US Taiwan Free Trade Agreement
U.S.-Taiwan Initiative for 21st Century Trade
U.S., Taiwan Strengthen Ties at Inaugural Trade Meeting in Washington
CalChamber, June 28, 2022
United States and Taiwan Hold Inaugural Meeting of the U.S.-Taiwan Initiative on 21st-Century Trade
U.S. Trade Representative, June 27, 2022
U.S.-Taiwan Free Trade Agreement
The Ministry of Economic Affairs of Taiwan has prepared a position paper document (see below) to promote the signing of a free trade agreement with the United States, involving R&D, cooperation and technology transfer. A study conducted by the U.S. International Trade Commission in October, 2002 concluded that a U.S. Taiwan FTA would substantially benefit U.S. exports of motor vehicles, rice, fish and other food, but would have a small impact on the U.S. economy overall. China has recently overtaken the United States as Taiwan’s largest export market.
Taiwan is the 11th largest importer of U.S. goods. In 2021, the U.S. imported $77.13 billion from Taiwan and exported $36.94 billion in goods to Taiwan. Top export categories included computer and electronic products, non-electrical machinery, oil and gas, and chemicals. The U.S. is Taiwan’s second largest trading partner and a key destination for Taiwanese investors.
US FDI in Taiwan was $31.54 billion in 2020, while Taiwanese FDI into the US was $19.68 billion in the same year. In 2020, Taiwan was the 9th fastest growing source of FDI into the U.S. Taiwanese FDI in the US supported 21,000 jobs through workers employed by US Affiliates of majority Taiwan-owned firms and $178 million in research and development in 2019. Taiwan also contributed $1.5 billion to expanding US exports. The top industry sectors for Taiwanese FDI were: semiconductors, communications, business machines, software and IT services, electronic components, and transportation. Select USA
Taiwan supports an estimated 323,456 jobs in the United States through trade and investment from Taiwan affiliated companies, exports of US goods and/or services to Taiwan, almost 90,000 of these jobs can be found in California.
“Shortly after the USMCA vote, a bipartisan group of 161 lawmakers sent Lighthizer a letter urging him to work toward starting negotiations with Taiwan. Reps. Steve Chabot (R-Ohio), Albio Sires (D-N.J.), Mario Diaz-Balart (R-Fla.), and Gerry Connolly (D-Va.) led the effort. There was no immediate USTR response.” (Politico)
California exported over $8.94 billion to Taiwan in 2021. Top categories included computer and electronic products, transportation equipment, waste and scrap, and chemicals. California has the second highest amount of exports to Taiwan within the U.S. and Taiwan is the sixth largest importer of California goods and services, the fourth largest in Asia.
In California, Taiwan is the eleventh largest source of FDI through foreign-owned enterprises (FOEs). In 2020, Taiwanese FOEs in California provided 17,493 jobs through 409 firms amounting to $1.55 billion in wages. The top jobs by sector are: wholesale trade, manufacturing, professional/business services, transportation/warehousing/utilities, and other services (World Trade Center Los Angeles FDI Report, June 2021). Several Taiwan-affiliated companies in California are CalChamber members such as: Delta Products Corporation, Kingston Technology, and Super Micro Computer.
US Trade Talks a Boon for Taiwan
Taipei Times, September 7, 2020
There’s No Better Time for Taiwan to Seal a Trade Deal with the US and Bolster its Economy
South China Morning Post, September 4, 2020
Taiwan and US Move Closer to Bilateral Trade Agreement
Nikkei Asian Review, September 1, 2020
Taiwan’s Removal of Restrictions on U.S. Exports of Beef and Pork
U.S. Trade Representative, August 28, 2020
Taiwan-US Pact Would Set Stage for Post-Virus Economy
OA Online, August 23, 2020
Taiwan to Seek Closer Security Ties, Trade Agreement with U.S.: Tsai
Focus Taiwan, August 13, 2020
Taiwan Seeks to Start Free-Trade Talks With U.S.
The Wall Street Journal, August 12, 2020
Trade, Security Among Top Priorities for New Taiwan Envoy to U.S.
Focus Taiwan, August 4, 2020
Trading Partner Portal
- http://export.gov/FTA/index.asp (U.S. government informational website)
- Turning Friendship into Partnership – A Proposed Free Trade Agreement Between Taiwan and the United States – 5/2005