Trusted Technology and Supply Chain Partner
Excellent Candidate for a Bilateral Trade Agreement (BTA)
The U.S.-Taiwan relationship has been its best in decades. From the passage of the Taiwan Relations Act of 1979 to more recent actions such as the visit of the U.S. Health and Human Services Secretary Alex Azar, the Taiwan Travel Act (2018), and the TAIPEI Act (2020), Taiwan appreciates every support from the U.S. Government and Congress. Recognizing Taiwan’s importance the Senate unanimously asked that “the United States Trade Representative should consult with Congress on opportunities for further strengthening bilateral trade and economic relations between the United States and Taiwan.” in the TAIPEI Act. As a faithful strategic and economic ally to the U.S., Taiwan is determined to grasp the opportunity to deepen the ties with the U.S. Taiwan has announced to lift import restrictions on U.S. pork and beef and hope that our actions and determination can pave way for a Taiwan – U.S. BTA.
A Bilateral Trade Agreement (BTA) with Taiwan Is Good for America:
- Taiwan exists as a “beacon of democracy” for the Indo-Pacific, and is a dynamic, indispensable and like-minded partner for the United States in the U.S. Indo-Pacific Strategy.
- Taiwan directly supports American companies in expanding exports and creating jobs.
- As the 7th largest global purchaser of U.S. agricultural products in 2019, Taiwan provides a resilient and growing market for U.S. farmers, ranchers and exporters.
- Taiwan is ready to move quickly to negotiate a high-standard, comprehensive, rules-based, enforceable BTA that will stand as a model for other new or updated agreements in the Indo-Pacific.
Taiwan is ready for a “gold standard” BTA
- Taiwan is ready to match the “gold standard” provisions of the U.S.-Mexico-Canada Agreement (USMCA) and the U.S.-Japan Trade Agreement, including provisions on data localization, intellectual property rights, and state-owned enterprises. Taiwan has a tradition of strong labor and environmental protection, and adheres to ILO conventions and the protection of workers’ rights.
- A BTA will create growth opportunities for U.S. jobs and exports to the benefit of U.S. economic recovery post-COVID-19. Taiwan is committed to cooperating with the United States to find solutions to remaining issues affecting our trade.
Taiwan’s Economic Profile and its Relationship with the United States
- One of the freest economies: Taiwan is ranked as the 11th freest country in the world, ahead of many other advanced democratic countries like South Korea and Germany, according to the Heritage Foundation’s 2020 Index of Economic Freedom.
- Bilateral trade: In the first half of 2020, Taiwan surpassed France and India in total trade volume with the United States to become the United States’ 9th largest trading partner.
- Agricultural trade: Taiwan is the United States’ 7th largest agricultural export market in 2019. The average of U.S. agricultural exports to Taiwan between 2016 and 2019 was $3.57 billion per year. Taiwan is the 6th largest export market for U.S. beef. The United States is also a major supplier of commodities and grain to Taiwan.
- Energy products: The United States is Taiwan’s third largest source of energy imports. Starting in 2020, Taiwan will purchase more than $35.8 billion worth of LNG over the next 25 years, meaning Taiwan will import roughly $1.43 billion worth of LNG annually.
- Complementary economic structure: Taiwanese companies supply top U.S. firms, including Apple, Dell, and Qualcomm, with advanced-technology intermediate goods. Taiwanese companies complement – rather than compete with – U.S. companies, and thus enable the business models and global excellence of American advanced-technology enterprises.
- Job creation, investment and trade: In 2019, Taiwan supported over 373,000 well-paying American jobs through investment from Taiwan-affiliated companies and exports of U.S. goods and services to Taiwan. Taiwan-affiliated firms invested $47 billion in the United States in critical industries such as electronics and information technology, medical products, and innovative plastics.
A U.S.-Taiwan BTA is beneficial to U.S. National Security and Supply Chain Resilience
- Taiwan sits at the center of the Indo-Pacific, atop crucial sea lanes, and offers the U.S. access to a key transportation and strategic hub in the region. As one of the world’s leading producers of ICT, Taiwan provides cutting-edge ICT technology and equipment to meet U.S. needs.
- As the United States and China take different directions in high-tech product lines, the United States can benefit from Taiwan’s firms working more closely with the U.S. technology ecosystem by way of a U.S.-Taiwan BTA which will help secure vital supply chains, and draw Taiwan’s crucial technology capacities closer to the United States.
- The U.S. State Department has designated all five of Taiwan’s largest telecom companies as “Clean 5G” networks, validating Taiwan’s commitment to protect its 5G networks from untrusted vendors and Taiwanese companies’ ability to protect vital telecom networks from malign actors.
- A U.S.-Taiwan BTA will help to pave the way for the United States to reconfigure its global supply chains.