|
|
|
Benefits of the US-Taiwan FTA » State by State
|
|
West Virginia  
Taiwan and the United States have enjoyed close economic and strategic relationships for many decades. Reflecting this strong partnership, trade between both countries has increased steadily in the past 40 years or so, with especially marked growth over the past decade. The United States is now Taiwan・s 3rd largest source of imports (after Japan and China), while Taiwan is the 9th largest trading partner of the United States, its 11th largest export market overall and the 5th largest destination for U.S. agricultural products. In 2006, trade flow between Taiwan and the United States totaled $61.2 billion.
In 2006, West Virginia exported a total of $3.22 billion in goods, and exports to Taiwan reached $37 million. The main West Virginia exports to Taiwan include chemicals, primary metal, minerals, wood products, and processed foods. If the U.S.-Taiwan Free Trade Agreement is signed, tariff reductions, the removal of non-tariff barriers and greater trade facilitation will help West Virginia export more products to Taiwan and stimulate the development of West Virginia・s industries. Studies have shown that the economic advantages from an FTA with Taiwan will far exceed those from most FTAs that the U.S. has already signed. This is especially true for West Virginia.
The U.S.-Taiwan FTA will bring immediate and long-term significant benefits to West Virginia. Some industry-specific examples are listed below:
(1) Opening markets for West Virginia・s chemicals and manufactured goods exports: Taiwan can open its market to West Virginia・s chemicals and manufacturing sectors, including resin, synthetic rubber, other synthetic materials and transportation equipment by eliminating duties.
(2) Opening markets for West Virginia・s coal and petroleum: Mining is West Virginia・s 2nd largest industry with over $545 million in sales abroad. The U.S.-Taiwan FTA will secure duty-free access for West Virginia mining products, so that West Virginia can increase the sales of mining products to Taiwan.
(3) Opening markets for West Virginia・s autos and auto parts: The U.S.-Taiwan FTA will increase the number of imported vehicles and secure duty-free status so that U.S. companies can sell more autos and auto parts to Taiwan.
(4) Opening markets for West Virginia poultry: U.S. poultry exports currently face duties as high as 20% on both fresh and frozen products to Taiwan. The U.S. will be the world・s most competitive exporter to Taiwan markets if tariffs are removed. As the top source of state agricultural exports with nearly $16 million in sales abroad, West Virginia poultry exporters will benefit from increased access to Taiwan markets through the U.S.-Taiwan FTA.
(5) Opening markets for West Virginia beef: The category of cattle and calves is the 2nd largest source of farm cash receipts in West Virginia. In Taiwan, the current import duties on U.S. beef are as high as $0.137 per pound. Under the U.S.-Taiwan FTA, duties on beef will be eliminated, so that West Virginia beef exporters can benefit from increased access to Taiwan markets.
(6) Opening markets for West Virginia tobacco producers: In Taiwan, the current import duties on U.S. tobacco are as high as about 20%. West Virginia is the nation・s 14th largest exporter of tobacco, with over $2 million in sales abroad. Under the U.S.-Taiwan FTA, Taiwan・s tariffs on tobacco will be tremendously reduced and West Virginia will gain access to Taiwan・s market.
(7) Opening markets for West Virginia・s fruit and vegetable farmers: Fruit and vegetables represent West Virginia・s 4th largest agricultural export. In Taiwan, the current import duties on U.S. fruit and vegetables are nearly as high as 20%. U.S.-Taiwan FTA will secure duty-free access to Taiwan for West Virginia・s fruit and vegetable farmers, including apples, sweet corn, and some processed vegetables.
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 West Virginia will similarly convey strong support for the U.S.-Taiwan FTA to the Bush Administration.
|
|
|
