The American Chamber of Commerce in Taipei said May 16 that the U.S. government should continue fostering stronger ties with Taiwan through mechanisms such as the Trade and Investment Framework Agreement (TIFA) or by forming a new bilateral free and fair trade agreement.
Taiwan and the U.S. have strong economic and trade relations, AmCham Taipei said, adding that American firms operating locally performed well in 2016 and are bullish about investing in Taiwan over the next five years. The chamber’s statement was released in response to calls by the U.S. Department of Commerce for comments to assist with the preparation of an analysis of the nation’s trade deficits.
Taiwan has been identified as one of the trade partners with which the U.S. runs a trade deficit. However, AmCham Taipei pointed out that in terms of goods imported from the U.S. per capita, Taiwan is fifth out of the 13 countries on the list at US$1,110 per person.
According to the chamber, Taiwan also ranks third in terms of the trade deficit’s ratio to total two-way trade in goods—at 20 percent—lower than that of countries in Southeast Asia as well as trade partners such as Ireland, Japan and mainland China. Regarding total trade in goods, AmCham Taipei said, the nation accounts for only 1.58 percent, or US$13.3 billion, of the total deficit of all the countries on the list. According to the chamber, only two other places matter less to the total deficit among these countries.
Taiwan is not only the U.S.’ 10th largest trading partner but also its eighth largest market for exports of intellectual property worldwide, the chamber pointed out.
In response to the U.S. Department of Commerce’s request for comments ahead of its deficit analysis, Taiwan May 9 submitted a report compiled by the Cabinet-level Office of Trade Negotiations. The comprehensive review of two-way trade and future growth prospects concluded that Taiwan and the U.S. enjoy strong and mutually beneficial economic and trade relations, with high levels of supply chain integration boosting the competitiveness of key industries on both sides.
The report also said that Taiwan is not a major exporter of products in which the U.S. has large trade deficits. It concluded that due to the complementary structures of both economies, trade ties have no negative impacts on industrial growth or employment in the U.S. (KWS-E)
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