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Benefits of the US-Taiwan FTA » Sector by Sector
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A United States-Taiwan Free Trade Agreement (FTA) will enhance the strong relationship between our two democratic countries by expanding trade and investment, promoting economic security, and creating new opportunities for workers and businesses in the US and Taiwan.
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TELECOMMUNICATIONS and TAIWAN  
Meaningful Commercial Gains for Goods and Services: An FTA will provide high value-added opportunities for U.S. business.
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The total revenue for Taiwan・s Communication Services in 2005 was $11.9 billion, an increase of 3.3% over 2004. The total revenue for Communication Equipment in 2005 was $15.4 billion, an increase of 23% from the year before. This expansion is expected to continue, with revenue forecast to grow by 26% in 2006.
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U.S. businesses will have opportunities along the value added chain of Communication Equipment, a potential market of $40 billion by 2008.
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Further opportunities exist in Communication Services, a potential market of $30 billion by 2008. The net profit in this area is over $2.5 billion, and the market is not yet saturated.
An Innovative Partner: An FTA will enhance access into a market primed for expansion in high-value products.
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The creation of the National Communication Commission (NCC) is representative of the government・s commitment to an world-class telecommunications industry. The NCC is an independent regulatory authority, long a priority and recently launched in February 2006. The NCC will streamline rules and regulations governing the industry and allow more competition by removing previous barriers to entry.
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The growth of broadband subscribers is especially impressive, rising from 250,000 to 3,870,000 in less than five years, an increase of over 700,000 broadband subscribers per year. These statistics confirm Taiwan・s commitment to creating a world-class communications environment for high quality services. U.S. businesses will thrive in this environment.
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With innovative expansion programs such as the ：Mobile Taiwan Project； and ：Wireless Taipei City； already in place, the Taiwanese market is certain to continue its impressive growth. The Mobile Taiwan project alone has a budget of $1.2 billion for 2006-2008, and promises high sales in a number of products, including next generation wireless technology, VoIP, high-end handsets, digital multimedia broadcasting technology.
THE NUMBERS
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Taiwan has one of the most rapidly advancing telecommunications industries in the world.
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Potential markets of over $70 billion by 2008
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The market for digital broadcasting equipment is estimated to reach $400 million in 2006.
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THE NEXT LOGICAL STEP: A U.S.-Taiwan FTA holds great promise for both U.S. and Taiwanese companies and workers. The agreement will bring with it new dynamism that will keep U.S.-Taiwan economic relations vital and strong. We look forward to working together with you to make this historic agreement a reality.
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