May 2001
According to the U.S. Department of Commerce, in 2000 the Republic of China (ROC) on Taiwan was the 7th largest importer of U.S. products, the 7th largest market for U.S. exports（$40.51 billion in Taiwan's exports to the U.S., $24.38 billion in U.S. exports to Taiwan）,and the 8th largest trading partner of the U.S. (behind Canada, Mexico ,Japan , Mainland China, Germany, United Kingdom and Korea). Taiwan had the 6th largest trading surplus with the U.S.(behind Mainland China, Japan, Canada, Germany, and Mexico) at 16.13 billion in 2000, 0.4% higher than in 1999.
I. Bilateral Trade
Although official diplomatic relations between the ROC and the U.S.
suspended in 1979, far from withering, trade and investment relations
between the two countries have thrived. According to the ROC Customs , t
wo-way trade between the countries rose from $7.3 billion in 1978 to $59.95
billion in 2000 ($34.8 billion in Taiwan’s exports to the U.S., $25.1 billion in U.S. exports to Taiwan).
Over the last decade, trade between the U.S. and Taiwan has grown each year
by an average of 4.1%, the average annual increase in Taiwan’s imports from
and exports to the U.S. being 5.5% and 2.7% respectively. The U.S. is Taiwan’s largest export market and the second largest source of imports. In 2000, trade with the U.S. accounted for 20.8% of Taiwan’s trade worldwide.
II. American Job Opportunities
Translating Taiwan’s imports from the U.S. into American job opportunities underscores Taiwan’s importance to the U.S. economy. According to U.S. Commerce Department accounting standards (where every US$ 1 billion of exports creates 17,000 American job opportunities), Taiwan’s imports from the U.S. in 2000 alone accounted for nearly 420,000 jobs created in America. If we use the standard to sum up the total investment in the U.S. by ROC citizens and overseas Chinese, the amount they spent on tourism and study, and Taiwan’s import of U.S. services, Taiwan totally contributed over 800,000 American jobs in 2000; Mainland China’s imports from the U.S. created approximately 300,000 job opportunities.
III. Taiwan: A Bigger U.S. Market than Mainland China
Whereas the Chinese mainland has 58 times the population of Taiwan, and 265 times the land, over the past decade, Taiwan’s imports from the U.S. have exceeded those of the Chinese mainland year after year, averaging 1.6 times those of the mainland. Taiwan was the 7th largest importer of American products in 2000, while Mainland China ranked the 11th.
In each of the last five years, Taiwan has imported from the U.S. an average of
1.03 times as much as the Netherlands has and 1.15 times as much as France.
IV. Trade Surplus with the U.S.
In order to reduce our trade surplus with the United States, an “Action
Plan for Trade with the United States” was implemented from 1988 to 1993, effectively reducing the surplus from $16 billion in 1987 to $6.8 billion in 1993, a total reduction of 57% and an average annual reduction of 10%. The surplus was $9.69 billion in 2000 (Taiwan Statistics).
There is a $6.4 billion discrepancy between the U.S. and Taiwan figures
for 2000. According to the Ministry of Economic Affairs and Ministry of Finance, the possible causes of the discrepancy are as follows: (1)
different bases for calculating the value of goods; (2) factors involving transshipments; (3) differences in the timing of record keeping; (4) differences in exchange rates; and (5) differences in the definition of statistical regions.
V. Taiwan: A Major Overseas Buyer of U.S. Products
Medical Equipment: Taiwan was the 7th largest market for U.S. medical equipment in 1998 as the U.S. sold $160 million worth of related products
to Taiwan. The U.S. was Taiwan's largest source of medical equipment imports , and trade with the U.S. accounts for 40% of Taiwan's total imports.
Automobiles: Taiwan was the 9th largest market for U.S.- made vehicles
in 1999 (behind Canada, Mexico, Germany, Japan, United Kingdom, Belgium, Saudi Arabia and Australia), and 7th largest supplier of automobile parts to the U.S.
