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Benefits of the US-Taiwan FTA » State by State
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South Carolina  
Taiwan was South Carolina・s 18th largest export market in 2006, with exports to Taiwan reaching $157 million, an increase of 46.7% from a year earlier. South Carolina・s primary exports to Taiwan include machinery, chemicals, paper products, crop production, plastic and rubber products, processed foods, computer and electronics products, and waste and scrap. Still, with South 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, substantial opportunities remain for South 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 South Carolina, Taiwan has been pushing for the signing of the U.S.-Taiwan Free Trade Agreement (FTA). Having already recognized the benefits for the State of South Carolina made possible by the U.S.-Taiwan FTA, the State Senate and the State House of Representatives passed resolutions supporting a the U.S.-Taiwan FTA in 2005.
Agribusiness (in particular tobacco and soybeans) is one of the leading industries in South Carolina. Taiwan imports a significant amount of agricultural products from South Carolina and remains the 5th largest importer of U.S. agricultural goods. In 2005, for example, Taiwan 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 South 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.
South Carolina・s other major industries include textiles, chemicals, processed foods, machinery, electronics, paper products and tourism. These industries would also 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 South Carolina 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 South Carolina companies to expand their reach into the Asia-Pacific region. Indeed, Taiwanese companies continue to be leading forces for 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, South Carolina and Taiwan. South 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 South 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 South 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 South 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 South Carolina made possible by the U.S.-Taiwan FTA, we hope that the administration, the Senate and the House of Resentatives of the State of South Carolina will further convey their strong support for the U.S.-Taiwan FTA to the Bush Administration.
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