresh carrots competitive with Chinese carrots.
Given the chance to export to this market,
U.S.
carrots may satisfy Korean consumers' desires for healthier snack foods.
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Advantages
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Disadvantages
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The demand for healthy food has led to an increase in carrot
consumption.
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Phytosanitary issues need to be addressed before imports can resume.
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U.S. carrots are crispier and
juicer than domestically grown carrots,
which are too hard to consume raw.
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Imported carrots are currently only consumed in the food service
sector or for processing.
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Under the KORUS FTA,
the 30 percent tariff will be eliminated within five years making U.S.
carrots more price competitive.
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Korean consumers are not used to eating raw carrots.
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