|
|
|
Benefits of the US-Taiwan FTA » State by State
|
|
Arkansas  
Taiwan maintains close economic and trade relations with the U.S. According to U.S. statistics, bilateral trade between the two sides amounted to $61.2 billion in 2006. The value of U.S. exports to Taiwan reached $23 billion, of which Arkansas accounted for $57.02 million. Still, there remain substantial opportunities for Arkansan companies to expand their business ties and cooperative efforts with Taiwan. In hopes of strengthening economic ties between the U.S. and Taiwan, including business opportunities for Arkansas, Taiwan has been pushing for the signing of a U.S.-Taiwan Free Trade Agreement. If the U.S.-Taiwan FTA is signed, Arkansan exports to Taiwan shall increase. Having already recognized the benefits for the State of Arkansas made possible by the U.S.-Taiwan FTA, the State Senate and the House of Representatives passed resolutions supporting it in 2005.
Arkansas continues to be an important agricultural producer. Arkansas is the top U.S. producer of rice and the second largest producer of chickens, as well as an important producer of soybeans, catfish, turkeys, grapes, and cotton. Taiwan imports a significant amount of agricultural products from Arkansas every year and remains the 5th largest importer of U.S. agricultural goods overall. In 2005, for example, Taiwan 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. A report by the U.S. International Trade Commission on the impact of the U.S.-Taiwan FTA estimates that U.S. exports of rice and other foods to Taiwan will increase by more than 100%. As a result, Arkansasˇ¦ rice and frozen chicken industries will likely enjoy immediate benefits from the signing of U.S.-Taiwan FTA through the elimination of tariffs on most agricultural products and increased Taiwanese demand for U.S. products and services.
The U.S.-Taiwan FTA will also create many opportunities for Arkansan 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 Arkansas companies to expand their reach into the Asia Pacific region. Indeed, Taiwanese companies continue to be leading forces of 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. The signing of U.S.-Taiwan FTA would also lead to closer investment and trade relations between the U.S. and Taiwan and, accordingly, Arkansas and Taiwan. Currently, Taiwanese companies have made just two investments in Arkansas, one in the food processing sector and the other in the lumber industry. Accordingly, there remains significant potential for Taiwanese enterprises to increase their human and capital investment in Arkansas. The U.S.-Taiwan FTA would provide the perfect vehicle for them to do so.
The level of trade between the U.S. and Taiwan far exceeds that 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 U.S.-Taiwan trade level is 38 and 50 times greater, respectively. For the people of Arkansas and its businesses, the strengthening of Taiwanˇ¦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 Arkansas and good for America.
As of April 2007, the U.S.-Taiwan FTA proposal has been endorsed by a total of 64 legislatures in 38 states, the Council of State Governments and the National Association of Secretaries of State. Given the great benefits to the State of Arkansas made possible by the U.S.-Taiwan FTA, we hope that the administration, the Senate and the House of Representatives and the private sector of the State of Arkansas can lend further support for it, so that the enormous economic potential that exists between Arkansas and Taiwan can be more fully realized.
|
|
|
