Bill Summary – FastDemocracy

HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HM 1357 Inclusion of Taiwan in Indo-Pacific Economic Framework
SPONSOR(S): Roach
TIED BILLS:       IDEN./SIM. BILLS:
    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF
    1) Local Administration, Federal Affairs & Special          16 Y, 0 N               Burgess            Darden
       Districts Subcommittee
    2) State Affairs Committee                                  16 Y, 0 N               Burgess            Williamson
                                             SUMMARY ANALYSIS
Taiwan is an island nation in the western Pacific Ocean, separated from China's southeastern coast by the 99-
mile-wide Taiwan Strait. Following the relocation of the government of the Republic of China to the island in
1949, Taiwan has functioned, in all practical terms, as an independent nation. Taiwan's rapid economic growth
in the decades following WWII transformed the country into an industrialized developed country. The
International Monetary Fund classifies it as an advanced economy, while the World Bank classifies it as a high-
income economy.
In May 2022, the United States launched the Indo-Pacific Economic Framework for Prosperity with Australia,
Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand,
and Vietnam. In June 2022, the United States and Taiwan established the U.S.-Taiwan Initiative on 21st-
Century Trade to explore ways to deepen the economic and trade relationship, advance mutual trade priorities
based on shared values, and promote innovation and inclusive growth for workers and businesses.
The memorial provides historical background of relations between the United States and Taiwan and highlights
Taiwan’s economic aptitude. The memorial urges the United States Department of State to invite Taiwan to
participate in Indo-Pacific Economic Framework for Prosperity negotiations to improve economic collaboration
and prosperity in the Indo-Pacific region.
The memorial directs the Secretary of State to provide copies of the memorial to the President of the United
States, the Secretary of State of the United States, the President of the United States Senate, the Speaker of
the United States House of Representatives, and each member of the Florida delegation to the United States
Congress.
Legislative memorials are not subject to the Governor’s veto powers and are not presented to the Governor for
review. Memorials have no force of law, as they are mechanisms for formally petitioning the federal
government to act on a particular subject.
This memorial does not have a fiscal impact on the state or local governments.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1357c.SAC
DATE: 4/11/2023
                                                        FULL ANALYSIS
                                                I. SUBSTANTIVE ANALYSIS
    A. EFFECT OF PROPOSED CHANGES:
        Present Situation
        Taiwan
        Taiwan is an island nation located in the western Pacific Ocean and is separated from the southeastern
        coast of China by the 99-mile-wide Taiwan Strait.1 Following the relocation of the government of the
        Republic of China to the island in 1949, Taiwan has functioned, for all practical purposes, as an
        independent nation.2
        Taiwan's rapid economic growth in the decades after World War II has transformed it into an
        industrialized developed country. It is categorized as an advanced economy by the International
        Monetary Fund and as a high-income economy by the World Bank. Its advanced technology industry
        plays a key role in the global economy. Taiwanese companies manufacture a large portion of the
        world's consumer electronics, although most of them are now made in their factories on mainland
        China.3
        Indo-Pacific Economic Framework for Prosperity
        In May 2022, the United States launched the Indo-Pacific Economic Framework for Prosperity (IPEF)
        with Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines,
        Singapore, Thailand, and Vietnam.4
        The framework intends to advance resilience, sustainability, inclusiveness, economic growth, fairness,
        and competitiveness for the economies of partner nations. Through this initiative, the IPEF partners aim
        to contribute to cooperation, stability, prosperity, development, and peace within the region. The
        framework offers tangible benefits that fuel economic activity and investment, promote sustainable and
        inclusive economic growth, and benefit workers and consumers across the region. The 14 IPEF
        partners represent 40 percent of global gross domestic product and 28 percent of global goods and
        services trade.
        The framework is intended to lead to discussions on four key issues identified as “pillars”: (1) Trade; (2)
        Supply Chains; (3) Clean Energy, Decarbonization, and Infrastructure; and (4) Tax and Anti-Corruption.
        The IPEF is designed to be flexible, meaning that IPEF partners are not required to join all four pillars.
