US Taiwan Free Trade Agreement
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 14th largest importer of U.S. goods. In 2019, the U.S. imported $54.25 billion from Taiwan and exported $31.2 billion in goods to Taiwan. Top export categories included computer and electronic products, non-electrical machinery, oil and gas, and transportation equipment. The U.S. is Taiwan’s sixth largest trading partner and a key destination for Taiwanese investors. Taiwan affiliated firms invested $25.59 billion in the U.S. in 2015.
“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 $7.19 billion to Taiwan in 2019. Top categories included non-electrical machinery, computer and electronic products, transportation equipment, and waste and scrap. California has the second highest amount of exports to Taiwan within the U.S. and Taiwan is the seventh largest importer of California goods and services, the fifth largest in Asia. California received $6.3 billion in investment from Taiwan in 2015. Of the 89,117 total jobs in California supported by Taiwan, 37,493 jobs were supported by investment from Taiwan affiliated companies, 41,289 were supported by exports of goods to Taiwan, and another 10,335 jobs were supported by exports of services to Taiwan. 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