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Benefits of the US-Taiwan FTA » State by State
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Connecticut  
The U.S. and Taiwan share a close, long-term economic partnership. According to U.S. statistics, bilateral trade totaled $61.24 billion in 2006. Taiwan is the 9th largest trading partner of the U.S. In 2006, the United States exported $23.02 billion to Taiwan, making Taiwan the 13th largest market (the 10th in 2005) for U.S. products. The U.S. signed an FTA with Singapore (its 11th largest trading partner) in 2003, with Australia (its 14th largest export market) in 2004, and with South Korea (its 7th largest trading partner) in April 2007. Since Taiwan is a gateway for American products into the Asia-Pacific region and the 9th largest trading partner and the 13th largest export market of the U.S., it would be mutually beneficial for the U.S. and Taiwan to have a U.S.-Taiwan Free Trade Agreement in place as soon as possible.
Connecticut contributed $158.6 million worth of the U.S. exports to Taiwan in 2006. Connecticutˇ¦s primary exports to Taiwan include turbojets, machines, repaired imports, aircraft parts, and cyclic hydrocarbons. With Connecticutˇ¦s exports accounting for a relatively small share of U.S. total exports to Taiwan, there remain substantial opportunities for growth. Accordingly, in the hope of strengthening bilateral economic ties, including business opportunities for Connecticut, Taiwan has been pushing for the signing of the U.S-Taiwan FTA.
Once the U.S-Taiwan FTA is in place, tariffs on most industrial products would immediately be eliminated. For Connecticut, the export costs to Taiwan would be reduced and competitiveness would increase. It is expected that exports to Taiwan would grow swiftly and that industries in Connecticut would benefit.
Connecticut is a prosperous state that maintains close economic, investment, and cooperative relations with Taiwan. The most developed industries in Connecticut are finance, insurance, and aerospace, which are also now strategically focused upon by Taiwan. If the U.S-Taiwan FTA is signed, Connecticutˇ¦s products and services shall expand their market share in Taiwan through tariff reductions and trade facilitation measures. The potential for future cooperation is huge, and the U.S-Taiwan FTA would provide the perfect vehicle to do so. Already there are about 40 Taiwanese companies invested in Connecticut, mainly in the electronics industry, the banking industry, and biotech R&D. However, most of these investments are small in scale, which implies significant potential for Taiwanese enterprises to increase their investments in Connecticut. The signing of the U.S.-Taiwn FTA would lead to closer investment relations between the U.S. and Taiwan and accordingly, Connecticut and Taiwan.
The FTA will substantially reduce or eliminate barriers to trade and investment by streamlining regulations and administration measures. There would be mutual recognition of standards for electrical and electronics equipment. Inspection and quarantine regulations would be improved, as would enforcement of other trade facilitations. In particular, it could help the U.S. and Taiwan to resolve such important issues as the pricing of pharmaceuticals, telecommunication market restrictions, and Intellectual Property Rights protection.
Connecticut exported $12.2 billion in 2006. Among its top 15 markets, there are 7 countries in the Asia, including Taiwan. Taiwan is located at the hub of the Asia-Pacific region off the coast of the Chinese mainland, the largest manufacturing center and marketplace in the world. With the same culture and language as China, Taiwan excels with higher quality manpower, a more comprehensive legal system, more efficient financial services, and better infrastructure and investment networks. Once the U.S.-Taiwan FTA is in place, Taiwan would be a perfect gateway for Connecticut companies to enter China and the Asia-Pacific region. The trade between Taiwan and the U.S. far exceeds that between the U.S. and many of its FTA signatories such as Australia, Chile, and Singapore. Accordingly, in the hope of strengthening economic ties between the U.S. and Taiwan, economic integration of the Asia-Pacific region, and regional security and stability, Taiwan has been pushing for the signing of the U.S.-Taiwan FTA. We hope that the administration, the Senate and the House of Representatives of the State of Connecticut will similarly convey strong support for the U.S-Taiwan FTA to the Bush Administration to enhance the economic benefits for both Connecticut and Taiwan.
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