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Benefits of the US-Taiwan FTA » State by State
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North Carolina  
Taiwan was North Carolina・s 15th largest export market in 2006, with exports to Taiwan reaching $304 million, an increase of 11.3% from a year earlier. North Carolina・s primary exports to Taiwan include chemicals, computer and electronics products, machinery manufactures, crop production, metal products, paper products, miscellaneous manufactures, plastic & rubber products, and electrical equipment, appliances and parts. Still, with North Carolina・s exports to Taiwan accounting for a relatively small part of the total $23 billion worth of exports from the United States to Taiwan in 2006, there remain substantial opportunities for North Carolina companies to expand their business ties with Taiwan. In hopes of strengthening economic ties between the U.S. and Taiwan, including business opportunities for North Carolina, Taiwan has been promoting the signing of the U.S.-Taiwan Free Trade Agreement (FTA). Having already recognized the benefits for the State of North Carolina made possible by the U.S.-Taiwan FTA, the State Senate and the State House of Representatives passed resolutions supporting the U.S.-Taiwan FTA in 2005.
Agribusiness is one of the leading industries in North Carolina. 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, $400 million more than the last purchase agreement, signed in 2003. Judging from this trend, it is clear that North Carolina・s farmers would enjoy immediate benefits from the signing of the U.S.-Taiwan FTA, which would eliminate tariffs on most agricultural and industrial products and increase Taiwanese demand for U.S. agricultural products.
Other key sectors in North Carolina include motor vehicles and heavy equipment, information technology and communications, plastics, rubber and related chemicals industries. North Carolina also has well-developed pharmaceutical and biotechnology industries, as seen at the Research Triangle Park and many other science research business parks in the state. These industries would benefit from tariff reductions and further trade liberalization made possible by the U.S.-Taiwan FTA. Also, Taiwan has placed itself in an influential position in many sectors in China, having the same language and cultural background and a strong entrepreneurial spirit. The U.S.-Taiwan FTA will therefore create many opportunities for North Carolina businesses both to 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 North Carolina companies to expand their reach into the Asia Pacific region. Indeed, Taiwanese companies continue to be leading forces of 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 the U.S.-Taiwan FTA would also lead to closer investment and trade relations between the U.S. and Taiwan and, accordingly, North Carolina and Taiwan. North Carolina has already attracted investment from several Taiwanese companies. Still, there remains significant potential for Taiwanese enterprises to increase their human and capital investment in North Carolina. The U.S.-Taiwan FTA would provide the perfect vehicle for them to do so.
The level of trade between Taiwan and the U.S. 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 Taiwan-U.S. trade level is 38 and 50 times greater, respectively. For the people of North Carolina and its businesses, the strengthening of Taiwan・s existing relations with the U.S. would translate into real and immediate benefits. In conclusion, it is clear that the signing of the U.S.-Taiwan FTA would be good for North Carolina and good for America.
As of August 2006, the U.S.-Taiwan FTA proposal has been endorsed by a total of 49 legislatures in 28 states, the Council of State Governments and the National Association of Secretaries of State. Given the great benefits to the State of North Carolina made possible by the U.S.-Taiwan FTA, we hope that the administration, the Senate and the House of Representatives of the State of North Carolina will further convey their strong support for the U.S.-Taiwan FTA to the Bush Administration.
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