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Benefits of the US-Taiwan FTA » State by State
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South Dakota  
The U.S. and Taiwan have shared a close economic and trade partnership over the years. According to the U.S. Department of Commerce, bilateral trade reached $61.24 billion in 2006, making Taiwan the 9th largest trading partner for the U.S. South Dakota exported $10.99 million worth of merchandise to Taiwan in the same year. South Dakota・s exports to Taiwan encompass a wide range of commodities and industries, including processed foods, mining, and computer & electronics products. Plastic & rubber products. There remain substantial opportunities for South Dakotan companies to expand their business ties with Taiwan. Accordingly, in the hope of strengthening economic ties between the U.S. and Taiwan, including business opportunities for South Dakota, Taiwan has been pushing for the signing of a Taiwan-U.S. Free Trade Agreement .
South Dakota・s farm production reached $5.61 billion in 2005, of which $1.23 billion was generated by exports (18th highest in the U.S.). Meanwhile, Taiwan remains one of the largest importers of U.S. agricultural goods, and the U.S. is Taiwan・s largest supplier of agricultural products. In 2005, a Taiwan 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 the purchase is expected to reach $3.1 billion, or $400 million more than the last purchase agreement, signed in 2003. Judging from this trend, it is clear that South Dakotan 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.
The leading industries in South Dakota are food processing, industrial machinery, lumber and wood products, electronics goods, metal items, precision instruments, and transportation equipment. These industries would benefit from tariff reductions and further trade facilitation made possible by the U.S.-Taiwan FTA. In addition, the signing of the U.S.-Taiwan FTA would also lead to closer investment relations between the U.S. and Taiwan and, accordingly, South Dakota and Taiwan. Both Taiwan and South Dakota have an edge in the high-tech arena. Taiwan・s automotive, electronics, biotechnology, communications, and optical industries are moving forward with their respective global strategies. After the signing of the the U.S.-Taiwan FTA, the elimination of tariffs for materials and components and the liberalization of investment and trade facilitation will make South Dakota even more attractive to Taiwan・s high-tech businesses. the U.S.-Taiwan FTA certainly provides the perfect vehicle 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. For South Dakota・s farming and manufacturing sectors, the strengthening of Taiwan・s existing relations with the U.S. accordingly translates into real and immediate benefits. In conclusion, it is clear that the signing of the U.S.-Taiwan FTA is good for South Dakota 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. We hope that the administration, the Senate and the House of Representatives of the State of South Dakota will similarly convey strong support for U.S.-Taiwan FTA to the Bush Administration to enhance the economic benefits for both South Dakota and Taiwan.
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