Taiwan's Economy and a U.S.-Taiwan Free Trade Agreement

Transcript

DEPUTY MINISTER SHIH YEN-SHIANG: Over the past 50 years, Taiwan has grown from a poor country into a prosperous society, which it achieved with the help and commitment of the U.S. government and people. In 1952, Taiwan's per capita GDP was a mere $1,096. All foreign trade was only $300 million. However, by the year 2006, our per capita GDP had swelled to $16,000 and all foreign trade topped $427 billion and all foreign reserve exchanges accumulated to be $266 billion.

Of course, as you know, Taiwan also became a democratic and modern society. In the year 2002, Taiwan joined the WTO as its 144th member. Taiwan has been a member of APEC since 1991, and now Taiwan is an observer in the OECD steel and the fisheries committees. Our participation in these organizations owes much to U.S. support. Thanks for the American support.

In 2006, Taiwan's foreign trade reached $427 billion, and GDP grew by 4 percent. Taiwan enjoyed the third highest trade surplus reaching $21.3 billion in the year 2006, and our trade surplus tipped in 2003 at $22.6 billion. Last year, Taiwan attracted a large amount of foreign investment, the highest in its history, and an increase of 23 percent over 2005. Our unemployment rate as of December 2006 was 3.8 percent. Meanwhile, Taiwan held bilateral economic consultations in 2006 with the U.S., U.K., Japan and other countries.

In the area of free trade agreements, Taiwan signed its first FTA with Panama in 2004. Similar arrangements were signed with Guatemala and Nicaragua in 2006, and we just completed negotiations on signing of free trade agreements with El Salvador and Honduras last November. These countries are in Central America and are close allies of the United States. Overall, 2006 for Taiwan was quite good.

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