ITC: U.S.-TAIWAN FREE TRADE AGREEMENT WOULD RAISE BILATERAL TRADE
A U.S. International Trade Commission report found that a free trade agreement struck between the United States and Taiwan would increase the movement of goods and services between the countries.
Taiwan’s average tariff rate on goods is about 7.1 percent, while the United States tariff is about 2.8 percent. Both economies maintain a number of tariff-rate quotas, particularly in the agricultural sector.
“It is estimated that both economies would likely experience relatively small economy-wide effects from a FTA (free trade agreement),” the ITC said. “However, some sectoral trade flows would increase substantially.”
The ITC pointed out that U.S. exports of motor vehicles, rice, fish and other foods would more than double to Taiwan under free-trade conditions. Similarly, U.S. imports from Taiwan for dairy, textiles, wearing apparel, leather and certain crop commodities would also increase by more than 100 percent.
The full report, “U.S.-Taiwan FTA: Likely Economic Impact of a Free Trade Agreement Between the United States and Taiwan,” will be available on the ITC’s Web site: http//:www.usitc.gov.