Resolution Urging the Presidential Administration to Sign Bilateral Investment Agreement with Taiwan
Model Policy Summary
The U.S.-Taiwan relationship has been characterized by increasing economic investment and democratic liberties. Together, the United States and Taiwan have effectively joined forces to increase both the level of cooperation and trust between the two countries. While Taiwan maintains normal trade relations status with the United States and ready access to U.S. markets, further opportunities for economic growth and development exist. As such, this resolution, in keeping with the American Legislative Exchange Council’s (ALEC’s) principle of expanding free markets, calls for the formation of a Bilateral Investment Agreement between the United States and Taiwan.
Whereas, Taiwan and United States are long-standing friends with a shared historical relationship and dearly cherished values of freedom, democracy, and human rights; and
Whereas, Taiwan is a robust democracy, significant American trading partner and important strategic U.S. ally; and
Whereas, the United States ranks as Taiwan’s third largest trading partner, Taiwan is the 11th largest trading partner and 16th largest export market of the U.S.; and
Whereas, In 2012, investment in Taiwan by the U.S. has accumulated to 285 cases with a value of $402 million, accounts for 7.25% of Taiwan’s FDI, making the U.S. the 3rd largest source of FDI; and
Whereas, Taiwan is the world’s eighteenth largest economy, one of the key trading partners of the United States, and the two-way trade volume between the United States and Taiwan reached 63.2 billion dollars in 2012; and
Whereas, a Bilateral Investment Agreement between Taiwan and the United States gives investors in both economies greater assurances that the capital they are putting at risk in each other’s market will be adequately protected; and
Whereas, a Bilateral Investment Agreement between Taiwan and the United States would not only provide protection to both sides’ investors but also requires more open and liberal markets; 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 countries, and making travel between Taiwan and United States for business and tourism even more convenient; and
Whereas, Negotiations for a Bilateral Investment Agreement (BIA) between Taiwan and the United States are an important step towards strengthening bilateral trade and paving the way for entering into a Free Trade Agreement (FTA) between our countries; and
Whereas, President Barack Obama and the leaders of eight Trans-Pacific Partnership (TPP) countries announced the achievement of the broad outlines for a 21st century TPP agreement on November 12, 2011, and Taiwan has expressed a keen interest to participate, so as to forge close linkages among economics, enhance competitiveness, and benefit consumers; and
Therefore be it resolved, that the commonwealth/state of [INSERT STATE] supports the signing of a Bilateral Investment Agreement between Taiwan and the United States of America; and
Be it further resolved, that the commonwealth/state of [INSERT STATE] urges the President of the United States to launch immediate negotiations with Taiwan on the establishment of a Bilateral Investment Agreement between our two democracies.
Approved by the ALEC Board of Directors on September 29, 2013.