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Benefits of the US-Taiwan FTA » State by State
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Missouri  
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 Missouri accounted for $118.9 million. Still, there remain substantial opportunities for Missouri companies to expand their business and cooperation with Taiwan. In hopes of strengthening economic ties between the U.S. and Taiwan, including business opportunities for Missouri, Taiwan has been pushing for the signing of a U.S.-Taiwan Free Trade Agreement. If the U.S.-Taiwan FTA is signed, Missouriˇ¦s exports to Taiwan shall considerably increase. Having already recognized the benefits for the State of Missouri made possible by the U.S.-Taiwan FTA, the State Senate and the State House of Representatives passed resolutions supporting it in 2005.
Missouri is a major agricultural state, with agricultural production worth $4.8 billion. The state exports $1.5 billion in agricultural products and Taiwan has purchased corn and soybeans from Missouri for many years. The 2005 Taiwan Agricultural Trade Goodwill Mission visited Missouri and eight other agricultural states and facilitated the purchase of 14.5 million metric tons of U.S. grain and 6 million pieces of cattle hides for 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 Missouriˇ¦s farmers would enjoy immediate benefits from the signing of U.S.-Taiwan FTA, which would eliminate tariffs on most agricultural and industrial products and increase Taiwanese demand for U.S. products and services.
Other key industries in Missouri include aviation, automobiles, computers, pharmaceuticals, biotechnology, shoes, wine production and other light industries. These industries would also benefit from tariff reductions and further liberalization made possible by the U.S.-Taiwan FTA. For example, a report by the U.S. International Trade Commission on the impact of U.S.-Taiwan FTA estimates that U.S. exports to Taiwan of vehicles will increase by more than 100%. The U.S.-Taiwan FTA will also create many opportunities for Missouriˇ¦s 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 Missouri 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, Missouri and Taiwan. Currently, six Taiwanese companies have invested in Missouri in sectors such as sports equipment, lighting, food processing, and computer parts. Still, there remains significant potential for Taiwanese enterprises to increase their human and capital investment in Missouri. 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 Missouri and its companies, 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 Missouri 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 Missouri 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 Missouri can further promote it, so that the enormous economic potential that exists between Missouri and Taiwan may be fully realized.
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