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Benefits of the US-Taiwan FTA » State by State
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Montana  
Taiwan has close economic relations with Montana. In 20042006, Montana exported $27 36.70 million worth of products to Taiwan, making Taiwan Montanaˇ¦s 5th largest export market. Leading exports to Taiwan include chemical products, machinery, primary metal and mineral products. Semi-tool Inc., which is located in northwest Montana, exported $23 million worth of machinery for semiconductor industries to Taiwan in 2004 alone. Companies in Montana also purchased optical precision machinery and optical lens from Taiwan. Still, with Montanaˇ¦s exports accounting for a relatively small share of U.S.ˇ¦ $23 billion total exports to Taiwan, there remain substantial opportunities for growth in Montana-Taiwan trade. Accordingly, in the hope of strengthening economic ties between the U.S. and Taiwan, including business opportunities for Montana, Taiwan has been pushing for the signing of a Taiwan-U.S. Free Trade Agreement (U.S. ˇV Taiwan FTA).
Montana has an agriculture-based economy and has been one of Taiwanˇ¦s major sources of wheat. All the red hard wheat imported into Taiwan for the making of bread and noodles comes from Montana. Meanwhile, Taiwan remains the 5th largest importer of U.S. agricultural goods (the U.S. is the largest supplier of agricultural products to Taiwan). The 2005 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, $400 million more than the last purchase agreement signed in 2003. Judging from this trend, it is clear that Montana farmers would enjoy immediate benefits from the signing of TUFTA, which would eliminate tariffs on most agricultural and industrial products and increase Taiwanese demand for U.S. products and services.
Montanaˇ¦s other key industries will gain significantly from a Taiwan-U.S. FTA. Under U.S. ˇV Taiwan FTA, Montana exports would see increased Taiwanese demand through tariff reductions and other trade facilitation measures. In addition, the agreement would not only help stimulate industrial development in Montana, but also help Montanaˇ¦s products and services enter Asia Pacific markets via Taiwan. Studies have shown that the economic advantages from an FTA with Taiwan will far exceed those from most FTAs that the U.S. has already signed.
The U.S.ˇ¦conclusion of the bilateral FTA negotiations with South Korea on April of 2007 has had a very strong impact on Taiwan and other countries in the region. Both Taiwan and Korea are large and advanced economies. In 2006, Korea and Taiwan were the United States' 7th and 9th largest trading partners. From a commercial perspective, if Korea can offer a huge potential opportunity for the U.S., Taiwan will be able to do so, too. Most Taiwanese products are in head-to-head competition with those of Korea in the U.S. market. We worry that Taiwan will lose out in the U.S. market as soon as the Korea-U.S. FTA comes into effect. Taiwan has a unique geographical location in the Asia Pacific region and a long-term partnership with the U.S. For our mutual benefits and Americaˇ¦s strategic interests in this region, we hope to launch the negotiation with the U.S. as soon as possible.
As of April 2007, the U.S. ˇV Taiwan FTA proposal has been endorsed by a total of 64 legislatures of 28 states, the Council of State Governments and the National Association of Secretaries of State. Given the great benefits to the State of Montana made possible by U.S. ˇV Taiwan FTA, we hope that the administration, Senate and House of Representatives of the State of Montana will similarly convey their strong support for U.S. ˇV Taiwan FTA to the Bush Administration.
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