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Benefits of the US-Taiwan FTA » State by State
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Texas  
Taiwan maintains close economic and trade relations with the U.S. According to U.S. statistics, bilateral trade between the two sides amounted to $61.2 billion in 2006. The value of U.S. exports to Taiwan reached $23 billion, of which Texas accounted for $3.9 billion or 16.9% of U.S. exports to Taiwan, making Texas the 2nd biggest exporter to Taiwan in the U.S. Still, there remain substantial opportunities for Texan companies to expand their business ties and cooperative efforts with Taiwan. In hopes of strengthening economic ties between the U.S. and Taiwan, including business opportunities for Texas, Taiwan has been promoting the signing of a U.S.-Taiwan Free Trade Agreement. If the U.S.-Taiwan FTA is signed, Texan exports to Taiwan willl certainly increase. Furthermore, because of the advanced excellence of Texan industries, the exports to Taiwan in sectors like telecommunications, petrochemicals, semiconductors and medical equipment/devices would be especially increased by the U.S.-Taiwan FTA. Having already recognized the benefits for the State of Texas made possible by the U.S.-Taiwan FTA, the State Senate and the State House of Representatives passed resolutions supporting it in 2005.
Texas is the 2nd largest producer of cotton, grains, corn, soybeans, sugarcane, and vegetables in the U.S. The 2005 Taiwan Agricultural Trade Goodwill Mission visited Texas and eight other agricultural states and facilitated the purchase of 14.5 million metric tons of U.S. grain and 6 million pieces of cattle hides for 2006 and 2007, the total value of which will be around $3.1 billion. A report by the U.S. International Trade Commission on the impact of a U.S.-Taiwan FTA also estimates that U.S. exports to Taiwan of motor vehicles and other foods will increase by more than 100% after the signing of U.S.-Taiwan FTA. As a result, Texan vehicles and beef would likely enjoy immediate benefits from the signing of U.S.-Taiwan FTA through the elimination of tariffs on most agricultural and industrial products and increased Taiwanese demand for U.S. products and services.
Other leading industries in Texas include petrochemical, which ranks first in the nation, as well as the energy, aviation, electronics, biotechnology, medical devices, transportation and environmental sectors. These industries would also benefit from tariff reductions and further liberalization made possible by the U.S.-Taiwan FTA. The U.S.-Taiwan FTA will also create many opportunities for Texas 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 Texas companies to expand their reach into the Asia Pacific region. Indeed, Taiwanese companies continue to be a leading force 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 U.S.-Taiwan FTA would also lead to closer investment and trade relations between the U.S. and Taiwan and, accordingly, Texas and Taiwan. Currently, Taiwanˇ¦s investment in Texas includes various industries such as plastics, chemicals, computer and electronics components, auto parts, petrochemicals, trade, banking, and transportation. The major Taiwanese investors in Texas are Formosa Plastics, Nan Ya Corp., Sino Swearingen Aircraft Company, Continental Carbon Company, Foxconn, Arima, Inventec, HTC, Yang Ming Corp., Evergreen Marine Corp., Eva Air, and China Airlines. Banks operating with Taiwanese capital include Metrobank, New Era Life Insurance, Golden Bank, United Central Bank, American First National Bank and Southwestern National Bank. Without a doubt, Texas plays an important role in Taiwanˇ¦s investment in the U.S. Still, there remains significant potential for Taiwan and Texas to further expand mutual investments. The U.S,-Taiwan FTA would provide the perfect vehicle for them to do so.
The level of trade between the U.S. and Taiwan 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 U.S.-Taiwan trade level is 38 and 50 times greater, respectively. For Texas farming, manufacturing and semiconductor sectors, the strengthening of Taiwanˇ¦s existing relations with the U.S. would translate into real and immediate benefits. In conclusion, it is clear that the signing of U.S.-Taiwan FTA would be good for Texas 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. Given the great benefits to the State of Texas made possible by the U.S.-Taiwan FTA, we hope that the administration, the Senate and the House of Representatives and the private sector of the State of Texas can similarly convey their support for it to the Bush Administration.
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