Twenty-three Republican members of the U.S. House of Representatives sent a letter to President Joe Biden on Tuesday (March 23) urging the start of negotiations for a formal U.S. free trade agreement (FTA) with Taiwan. The letter was drafted and presented by Republican Rep. Lisa McClain of Michigan.
In the letter, 23 House members ask the Biden Administration to move forward and ultimately submit to the Senate for approval a formal FTA with Taiwan under the U.S.-Taiwan Trade and Investment Framework Agreement. Drafter Lisa McClain (R-AZ) told the U.S. media that a U.S. free trade agreement with Taiwan would not only bring new opportunities for manufacturing and agriculture, but would also allow Taiwan to reduce its dependence on Communist China; it would also demonstrate to allies that the United States is committed to working with its partners in the Indo-Pacific region to counter the growing influence and territorial expansion of the Communist Party of China.
McLean noted that Taiwan has been a staunch U.S. ally against China’s expansion of influence and military power in Southeast Asia since the passage of the Taiwan Relations Act of 1979; a formal free trade agreement with Taiwan would provide significant economic benefits for both sides. For the past several decades, Taiwan’s economic growth has been dependent on Chinese investment, which the Chinese Communist Party has used to expand its influence. A free trade agreement with Taiwan would allow the U.S. to begin countering the CCP’s economic influence in the Indo-Pacific region.
McClain said the announcement of investment in U.S. production by Taiwan’s largest semiconductor manufacturing company would create thousands of well-paying middle-class jobs in the United States, in addition to driving significant indirect investment. The trade agreement would also bring security, which is just as important as the agreement’s promotion of economic development. McLean concluded by urging that as the Biden administration continues its efforts to build trade relationships with countries around the world, please begin formal negotiations on a free trade agreement with Taiwan.
Taiwan is one of the major trading partners of the U.S. In 2020, U.S. merchandise exports to Taiwan totaled more than $68 billion; Taiwan is the 13th largest export partner and the 6th largest agricultural export market for the United States. Taiwan is also a fertile investment ground for many U.S. companies in the technology sector. Taiwan has quickly become one of the world’s major electronics manufacturing centers. Taiwanese companies account for more than 48 percent of total global semiconductor manufacturing, and these companies are looking to expand, invest and take advantage of the untapped workforce in the United States.
Recent Comments