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Benefits of the US-Taiwan FTA » State by State
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Oklahoma  
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 Oklahoma accounted for $23.95 million. Still, there remain substantial opportunities for Oklahoma companies to expand business ties and cooperative efforts with Taiwan. In hopes of strengthening economic ties between the U.S. and Taiwan, including business opportunities for Oklahoma, Taiwan has been pushing for the signing of a U.S.-Taiwan Free Trade Agreement. If the U.S.-Taiwan FTA is signed, Oklahomaˇ¦s exports to Taiwan shall increase considerably. Having already recognizing the benefits for the State of Oklahoma made possible by the U.S.-Taiwan FTA, the State Senate and House of Representatives of Oklahoma passed the resolutions supporting it in 2005 and 2006.
Oklahoma is a major agricultural and dairy producer. 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. 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 motors and foods would increase by more than 100% with the signing of U.S.-Taiwan FTA. As a result, Oklahomaˇ¦s agriculture, motor and food industries would enjoy immediate benefits from the signing of U.S.-Taiwan FTA that would eliminate tariffs on most agricultural and industrial products and increase Taiwanese demand for U.S. products and services.
In addition to a large oil and gas industry, Oklahoma is a major manufacturer of machinery, transportation equipment, base metals, electrical appliances, petrochemicals and processed food. These important industries would also benefit from tariff reductions and further liberalization made possible by a U.S.-Taiwan free trade agreement. The U.S.-Taiwan FTA will also create many opportunities for Oklahoman 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 Oklahoma companies to expand their reach into the Asia-Pacific region. Indeed, Taiwanese companies continue to be a leading force 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 U.S.-Taiwan FTA would lead to closer investment and trade relations between the U.S. and Taiwan and, accordingly, Oklahoma and Taiwan. With little Taiwanese investment in Oklahoma at present, there remains significant potential for Taiwanese enterprises to increase their human and capital investment in Oklahoma and vice versa. 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 amount is 38 and 50 times greater, respectively. For the people of Oklahoma and its businesses, the strengthening of Taiwanˇ¦s economic 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 Oklahoma 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 Oklahoma made possible by the U.S.-Taiwan FTA, we hope that the administration, the Senate and the House of Representatives and the private sector of the State of Oklahoma can further promote it, so that the enormous economic potential that exists between Oklahoma and Taiwan may be fully realized.
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