2026 Senate Resolution 111

Whereas, Taiwan and the United States are key partners in trade. The United States is Taiwan’s second largest trading partner, accounting for 18.2% of total trade. In 2025, Taiwan was the United States’ fourth-largest goods trading partner, with bilateral goods trade surpassing $256 billion that year, a large increase over the $158.6 billion in bilateral goods trade in 2024. The United States also engaged in significant trade in services with Taiwan, totaling over $26 billion in 2024; and

Whereas, Taiwan is a particularly important market for U.S. agricultural products. Taiwan imported $3.8 billion worth of U.S. agricultural and related products in 2024 and another $4.3 billion worth in 2025. In 2024, Taiwan was the eight-largest export market for United States agricultural products, counting the European Union as one trading partner. That year, Taiwan was our nation’s fourth-largest export market for fresh fruits and vegetables, our fifth-largest export market for poultry meat and products (excluding eggs), and our sixth-largest export market for beef, corn, and wheat. The United States Department of Agriculture recently led an agribusiness trade mission in Taiwan, with the goal of further expanding market access and boosting U.S. agricultural exports. Due to our nation’s high-quality produce, the United States remains one of Taiwan’s largest sources of agricultural products, accounting for over 20% of the island’s agricultural imports in 2024; and

Whereas, The state of Michigan also does significant business with the island of Taiwan. Taiwan was Michigan’s tenth-largest export market in Asia in 2025, with over $285 million worth of Michigan goods exported to Taiwan that year. Furthermore, in March 2024, the state of Michigan opened the Michigan Taiwan Office to promote further investment by Taiwanese firms in our state. There is great potential for future growth if we continue to deepen our ties with Taiwan; and

Whereas, Although the United States is actively taking steps to strengthen bilateral trade between the United States and Taiwan, more could be done to promote our collective economic growth. On June 1, 2023, representatives of the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (TECRO) signed a first agreement under the U.S.-Taiwan Initiative on 21st-Century Trade. Following the passage of implementing legislation by Congress, the agreement went into effect on December 10, 2024. Progress was made toward a second bilateral trade agreement this year. On February 12, 2026, representatives of the AIT and TECRO signed an Agreement on Reciprocal Trade, which will go into effect once approved by the governments of the United States and Taiwan. While the adoption of these trade agreements is encouraging, an avoidance of double taxation agreement for Taiwan has not yet been enacted, though legislation on this subject was approved in the United States House of Representatives in January 2025. Taiwan also remains excluded from the Indo-

Pacific Economic Framework for Prosperity, an organization that seeks to promote economic growth in the

United States and 13 partner countries; and

Whereas, In conducting business with Taiwan, Michigan businesses should refer to Taiwan as “Taiwan.” In 1979, the United States enacted the Taiwan Relations Act to provide for the continuation of relations between the people of the United States and the people on the island of Taiwan. Section 4(b)(1) of the act provides: “Whenever the laws of the United States refer or relate to foreign countries, nations, states, governments, or similar entities, such terms shall include and such laws shall apply with respect to Taiwan.” Thus, it is legitimate for Michigan businesses to refer to Taiwan as “Taiwan” when conducting business and establishing ties with Taiwan; now, therefore, be it

Resolved by the Senate, That we urge the United States and Taiwan to enter into additional bilateral trade agreements and an avoidance of double taxation agreement; and be it further

Resolved, That we urge the members of the Indo-Pacific Economic Framework for Prosperity to allow Taiwan to participate in their organization; and be it further

Resolved, That we urge all enterprises in Michigan to refer to Taiwan as “Taiwan,” consistent with the Taiwan Relations Act.