Special Report
Fair Trade for Taiwan — and America
An idea that should appeal to U.S. automakers and Democratic congressmen alike.
Detroit could have sold an additional 600,000 more cars each year since 2004 if the U.S. had agreed to a “Free Trade Agreement” with Taiwan.
How? The Institute for International Economics looked at Taiwan’s auto market and judged that a tariff-free FTA with Taiwan would have netted U.S. automakers that many more sales annually because Taiwan was willing to abolish its auto imports tariff quotas.
U.S. office equipment makers, rice farmers, pork and poultry producters would have netted similar sales jumps.
Taiwan’s leaders in 2004 were desperate to get a formal trade pact with the U.S. because they were being slowly strangled by China and begged for a formal FTA link with the U.S. to counter Chinese pressures. The Bush Administration rebuffed Taiwan in a misguided “favor” to China.
Taiwan doesn’t need an FTA with Washington to remain competitive in our market. Rather, it is fighting for its diplomatic life. Much like Germany’s claims in 1938 that Austria and Bohemia were “German,” China demands international recognition of its territorial demands on Taiwan, which has been independent of China since 1949 and never ruled by Communist Beijing. China’s diplomatic “blockade” of Taiwan has grown tighter as China’s economic power swells.
Taiwan’s population is bigger than Australia’s; its economy bigger than any other Southeast Asian country’s. It’s America’s tenth-largest export market; and a strategic supplier of semiconductors and information technology equipment. It makes no sense for the U. S. to allow China to absorb Taiwan. To do so would tell the world we can no longer defend our interests in Asia.
In this dangerous environment, Taiwan’s leaders sought an FTA with us in 2004 — at any price. Taiwan would open all its markets, and we didn’t have to do much, for it already had nearly free access to our markets.
Bush trade experts, not considering Detroit’s problems, said the U.S. didn’t need an FTA. Besides, the Bush people claimed they were “working on” other key trade agreements and didn’t have time for Taiwan — the “partners” being Jordan, Morocco, Colombia, Central America, sub-Saharan Africa, whose combined trade with the U.S. totaled less than a quarter of Taiwan’s.
Now, as Taiwan’s economy becomes more tightly bound with China’s, the U.S. has one last chance to make openings in Taiwan’s market for U.S. autoworkers, office equipment manufacturers, and agricultural products before Beijing manages to turn one of America’s top export markets into a colony.
This doesn’t involve opening our market more to Taiwan imports; it doesn’t give Chinese products a duty-free “backdoor” into the U.S. Actually, Taiwan’s wage structures, organized labor laws, environmental and social security laws are as tight — or tighter — than ours.
Can a Democratic Congress, skeptical of “Free Trade Agreements,” warm to yet another “FTA”? Yes. Democrats aren’t against “free trade,” but unfair trade which, like the ill-negotiated U.S.-Korea FTA, offered lopsided tariff benefits to foreigners.
Congressional Democrats would support an “FTA” that was a “Fair Trade Agreement,” leveling the playing field in labor, environment, and global warming competitiveness, while opening a foreign market to as great access as that market has here.
They can have one with Taiwan. Congress should look into a U.S.-Taiwan “Fair Trade Agreement” that does all the things Democrats need to protect U.S. workers and farmers, in return for which Taiwan gets an enhanced strategic relationship with the U.S. to serve as a bulwark against a Chinese stranglehold on Asian economies.
Democrats can then point to this new fair-trade FTA as the “gold standard” by which all future U.S. FTAs will be measured.
No Obama Administration trade official, and no future U.S. administration, would then dare bring another FTA to Congress or the public that did not meet this standard. It would serve notice that the U.S. isn’t going to be pushed around on trade; that all must meet these new standards in order to compete unfettered in the U.S. It would enhance U.S. export sales and give a small democracy in Asia a new lease on life.
Letter to the Editor View all comments (93) | Leave a comment
Related Articles
More Articles From Special Report
http://spectator.org/archives/2009/11/16/fair-trade-for-taiwan-and-amer
Follow us:
ADVERTISEMENT
Current Issue
- Self-Righteous Republic
- Ailes: A Voice for the Silent Majority
- Consternated Conferences
SPONSORED LINKS
FLASHBACK TO: 1995
-
Pope Culture
A man of faith in a godless age is hitting Americans where it hurts.
-
Why the GOP Does Not, Like, Totally Suck
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
-
Dames at Sea
-
In the Absence of Guns
In Britain, defending your property can get you life.
-
The Metaphysical Martini
-
Counting the Costs of Clintonism
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
-
Chuck McHagel
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
-
The Legacy of Old John and Mother Fresh-Roasted
-
It’s the Best Time of the Year
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
-
The Bush Crack-Up
Was the President done in by the economy, or by the politics of the economy?
Clip of the Day
ADVERTISEMENT
Pingback| 11.16.09 @ 7:57AM
The American Spectator : Fair Trade for Taiwan — and America | Drakz News Station links to this page. Here’s an excerpt:
Pingback| 11.16.09 @ 8:53AM
The American Spectator : Fair Trade for Taiwan — and America | China Today links to this page. Here’s an excerpt:
Pingback| 11.16.09 @ 10:22AM
The American Spectator : Fair Trade for Taiwan — and America | Drakz News Station links to this page. Here’s an excerpt:
Dixie Pixie| 11.16.09 @ 11:25AM
A “Fair Trade with Taiwan Act” would be a conduit for moving Chinese goods around Chinese tariff restrictions. A more honest policy would be to treat Taiwan as a separate country with the tariffs settled case by case.
