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Benefits of the US-Taiwan FTA » State by State
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New York  
The U.S. and Taiwan share a close, long-term economic relationship. According to 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 South Korea (its 7th largest trading partner) in April 2007. Since Taiwan is a gateway for U.S. firms to Asia and the 9th largest trading partner to the U.S., it is only natural the U.S.-Taiwan Free Trade Agreement be signed. This is true based on industry interests as well as the integration of Asian economies, regional security and stability.
New York exported $57.3 billion worth of products in 2006, of which about $1 billion went to Taiwan, making Taiwan New York・s 15th largest market. Major exports to Taiwan include cast glass, gold, machines for making electronic tubes, electronic integrated circuits, and machinery. Signing TUFTA would immediately lower tariffs on most industrial products to zero. Taking New York as an example, tariffs of its top three exports to Taiwan in 2006 currently stand at 10%, 0%, and 4%, respectively. Products from New York would be more competitive in Taiwan due to the resulting lower prices. As a result, New York・s exports to Taiwan would grow tremendously and industries in New York would benefit from such growth.
New York has established a close investment and cooperative relationship with Taiwan. As many as 57 of the U.S.・s top 500 companies have their headquarters located in New York, making it first among all 50 states. Of those, 12 have invested in Taiwan, including IBM, Pfizer, Corning, Citi Group, AIG, MetLife, J.P. Morgan, Morgan Chase, Merrill Lynch, and New York Life. Currently, 300 Taiwanese companies have invested in New York in sectors such as computers, finance, jewelry, sporting goods, and the garment industry.
Once TUFTA is signed, trade and investment barriers between New York and Taiwan would be either reduced tremendously or eliminated completely. In particular, high-tech companies like IBM, Pfizer, and Corning would be able to take advantage of the U.S.-Taiwan FTA for their investment, innovation, and R&D as well. As to the finance, insurance, and VC companies of New York State, limitations to trade and investment in services would be lowered and markets would be more transparent and predictable, helping companies in those areas benefit from greater market access and investment opportunities in Taiwan.
In 2006, seven of New York・s top 15 export markets were in Asia, accounting for 27% of New York・s exports. That made Asia more important than New York・s top market - Canada (21%). Taiwan is located at the axis of East Asia, and it is the hub for entering China, the world・s biggest manufacturing center and marketplace. In addition, Taiwan not only uses the same language as China but also possesses a higher quality workforce, a better legal framework, a more efficient financial sector, and a sounder infrastructure. As a result, the U.S.-Taiwan FTA would enable New York companies to utilize Taiwan as a gateway to China and the Asia-Pacific region. In order to enhance economic cooperation between Taiwan and the U.S., as well as with New York, Taiwan is proposing the U.S.-Taiwan FTA now.
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