Agricultural Products:
(1) Taiwan was the 5th largest market for U.S. agricultural products in 2000 (behind Japan, Canada, Mexico and South Korea), and the U.S. sold $2.13 billion worth of related products to Taiwan. In terms of per capita consumption, Taiwan is the largest consumer of U.S. agricultural products worldwide. Mainland China was the 6th largest market for U.S. agricultural products, the U.S. sold $1.95 billion worth of related products to Mainland China.
(2) In 2000, Taiwan was the largest market in the world for U.S. peaches; the 2nd largest market for U.S. plums, celery and leather；the 3rd largest market for U.S. apples, cherries, broccoli, corn, feed grains & products and alfalfa meal & cubes；the 4th largest market for U.S. pork, feather, lard, asparagus, cabbage, onion , frozen potatoes, canned vegetable and sunflower oil; the 5th largest market for U.S. soybean, beef, cotton, turkey ,dairy product, grape, apple juice, green pepper and lettuce .
(3) Taiwan sent 18 procurement missions to the U.S. between 1978 and 1993. Each of these missions purchased, among other U.S. products, an average of 685,000 tons of American wheat. Since 1993, when restrictions were lifted on private enterprises buying U.S. wheat directly, Taiwan has bought an average of 900,000 tons of wheat per year, more than the procurement missions ever did in any one year. The same holds true for corn and soybean. To demonstrate Taiwan's continuing goodwill and willingness to purchase U.S. agricultural products, Taiwan sent an agricultural goodwill mission to the United States in May 2000, signing letters of intent with U.S. Grains Council, American Soybean Association, and U.S. Wheat Associates respectively, with total purchase of 15.55 million tons, $2.33 billion worth of corn, soybean, wheat and barley. The mission received wide recognition and popularity in the U.S.
Passenger Jets: For the past four years, Taiwan’s airlines have purchased 87 aircrafts (including those awaiting delivery) from the U.S. for nearly $11.4 billion.
According to the statistics by the ROC Civil Aeronautics Administration and airline companies in Taiwan, every week there are over 270 flights (179 passenger flights and 88-90 cargo flights) of service between the U.S. and Taiwan. In comparison, there are only 3 U.S. carriers serving 30 flights per week between U.S. and Mainland China.
Computers and Electronic Products: Taiwan is the 3rd largest producer of information products in the world, and the U.S. is its largest market. Taiwan ranks the 1st worldwide in the production of notebook computer, handheld scanner, motherboard, mouse, keyboard, modem, exchangeable power supply, video card, monitor, flatbed scanner, audio card, network card, graphic card and mainframe. Taiwan is also the world’s 3rd largest manufacturer of semiconductor.
VI. Other Facts about U.S.-Taiwan Trade
U.S. Treasury Notes/Bonds: Taiwan was the 9th largest purchaser of U.S. Treasury Notes/Bonds (behind Japan, United Kingdom, Germany, OPEC, Mainland China, Spain, the Netherlands and Singapore). By the end of May 1998, the government and people of the ROC had purchased $33.3 billion worth of U.S. Treasury Notes/Bonds.
Tourism: The U.S. is the most popular destination outside of Asia, for Taiwan tourists. In 2000, ROC citizens made 651,000 trips to the U.S.,and the Taipei and Kaohsiung offices of the American Institute in Taiwan issued 275,200 non-immigrant visas to ROC citizens, the 2nd largest volume worldwide (behind Korea).
Taiwan Students in the U.S.: Approximately 40% to 45% of ROC citizens studying abroad are in the United States. In the 2000 school year, there were 29,000 Taiwan students studying in the U.S., the 5th largest number from any country (behind Mainland China, Japan, South Korea and India). In 2000, Taiwan students spent more than $800 million in the United States.
Services Trade: According to the U.S. Department of Commerce, in 1998 the United States exported $3.96 billion worth of services to Taiwan and imported $2.91 billion worth of services from Taiwan. The U.S. thus enjoyed a surplus of $1.05 billion.
American Banks in Taiwan: According to the ROC’s Ministry of Finance, in 2000 Citibank was the most profitable among foreign banks in Taiwan, with profits totaling US$255 million.