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Benefits of the US-Taiwan FTA » State by State
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Rhode Island  
The United States and Taiwan share a close trade relationship. According to U.S. statistics, bilateral trade between Taiwan and the U.S. reached $61.2 billion in 2006. While Rhode Island・s total exports for that year reached $1.53 billion, exports to Taiwan amounted to just $10.91 million, making Taiwan Rhode Island・s 21st largest export market. Rhode Island・s major exports to Taiwan include computer and electronic products (23.3% of total exports to Taiwan), primary metal manufacturing (20.7%), chemicals (15.5%), miscellaneous manufactured commodities (12.3%), and non-electrical machinery (11.4%); Taiwan has an eager demand for these sectors, indicating enormous market potential for Rhode Island・s exports to Taiwan. Accordingly, in the hopes of strengthening economic ties between the U.S. and Taiwan, including business opportunities for Rhode Island, Taiwan has been pushing for the signing of a Taiwan-U.S. Free Trade Agreement (the U.S.-Taiwan FTA). We welcome and applaud the consecutive passing of resolutions by the Rhode Island Senate and House of Representatives in support of the U.S.-Taiwan FTA from 2004 to 2006.
Rhode Island・s major industries include communications and information technology, electronics, industrial products and manufacturing, chemicals, textiles, jewelry, defense/homeland security, and the marine industry. Rhode Island has obtained federal funds to support the development of high-tech industries such as bio-pharmaceuticals, information technology, and engineering industries. The sound infrastructure of Rhode Island should be a major attraction for foreign investors, including Taiwanese companies. The state's leading exports category is waste and scrap, which accounted for $278 million or 18.1% of Rhode Island's total merchandise exports in 2006. Other top exports in 2006 include miscellaneous manufactured commodities, computer and electronic products, non-electrical machinery, and chemicals. Meanwhile, small and medium-sized enterprises (SMEs) generated around 44.5% of the state's total exports of merchandise, the 4th largest among all 50 states. Rhode Island is seeking to connect with the global economy and enhance economic growth. The strategy of economic development in Rhode Island is quite similar to that of Taiwan. Accordingly, the signing of the U.S.-Taiwan FTA would help Rhode Island expand exports to Taiwan through the immediate elimination of tariffs on U.S. products. Taiwan also could share its experience in SMEs with Rhode Island. Furthermore, the infrastructure and the elimination of investment barriers would also attract Taiwanese investors.
As mentioned above, computer and electronic products, primary metal manufacturing, chemicals, and miscellaneous manufactured commodities are Rhode Island・s principle exports to Taiwan. In dollar terms, primary metal manufacturing is Rhode Island's fastest growing manufacturing export category. We believe that the signing of the U.S.-Taiwan FTA would expand Rhode Island's exports and further facilitate the development of various export industries. Furthermore, it would help create more employment opportunities and stimulate Rhode Island・s economic growth.
Singapore has been Rhode Island's biggest growth market since 1999. The U.S.-Singapore FTA was signed in 2003, and that year U.S. exports to Singapore grew by a significant 25.5%. Singapore is now the 12th largest export destination of Rhode Island. Apparently, Singapore and Rhode Island both benefited from the FTA. Compared to Singapore, Taiwan is a larger economy with enormous dynamics. Taiwan has excellent manufacturing and R&D capabilities and a highly trained workforce. Therefore, by signing the U.S.-Taiwan FTA, the benefits of prospective export growth would increase Rhode Island・s global competitiveness. Furthermore, it would help Rhode Island・s products and services enter Asia Pacific markets via Taiwan. 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. We welcome and applaud the passing of a resolution by the Rhode Island House of Representative and Senate in support of the U.S.-Taiwan FTA in February 2007.
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