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Benefits of the US-Taiwan FTA » State by State
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Georgia  
Taiwan was Georgia・s 13th largest export market in 2006, with Georgia・s exports to Taiwan reaching $362 million. Georgia・s primary exports to Taiwan include transportation equipment, chemicals, computer and electronics products, paper products, minerals, machinery, used merchandise, processed foods, and wood products. Still, with Georgia・s exports to Taiwan accounting for a relatively small part of the total $23 billion worth of exports from the U.S. to Taiwan in 2006, substantial opportunities remain for Georgian companies to expand their business ties with Taiwan. In hopes of strengthening economic ties between the U.S. and Taiwan, including business opportunities for Georgia, Taiwan has been promoting the signing of the U.S.-Taiwan Free Trade Agreement (FTA). Indeed, Georgia・s support of free trade is evident in its efforts to bring the headquarters of the Free Trade Area of the Americas (FTAA) Secretariat to Atlanta.
Agribusiness is one of the leading industries in Georgia. Taiwan imports a significant amount of agricultural goods from Georgia 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, $400 million more than the last purchase agreement, signed in 2003. Judging from this trend, it is clear that Georgia・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 therefore increase Taiwanese demand for U.S. agricultural products.
Georgia・s key industrial sectors include the aviation and aerospace sectors, sectors in which the state is one of the top ten employers in the U.S. Other key industries include energy, life sciences, logistics, and the automotive industry, which is the 7th largest in the nation. 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 and a strong entrepreneurial spirit. The U.S.-Taiwan FTA will therefore create many opportunities for Georgia 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 Georgia companies to expand their reach into the Asia Pacific region. Indeed, Taiwanese companies continue to be a leading force 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. 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, Georgia and Taiwan. Georgia, especially Metro Atlanta, has already attracted investment from many Taiwanese companies. Still, there remains significant potential for Taiwanese enterprises to increase their human and capital investment in Georgia. 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 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 amount of Taiwan-U.S. trade is 38 and 50 times greater, respectively. For the people of Georgia 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 the signing of the U.S.-Taiwan FTA would be good for Georgia and good for America.
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. Given the great benefits to the State of Georgia 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 Georgia can further promote the U.S.-Taiwan FTA, so that the enormous economic potential that exists between Georgia and Taiwan can be more fully realized.
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