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Benefits of the US-Taiwan FTA » State by State
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Minnesota  
The U.S. and Taiwan have shared a close economic and trade partnership over the years. According to the U.S. Department of Commerce, bilateral trade between the U.S. and Taiwan reached $61.24 billion in 2006, making Taiwan the 9th largest trading partner for the U.S. Minnesota exported $350.83 million of merchandise to Taiwan in the same year. Minnesota・s exports to Taiwan encompass a wide range of commodities and industries, including machinery, computer & electronics products, chenical, processed foods, and plastic & rubber products. Paper products There remain substantial opportunities for Minnesotan companies to expand their business ties with Taiwan. Accordingly, in the hope of strengthening economic ties between the U.S. and Taiwan, including business opportunities for Minnesota, Taiwan has been pushing for the signing of a Taiwan-U.S. Free Trade Agreement .
Minnesota・s farm production reached $11.02 billion (6th largest in the U.S.) in 2005, of which $2.87 billion was generated from exports (5th largest in the U.S. as well). Meanwhile, Taiwan remains one of the largest importers of U.S. agricultural goods, and the U.S. is Taiwan・s largest supplier of agricultural products. In 2005, a Taiwan 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 the purchase is expected to reach $3.1 billion, or $400 million more than the last purchase agreement, signed in 2003. Judging from this trend, it is clear that Minnesotan 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.
The leading industries in Minnesota are computer and electronics products, food, and fabricated metals. These industries would benefit from tariff reductions and further trade facilitation made possible by the U.S.-Taiwan FTA. Their exports to Taiwan will increase as a result. In addition, the signing of the U.S.-Taiwan FTA would also lead to closer investment relations between the U.S. and Taiwan and, accordingly, Minnesota and Taiwan. Both Taiwan and Minnesota have an edge in the high-tech arena. Taiwan・s automotive, electronics, biotechnology, communications, and optical industries are moving forward with their respective global strategies. After the signing of the the U.S.-Taiwan FTA, the elimination of tariffs for materials and components and the liberalization of investment and trade facilitation will make Minnesota even more attractive to the Taiwan・s high-tech businesses. the U.S.-Taiwan FTA for certain provides the perfect vehicle 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. For Minnesota・s farming and manufacturing sectors, the strengthening of Taiwan・s existing relations with the U.S. accordingly translates into real and immediate benefits. In conclusion, it is clear that the signing of the U.S.-Taiwan FTA is good for Minnesota 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. We hope that the administration, the Senate and the House of Representatives of the State of Minnesota will similarly convey strong support for U.S.-Taiwan FTA to the Bush Administration to enhance the economic benefits for both Minnesota and Taiwan.
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