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Benefits of the US-Taiwan FTA » State by State
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Pennsylvania  
The U.S. and Taiwan share a close, long-term economic relationship. According to U.S. statistics, bilateral trade totaled $61.24 billion in 2006. Taiwan is the 9th largest 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 2006. 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.
Pennsylvania exported $26.3 billion worth of products in 2006, $367 million of which went to Taiwan, making Taiwan the 16th largest market. In the past three years, the annual growth rate for Pennsylvania・s exports to Taiwan was 12.36%. Major exports to Taiwan include halide oxides, railway coaches, alloy steel, and vaccm pumps. Signing TUFTA would immediately lower tariffs on most industrial products to zero. Taking Pennsylvania as an example, the tariffs of its top 4 items to Taiwan in 2006 will then drop from 2.5~5% to 0. Products from Pennsylvania will be more competitive in Taiwan owing to the elimination of trade barriers. As a result, Pennsylvania．s exports to Taiwan will grow tremendously; therefore, industries in Pennsylvania will benefit from such growth.
Pennsylvania has established a close investment and cooperative relationship with Taiwan. Pennsylvania．s Representative Office in Taiwan was established to promote economic relations in late 2005. As many as 25 of the U.S.・s top 500 companies have their headquarters in Pennsylvania. Among those companies, four have invested in Taiwan; they are PPG Industries, Rohm & Haas Co., Air Products, and Unisys. Currently, 20 Taiwanese companies have invested in Pennsylvania in sectors like electronics, computers, and trade. One of the largest was the Hon Hai Group・s investment in AMP・s electronic division.
Once the U.S.-Taiwan FTA is signed, trade and investment barriers would be tremendously reduced or eliminated. In particular, high-tech companies like Air Products and Unisys would benefit from the U.S.-Taiwan FTA for their investment, innovation, and R & D as well.
In 2006, six of Pennsylvania・s top 16 export markets were in Asia, accounting for 16.5% of Pennsylvania・s exports. 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 Pennsylvanian companies to utilize Taiwan as a gateway for their products to China and the Asia-Pacific region. In order to enhance the economic cooperation between Taiwan and the U.S., as well as with Pennsylvania, Taiwan is proposing the U.S.-Taiwan FTA now.
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