        Taiwan has voiced its desire to be a “full member” in the IPEF. 5 Additionally, in May 2022, a bipartisan
        group of over 50 United States Senators sent a letter to President Joe Biden regarding the
        administration’s potential inclusion of Taiwan as a partner in the IPEF.6 Similarly, in March 2022, the
        Taiwan Caucus led a bipartisan group of 200 U.S. Representatives to send a letter to Commerce
1 Encyclopedia Britannica, Taiwan, https://www.britannica.com/place/Taiwan (last visited Mar. 27, 2023).
2 Government of Taiwan, History, https://www.taiwan.gov.tw/content_3.php (last visited Mar. 27, 2023).
3 BBC Monitoring, Taiwan country profile, https://www.bbc.com/news/world-asia-16164639 (last visited Mar. 24, 2023).
4 Office of the United States Trade Representative, Indo-Pacific Economic Framework for Prosperity (IPEF), https://ustr.gov/trade-
agreements/agreements-under-negotiation/indo-pacific-economic-framework-prosperity-ipef (last visited Mar. 24, 2023).
5 Ben Blanchard and Jeanny Kao, Taiwan seeks Indo-Pacific Economic Framework membership with U.S., Reuters (April 19, 2022),
https://www.reuters.com/world/asia-pacific/taiwan-seeks-indo-pacific-economic-framework-membership-with-us-2022-04-19/ (last
visited Mar. 24, 2023)
6 Foreign Relations Committee, Risch, Menendez Lead 50 Colleagues in Letter to POTUS Championing Taiwan’s In clusion in
Proposed Indo-Pacific Economic Framework (IPEF), https://www.foreign.senate.gov/press/rep/release/risch-menendez-lead-50-
colleagues-in-letter-to-potus-championing-taiwans-inclusion-in-proposed-indo-pacific-economic-framework-ipef (last visited Mar. 24,
2023).
STORAGE NAME: h1357c.SAC                                                                                                      PAGE: 2
DATE: 4/11/2023
         Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai expressing their support for
         Taiwan’s inclusion in IPEF.7
         U.S.-Taiwan Initiative on 21st Century Trade
         In June 2022, the United States and Taiwan established the U.S.-Taiwan Initiative on 21st-Century
         Trade to develop ways to deepen the economic and trade relationship, advance mutual trade priorities
         based on shared values, and promote innovation and inclusive growth for workers and businesses. 8
         Effect of the Memorial
         The memorial provides historical background of relations between the United States and Taiwan and
         highlights Taiwan’s economic aptitude. The memorial urges the United States Department of State to
         invite Taiwan to participate in IPEF negotiations to improve economic collaboration and prosperity in
         the Indo-Pacific region.
         The memorial directs the Secretary of State to provide copies of the memorial to the President of the
         United States, the Secretary of State of the United States, the President of the United States Senate,
         the Speaker of the United States House of Representatives, and each member of the Florida
         delegation to the United States Congress.
         Legislative memorials are not subject to the Governor’s veto powers and are not presented to the
         Governor for review. Memorials have no force of law, as they are mechanisms for formally petitioning
         the federal government to act on a particular subject.
    B. SECTION DIRECTORY:
         Not applicable.
                             II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
    A. FISCAL IMPACT ON STATE GOVERNMENT:
         1. Revenues:
             None.
         2. Expenditures:
             None.
    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
         1. Revenues:
             None.
         2. Expenditures:
             None.
    C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
         None.
7 Mario Diaz-Balart, Taiwan Caucus Urges Commerce, USTR to Include Taiwan in the Indo -Pacific Economic Framework ,
https://mariodiazbalart.house.gov/media-center/press-releases/taiwan-caucus-urges-commerce-ustr-include-taiwan-indo-pacific-
economic (last visited Mar. 24, 2023).
8 U.S. Department of State, Marking One Year Since the Release of the Administration’s Indo -Pacific Strategy, available at
https://www.state.gov/marking-one-year-since-the-release-of-the-administrations-indo-pacific-strategy/ (last visited Mar. 24, 2023).
STORAGE NAME: h1357c.SAC                                                                                                         PAGE: 3
DATE: 4/11/2023
   D. FISCAL COMMENTS:
       None.
                                              III. COMMENTS
   A. CONSTITUTIONAL ISSUES:
       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. This memorial does not appear to affect county or municipal governments.
       2. Other:
          None.
   B. RULE-MAKING AUTHORITY:
       The memorial neither authorizes nor requires executive branch rulemaking.
   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.
                           IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
       None.
STORAGE NAME: h1357c.SAC                                                                             PAGE: 4
DATE: 4/11/2023