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Benefits of the US-Taiwan FTA » State by State
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Oregon  
In 2006, Taiwan was Oregon’s 7th largest export market, with exports to Taiwan totaling $855 million. Oregon’s leading exports to Taiwan include IT products, machinery, agricultural products, waste and scrap and chemicals. Taiwan is also one of Oregon’s principle markets for agricultural exports. Potatoes, onions, fishery goods, and fruits are among the top agricultural exports to Taiwan. Still, with Oregon’s exports accounting for a relatively small share of U.S.’ total $23 billion exports to Taiwan, there remain substantial opportunities for growth in Oregon-Taiwan trade. Oregon’s agricultural products and transportation equipment exports to Taiwan have been gradually increasing in recent years. Accordingly, in the hope of strengthening economic ties between the U.S. and Taiwan, including business opportunities for Oregon, Taiwan has been pushing for the signing of a Taiwan-U.S. Free Trade Agreement (U.S. – Taiwan FTA).
In the past, the agricultural and fishery sectors were Oregon’s main sources of revenue. However, Oregon has recently shifted its focus to manufacturing and high-tech industries, and Governor Kulongoski has been emphasizing the importance of innovation in enhancing Oregon’s competitiveness. At present, a focus has been placed on the IT, biotechnology, semiconductor, LCD, and chemicals sectors. Taiwan is a potentially large market for these products. If TUFTA is signed, tariff reductions and greater trade facilitation shall increase Oregon’s exports to Taiwan.
Oregon has made strengthening exports to Asia an important policy initiative. Once TUFTA is signed, tariff rates on a majority of agricultural, fishery and industrial products would immediately drop to zero. Furthermore, it would intensify closer economic and commercial partnership between the U.S. and Taiwan. This would not only help stimulate the development of Oregon’s industries, but also help Oregon’s products and services enter Taiwan, and especially enhance exports of transportation, bio-tech, and agricultural products. 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. This is especially true for OregonHawaii.
As of April 2007, the U.S. – Taiwan FTA proposal has been endorsed by a total of 64 legislatures of 38 states, the Council of State Governments and the National Association of Secretaries of State. Given the great benefits to the State of Oregon made possible by U.S. – Taiwan FTA, we hope that the administration, Senate and House of Representatives of the State of Oregon will similarly convey their strong support for to the Bush Administration.
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