President Bush should initiate a free trade agreement (FTA) with Taiwan, according to a proposed resolution in the House of Representatives.

House Concurrent Resolution 98 (H. Con. Res. 98) says "the United States should increase trade opportunities with Taiwan by launching negotiations to enter into a free trade agreement with Taiwan." The proposed resolution notes that Taiwan is the eighth largest trading partner of the United States and became a member of the World Trade Organization under the name of Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (TPKM) on January 1, 2002.

Representative Jim Ramstad (Republican from Minnesota), a member of the House Ways and Means Subcommittee on Trade, introduced the measure March 18. The proposed resolution was referred to the House Ways and Means Committee and had 29 co-sponsors as of April 14.

108th CONGRESS

1st Session

H. CON. RES. 98

Expressing the sense of Congress relating to a free trade agreement between the United States and Taiwan.

IN THE HOUSE OF REPRESENTATIVES

March 18, 2003

Mr. RAMSTAD (for himself and Mr. JEFFERSON) submitted the following concurrent resolution; which was referred to the Committee on Ways and Means

CONCURRENT RESOLUTION

Expressing the sense of Congress relating to a free trade agreement between the United States and Taiwan.

Whereas for more than 50 years a close relationship has existed between the United States and Taiwan, which has been of enormous economic, cultural, and strategic advantage to both countries;

Whereas on January 1, 2002, Taiwan was officially admitted into the World Trade Organization under the name of Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (TPKM), and this accession will reduce Taiwanese tariffs and begin opening market access to foreign investment;

Whereas on August 6, 2002, the President signed into law H.R. 3009 (Public Law 107-210), the Trade Act of 2002, which provides for an expedited procedure for congressional consideration of international trade agreements;

Whereas the United States is Taiwan's largest trading partner, and Taiwan is the eighth largest trading partner of the United States;

Whereas a recent report issued by the United States International Trade Commission found some sectors of the United States economy would increase significantly in percentage terms (motor vehicles, rice, fish, and other food imports to Taiwan would increase by more than 100 percent) if the United States entered into a free trade agreement with Taiwan;

Whereas the United States is an important supplier of electrical machinery and appliances, transport equipment, scientific instruments, and chemical products to Taiwan;

Whereas the United States is a net exporter of agricultural products to Taiwan, and in 2001 Taiwan was the fifth largest market for agricultural products of the United States in terms of value;

Whereas despite Taiwan's significant importing of agricultural products of the United States, the customs territory still holds a 15.2 percent average nominal tariff rate on agricultural imports from the United States; 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: Now, therefore, be it

Resolved by the House of Representatives (the Senate concurring), That it is the sense of the Congress that the United States should increase trade opportunities with Taiwan by launching negotiations to enter into a free trade agreement with Taiwan.