Following a two-week exchange trip to Taiwan, Carl Marrara, vice president of government affairs at the Pennsylvania Manufacturers’ Association, said the Office of Trade and Investment in Taipei is “bursting with Pennsylvania trade deals,” including the potential for natural gas and specialty food exports.
“There’s a major move away from nuclear, coal, and oil-fired power to natural gas, but they can’t produce any of it on the island,” said Marrara, who was selected to be part of the Mosaic Taiwan Fellowship Exchange Program, sponsored by the Taiwan Ministry of Foreign Affairs. “They need the gas and the infrastructure and currently, they only have several hours in reserve capacity.”
CPC, Taiwan’s state energy firm, announced its third proposed liquefied natural gas import terminal could start operations as early as 2023 with an initial capacity of 1 million tons per year. Taiwan is also one of the world’s largest plastics manufacturers, an industry that relies heavily on natural gas liquids.
The Pennsylvania office, part of the Department of Community and Economic Development (DCED) is also actively working on trade deals involving specialty food items being shipped from Philadelphia to Taiwan due to extensive refrigeration capabilities at the Port of Philadelphia.
“There are some of the largest refrigeration units in the United States at the Port of Philadelphia and with our agricultural and food manufacturing roots, it’s a no-brainer,” Marrara said. “The food culture in Taiwan is unlike any other place I’ve ever visited and they truly embrace Pennsylvania-made food products.”
In 2018, Taiwan was Pennsylvania’s 19th largest trade export partner, between Switzerland and Spain, the U.S. Census Bureau reported. Exports to Taiwan increased more than 10 percent between 2017 and 2018.
“The US and the Republic of China (Taiwan’s official government name) uphold the same values of freedom and democracy and are bonded by their shared commitment to human rights, the rule of law and a free market economy, the resolutions state,” according to resolutions introduced in May to commemorate the 40th anniversary of the enactment of the U.S.-Taiwan Relations Act.
The resolutions, sponsored by Pennsylvania state Sen. Gene Yaw (R-Lycoming) and state Rep. Marcy Toepel (R-Montgomery), noted that Taiwan is Pennsylvania’s seventh-largest export market in Asia.
The state is also home to a growing number of Taiwanese companies and economic opportunities. Foxconn, the world’s largest contract electronics manufacturer, invested in a two-year joint research program with Carnegie Mellon’s Robotics Institute. Kuang Tai Metal Ind. Co., Ltd., a Taiwanese supplier of high-quality welding materials and stainless-steel wire products, established a factory and sales office in Allegheny County.
Additionally, the Taipei Economic and Cultural Representative Office in the United States received approval from the U.S. State Department for a possible $2 billion Foreign Military Sale of M1A2T Abrams tanks to Taiwan. The M8842 recovery vehicle will be built by BAE Systems in York, Pa.
“Air Products [headquartered in Allentown] has a large presence on the island,” Marrara said, highlighting the Pennsylvania companies that currently have a presence in Taiwan. “And West Chester-based Weston Solution, Inc. won a $54.4 million design-build contract from the U.S. Department of State for the American Institute in Taiwan which serves as our de facto embassy and is an incredibly impressive facility. The institute serves as a physical symbol of America’s strong commitment to the people on Taiwan.”