Resolution Urging the Presidential Administration to Launch Negotiations for a Free Trade Agreement with Taiwan

Resolution Urging the Presidential Administration to Launch Negotiations for a Free Trade Agreement with Taiwan

Resolution Urging the Presidential Administration to Launch Negotiations for a Free Trade Agreement with Taiwan

Summary

The United States and Taiwan enjoy a robust and longstanding economic partnership. We are Taiwan’s third largest trading partner, and Taiwan is America’s 12th. However, codifying the trade relationship with the negotiation of a formal free trade agreement would enhance our strategic interests in the Asia-Pacific region; encourage greater innovation and manufacturing efficiencies by stimulating joint technological development and new cooperative ventures; and increase exports of US energy to Taiwan given our current energy export policies.

Model Policy

Whereas, the American Legislative Exchange Council (ALEC) policy on free trade acknowledges that, “the imposition of artificial barriers to free and open trade…are deterrents to American economic interests;” and

Whereas, a longstanding, close bilateral relationship, codified in the Taiwan Relations Act, has existed between the United States and Taiwan and has proven economically, culturally and strategically important to both; and

Whereas, Taiwan is a robust democracy, significant American trading partner and important strategic U.S. ally; and

Whereas, together, Taiwan and the United States promote a shared belief in freedom, democracy and market principles; and

Whereas, Taiwan has consistently ranked among the top 12 US trading partners for over two decades; and

Whereas, according to 2012 figures, the United States is Taiwan’s third largest trading partner, and Taiwan is America’s 12th largest trading partner; and

Whereas, a free trade agreement between Taiwan and the United States would build on the existing strong relations between Taiwan and the United States to simultaneously boost Taiwan’s security and democracy and serve the broader interests of the United States in the Asia-Pacific region; and

Whereas, a free trade agreement between Taiwan and the United States would encourage greater innovation and manufacturing efficiencies by stimulating joint technological development, practical applications and new cooperative ventures; and

Whereas, Taiwan has become the world’s largest producer of information technology hardware and ranks first in the production of notebook computers, monitors, motherboards and scanners; and

Whereas, Taiwan is now a member of the U.S. Visa Waiver Program (effective November 1, 2012), reflecting the friendship, trust and cooperation shared between our two democracies and making travel between Taiwan and the United States for business and tourism even more convenient; and

Whereas, Taiwan has expressed a keen interest to participate in the Trans-Pacific Partnership (TPP) in order to forge close economic linkages and enhance competitiveness that would benefit consumers; and

Whereas, Taiwan, as a member of the World Trade Organization, is entitled to the same rights as any other member to enter into free trade agreements with countries of its choosing; and

Whereas, the People’s Republic of China and Taiwan signed the Economic Cooperation Framework Agreement (ECFA) in June 2010; and

Whereas, the People’s Republic of China and Taiwan have opened air transport links with each other; and

Whereas, the European Chamber of Commerce has urged Taiwan to sign a free trade agreement with the European Union; now

Therefore be it resolved, that ALEC supports the negotiation of a free trade agreement between Taiwan and the United States of America; and

Be it further resolved, that ALEC urges the President of the United States to launch immediate negotiations with Taiwan on the establishment of a free trade agreement between our two democracies; and

Be it further resolved, that upon adoption, an official copy of this Resolution be prepared and presented to the President of the United States, to the Chairmen and Ranking members of the U.S. Senate Finance and the U.S. House Ways and Means Committees, to the U.S. Trade Representative, to the Secretary of Commerce, to the Secretary of Labor and to the Director of the Office of Management and Budget.

 

Approved by the ALEC Board of Directors on October 11, 2014.