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Benefits of the US-Taiwan FTA » State by State
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New Jersey  
The U.S. and Taiwan share a close, long-term economic partnership. According to U.S. statistics, bilateral trade totaled $61.24 billion in 2006. Taiwan is the 9th largest trading partner of the U.S. In 2006, the U.S. exported $23.02 billion to Taiwan, making Taiwan the 13th largest market (the 10th in 2005) for U.S. products. The U.S. signed an FTA with Singapore (its 11th largest trading partner) in 2003, with Australia (its 14th largest export market) in 2004, and with Korea (its 7th largest trading partner) in April 2007. Taiwan is a gateway for American products into the Asia-Pacific region, the 9th largest trading partner and the 13th largest export market of the U.S. Therefore, it would be mutually beneficial for the U.S.-Taiwan Free Trade Agreement to be in place as soon as possible.
Trade relations between New Jersey and Taiwan have flourished recently. In the past three years, the growth rate of New Jersey・s exports to Taiwan averaged 3.32%. New Jersey・s principal exports to Taiwan include aircraft parts, silver, jewelry, machines, and bombs. Signing the U.S.-Taiwan FTA would immediately lower tariffs on most industrial products to zero. This would reduce exporting costs from New Jersey to Taiwan, increase the competitiveness of New Jersey・s products, increase export value from New Jersey to Taiwan, and simultaneously benefit industries in New Jersey.
New Jersey is a prosperous state that maintains close economic, investment and cooperative relations with Taiwan. Among the top 500 firms in the U.S., there are 24 corporations with their headquarters in New Jersey. Of those, 11 companies have operations or R&D centers in Taiwan, including Johnson & Johnson, Merck, Wyeth, and Schering-Plough. New Jersey・s major industries include pharmaceuticals, telecommunications, electronic equipment, and so on. The biotechnology sector in particular is booming. New Jersey is home to the headquarters of 15 of the world・s 20 largest pharmaceutical companies as well as one of the country・s largest biotechnology clusters. With 80,000 life sciences employees and more than 22,000 doctoral scientists and engineers working in the state, New Jersey also boasts over $12 billion in R&D expenditures and $150 billion in sales from life sciences companies. With the U.S.-Taiwan FTA in place, New Jersey・s exports to Taiwan would increase due to tariff reductions and trade facilitation measures. With biotechnology being targeted by the Taiwanese government for future development, there is even greater potential for cooperation with New Jersey. The U.S-Taiwan FTA would provide the perfect vehicle for such cooperation. About 100 Taiwanese companies have already invested in New Jersey, primarily in the electronics, computer, trading and chemical engineering sectors. Major investors include Formosa Plastics, Evergreen, Eva Air, and Yang Ming Marine Transport.
The FTA will substantially reduce or eliminate barriers to trade and investment by streamlining regulations and administration measures. There would be mutual recognition of standards for electrical and electronics equipment. Inspection and quarantine regulations would be improved, as would enforcement of other trade facilitations. In particular, it could help the U.S. and Taiwan to resolve such important issues as the pricing of pharmaceuticals, telecommunication market restrictions, and Intellectual Property Rights protection.
New Jersey exported $27.0 billion in 2006. Among its top 14 markets, there are 4 countries in Asia, including Taiwan. Taiwan is located at the hub of the Asia-Pacific region off the coast of the Chinese mainland, the largest manufacturing center and marketplace in the world. With the same culture and language as China, Taiwan excels with higher quality manpower, a more comprehensive legal system, more efficient financial services and better infrastructure and investment networks. Once TUFTA is in place, Taiwan would be the perfect gateway for New Jersey companies to enter China and the Asia-Pacific region. The trade between Taiwan and the U.S. far exceeds that between the U.S. and many of its FTA signatories such as Australia, Chile, and Singapore. Accordingly, in the hope of strengthening economic ties between the U.S. and Taiwan, economic integration of the Asia-Pacific region, and regional security and stability, Taiwan is pushing for the signing the U.S.-Taiwan FTA.
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