|
|
|
Benefits of the US-Taiwan FTA » State by State
|
|
Mississippi  
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 Mississippi accounted for $25.34 million. Still, there remain substantial opportunities for Mississippi 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 Mississippi, Taiwan has been pushing for the signing of a U.S.-Taiwan Free Trade Agreement. If the U.S.-Taiwan FTA is signed, Mississippiˇ¦s exports to Taiwan shall increase. This result was also determined by the U.S. International Trade Commission in its publication entitled U.S.-Taiwan FTA: Likely Economic Impact of a Free Trade Agreement between the United States and Taiwan, which estimates that U.S. exports of vehicles to Taiwan will increase by more than 100% with the signing of U.S.-Taiwan FTA. That is to say, Mississippiˇ¦s auto industry would enjoy immediate benefits from the signing of U.S.-Taiwan FTA. Having already recognized the benefits for the State of Mississippi made possible by the U.S.-Taiwan FTA, the State Senate and the House of Representatives passed a resolution in 2006 supporting it.
Mississippiˇ¦s large agricultural industry would certainly benefit from this FTA. 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. The USITC report on the U.S.-Taiwan FTA also estimates that U.S. exports to Taiwan of fishery products will increase by more than 100% as a result of the signing of U.S.-Taiwan FTA. Evidently, Mississippi would enjoy immediate benefits from the U.S.-Taiwan FTA through the elimination of tariffs on most agricultural and fishery products and increased Taiwanese demand for U.S. products and services.
Major industries in Mississippi, such as auto parts, textiles, food processing, metal manufacturing and shipbuilding, and emerging industries, such as the furniture, plastics, chemicals and tourism industries, will also benefit significantly from a free trade agreement between the U.S. and Taiwan. Indeed, tariff reductions and further liberalization made possible by the U.S.-Taiwan FTA will open up market access in Taiwan and the Asia-Pacific. Furthermore, the U.S.-Taiwan FTA will also create many opportunities for Mississippi 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 Mississippi 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. The signing of U.S.-Taiwan FTA would also lead to closer investment and trade relations between the U.S. and Taiwan and, accordingly, Mississippi and Taiwan. Currently, there is only one Taiwanese investment (a TV cable producer) in Mississippi. Accordingly, there remains significant potential for Taiwanese enterprises to increase their human and capital investment in Mississippi. 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 Mississippi and 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 the signing of U.S.-Taiwan FTA would be good for Mississippi 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 Mississippi made possible by the U.S.-Taiwan FTA, we hope that the administration, the Senate and the House of Representatives and members of the private sector of the State of Mississippi can further promote it, so that the enormous economic potential that exists between Mississippi and Taiwan can be more fully realized.
|
|
|
