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Benefits of the US-Taiwan FTA » State by State
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Alabama  
Taiwan was Alabama・s 14th largest export market in 2006, with exports to Taiwan reaching $202 million, an increase of 6.2% from a year earlier. Alabama・s primary exports include machinery, chemicals, miscellaneous manufactures, crop production, computer and electronics products, paper products, primary metals, transportation equipment, processed foods, and plastic and rubber products. Still, with Alabama・s exports to Taiwan accounting for a relatively small part of the total $23 billion worth of exports from the United States to Taiwan in 2006, substantial opportunities remain for Alabama companies to expand their business ties with Taiwan. In hopes of strengthening economic ties between the U.S. and Taiwan, including business opportunities for Alabama, Taiwan has been promoting the signing of the U.S-Taiwan Free Trade Agreement (FTA). We welcome any resolutions that have supported the U.S.-Taiwan FTA being passed by the State Senate and the House of Representatives between 2003 and 2006. As of August 2006, the U.S.-Taiwan FTA proposal has been endorsed by a total of 49 legislatures in 28 states, the Council of State Governments and the National Association of Secretaries of State.
Agribusiness continues to be one of the leading industries in Alabama, and Alabama・s chief agricultural products include: poultry, cattle and calves; greenhouse, nursery and sod products; cotton and peanuts. Meanwhile, Taiwan remains the 5th largest importer of U.S. agricultural goods (the U.S. is the largest supplier of agricultural products to Taiwan) and in 2005 dispatched a procurement mission to nine major farming states. The procurement mission signed a letter of intent to purchase 14.5 million metric tons of grain and 6 million pieces of leather in 2006 and 2007. The value of these purchases is expected to reach $3.1 billion, $400 million more than the last purchase agreement, signed in 2003. Judging from this trend, it is clear that Alabama・s farmers would enjoy immediate benefits from the signing of the U.S.-Taiwan FTA, which would eliminate tariffs on most agricultural and industrial products and increase Taiwanese demand for U.S. agricultural products.
Other key industries in Alabama include paper products, chemicals, textiles and clothing, primary metals, food products, wood products, printing, and motor vehicles and other transportation equipment. These industries would also benefit from tariff reductions and further trade liberalization made possible by the U.S.-Taiwan FTA. Also, Taiwan has placed itself in an influential position in many sectors in China, having the same language and cultural background as well as a strong entrepreneurial spirit. The U.S.-Taiwan FTA can therefore create many opportunities for Alabama businesses to both collaborate with Taiwanese companies and utilize Taiwan as a gateway to China and other Asian markets. Through joint ventures in high-tech industries, for example, Taiwan could become a major platform for Alabama companies to expand their reach into the Asia Pacific region. Indeed, Taiwanese companies continue to be a leading force for development in China in various fields as well as key investors in several emerging Southeast Asian countries, including Vietnam, Malaysia, Thailand, the Philippines and Indonesia. In addition, the signing of the U.S.-Taiwan FTA would also lead to closer investment and trade relations between the U.S. and Taiwan and, accordingly, Alabama and Taiwan. Alabama has already attracted investment from several Taiwanese companies. Still, there remains significant potential for Taiwanese enterprises to increase their human and capital investment in Alabama. The U.S.-Taiwan FTA would provide the perfect vehicle for them to do so.
The level of trade between Taiwan and the U.S. far exceeds the value of trade between the U.S. and many of its FTA signatories. Looking at U.S. trade with FTA signatories such as Jordan and Morocco, for example, the Taiwan-U.S. trade level is 38 and 50 times greater, respectively. For the people of Alabama and its companies, the strengthening of Taiwan・s existing relations with the U.S. would translate into real and immediate benefits. In conclusion, it is clear that signing the U.S.-Taiwan FTA would be good for Alabama and good for America. We therefore hope that the administration, the Senate and the House of Representatives and the private sector of the State of Alabama can further support the U.S.-Taiwan FTA, so that the enormous economic potential that exists between Alabama and Taiwan can be more fully realized.
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