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Benefits of the US-Taiwan FTA » State by State
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Wyoming  
Taiwan has close economic relations with Wyoming. In 20064, Wyoming exported $3108 million worth of products to Taiwan, making Taiwan Wyoming¡¦s 108th largest export market. Leading exports to Taiwan include chemicals, minerals, machinery, paper products and computer and electronic products. With Wyoming¡¦s exports accounting for a relatively small share of U.S.¡¦ $23 billion total exports to Taiwan, there remain substantial opportunities for growth in Wyoming-Taiwan trade. Accordingly, in the hope of strengthening economic ties between the U.S. and Taiwan, including business opportunities for Wyoming, Taiwan has been pushing for the signing of a Taiwan-U.S. Free Trade Agreement (U.S. ¡V Taiwan FTA).
Agribusiness is important to Wyoming¡¦s economy. In fact, Wyoming has been one of Taiwan¡¦s main sources of wheat, while Taiwan remains the 5th largest importer of U.S. agricultural goods (the U.S. is the largest supplier of agricultural products to Taiwan). The 2005 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, $400 million more than the last purchase agreement signed in 2003. Judging from this trend, it is clear that Wyoming¡¦s agribusiness would enjoy immediate benefits from the signing of TUFTA, which would eliminate tariffs on most agricultural and industrial products and increase Taiwanese demand for U.S. agricultural products.
Other key industries in Wyoming include mining and tourism, though in recent years, the state has also sought to diversity its industries. Under U.S. ¡V Taiwan FTA, both traditional and emerging industries would benefit significantly from increased export opportunities made possible by the tariff reductions and further liberalization provided by the agreement. In addition, the signing of U.S. ¡V Taiwan FTA would lead to closer investment and trade relations between the U.S. and Taiwan. Through joint ventures in certain industries, for example, Taiwan could become a major platform for Wyoming companies to expand their reach into the Asia Pacific region. Currently, only one Taiwanese company, SST Energy Corporation, which runs an oil-drilling business in Casper, has invested in Wyoming. Accordingly, there remains significant potential for Taiwanese enterprises to increase their human and capital investment in Wyoming and vice versa. The U.S. ¡V Taiwan FTA would provide the perfect vehicle for them to do so. 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 Wyoming.
The U.S.¡¦ conclusion of the bilateral FTA negotiations with South Korea on April of 2007 has had a very strong impact on Taiwan and other countries in the region. Both Taiwan and Korea are large and advanced economies. In 2006, Korea and Taiwan were the United States' 7th and 9th largest trading partners. From a commercial perspective, if Korea can offer a huge potential opportunity for the U.S., Taiwan will be able to do so, too. Most Taiwanese products are in head-to-head competition with those of Korea in the U.S. market. We worry that Taiwan will lose out in the U.S. market as soon as the Korea-U.S. FTA comes into effect. Taiwan has a unique geographical location in the Asia-Pacific region and a long-term partnership with the U.S. For our mutual benefits and America¡¦s strategic interests in this region, we therefore hope to launch the negotiation with the U.S. as soon as possible.
As of April 2007, the U.S. ¡V Taiwan FTA proposal has been endorsed by a total of 64 legislatures of 38 states, the Council of State Governments and the National Association of Secretaries of State. Given the great benefits to the State of Wyoming made possible by U.S. ¡V Taiwan FTA, we hope that the administration, Senate and House of Representatives of the State of Wyoming will similarly convey their strong support for U.S. ¡V Taiwan FTA to the Bush Administration.
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