Pingback| 11.16.09 @ 11:49AM
The American Spectator : Fair Trade for Taiwan — and America | austriatoday links to this page. Here’s an excerpt:
Pingback| 11.16.09 @ 2:07PM
The American Spectator : Fair Trade for Taiwan — and America | Colombiat oday links to this page. Here’s an excerpt:
Pingback| 11.16.09 @ 2:07PM
The American Spectator : Fair Trade for Taiwan — and America | Colombiat oday links to this page. Here’s an excerpt:
Pingback| 11.17.09 @ 2:32PM
Twitter Trackbacks for The American Spectator : Fair Trade for Taiwan -- and America links to this page. Here’s an excerpt:
Pingback| 11.20.09 @ 2:55AM
The American Spectator : Fair Trade for Taiwan — and America | Drakz News Station links to this page. Here’s an excerpt:
abass | 12.16.09 @ 8:10AM
2. The Center for Media Research has released a study by Vertical Response that shows just where many of these ‘Main Street’ players are going with their online dollars. The big winners: e-mail and social media. With only 3.8% of small business folks NOT planning on using e-mail marketing and with social media carrying the perception of being free (which they so rudely discover it is far from free) this should make some in the banner and search crowd a little wary.
onlineuniversalwork
Sertw| 3.1.10 @ 3:18PM
The big winners: e-mail and social media. With only 3.8% of small business folks NOT planning on using e-mail marketing and with social media carrying the perception of being free (which they so rudely discover it is far from free) this should make some in the banner and search crowd a little wary. pennis enlargment surgery and steps to enlarge penis
David| 3.18.10 @ 12:04PM
This is a huge loss for US, FTA could be a great deal for US.I hope US will look into the agreement with Taiwan in future.
David,
best business cards
alex | 3.26.10 @ 7:16AM
This is a huge loss for US, FTA could be a great deal for US.I hope US will look into the agreement with Taiwan in future.
holiday working insurance | 3.26.10 @ 11:50AM
It is all about USA, Taiwan and China. Now Tibet plus some free trade contract. too much things
www.us-bapeoutlet.com | 4.3.10 @ 9:22PM
www.us-bapeoutlet.com
www.sunglass-mall.com | 4.3.10 @ 11:26PM
You won't have to worry about having your sunglass merchandise to gather dust on its display racks waiting for the summer season to commence www.sunglass-mall.com
Robert| 5.5.10 @ 1:08PM
Dam manufacturing outside of the US, it's hurting our industry and losing American Jobs.
Shelly | 6.17.10 @ 12:57PM
I'm really fed up with all of this offshore movement of US jobs. When will it end? Do we all have to lose our jobs first?
Vicky | 10.31.10 @ 4:05AM
It seems like int he long run China will win. It has been exploding as an economic giant and has opened its trade to all parts of the world. Curtailing Taiwan from US would speed up China's interest over Taiwan and holding on to this will cause America to suffer much. China has not only taken over the market in the whole of Asia but also of Europe and many other parts of the world.
Ben | 10.31.10 @ 4:45PM
I cannot state anything under this..
It's all political..
adelgazar | 11.28.10 @ 6:08PM
I think a better strategy for Taiwan will be closer ties with the mainland. They already have an economic agreement with China that will open up trade further with other asian partners.
The recent elections in Taiwan confirm that the taiwanese people want better cooperation with the mainland.
baby monitors with camera | 12.11.10 @ 9:34AM
Hi,
Really interesting article. In these difficult times the US needs to do all that it can to remain competitive and increase exports.
Ann
Natalie Dember | 2.17.11 @ 12:06PM
Good Analysis .
Taiwan and China is a low cost labor export country.
they are a export country rather than importing.
I think China have a " fair trade aggreement" with America.
Used Tires | 3.24.11 @ 9:39PM
Taiwan and China is a low cost labor export country.
they are a export country rather than importing.
I think China have a " fair trade aggreement" with America. ---> I can agree to that! +1
Business Plan Download | 6.8.11 @ 6:22AM
So I just realize that Detroit have sold an additional 600,000 more cars each year? What's about now? Does the Japan car come to more attract?
como quemar grasa corporal | 6.16.11 @ 2:15AM
Great post. I really enjoyed
Thank you
bowflexhomefitness.com | 6.23.11 @ 8:30PM
China is good exporting country and good quality but more client want to go US to buy some cars and and good price
recargas en linea | 7.27.11 @ 3:37AM
Taiwan is the best producer, but i think that his method os production are the worst.
Thanks.
johncarcar | 7.28.11 @ 7:50AM
Castles n camera Productions is a Jaipur based Shooting Handlers in Rajasthan having base at Jaipur and regular offices at Udaipur , Jodhpur , Jaisalmer , Bikaner , Mandawa & Pushkar .
http://www.rajasthanshooting.com/
stacey schiller | 10.18.11 @ 5:50AM
I don't wanna say anything here. People get crazy these days when they hear about usa. We all know why is that. atlanta property management
Stitch | 11.2.11 @ 7:37AM
Good Analysis and good job. Its very interesting for me. Thank you.