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SECTION THREE • Trade Ties<br />

Los Angeles Metro Area Exports<br />

To Taiwan<br />

Taiwan is the Los Angeles Metropolitan Area’s fifteenth largest<br />

export market based on a recent study completed by the<br />

Brookings Institution entitled Export Nation. The Brookings<br />

report defines the Los Angeles Metropolitan Area as Los Angeles<br />

and Orange counties, includes both goods and services data,<br />

and estimates the value of exports by production location and<br />

not the origin of movement data that the U.S. Census Bureau<br />

produces.<br />

Based on this report, the Los Angeles Metropolitan Area had<br />

exports to Taiwan valued at $1.6 billion, which included $881<br />

million in merchandise exports (goods) and $762 million in<br />

services. The top goods exports were computers and electronics,<br />

chemicals, machinery, transportation equipment and food. The<br />

top services exports were royalties, freight and port services,<br />

travel and tourism, education and business services. The overall<br />

top exports from the Los Angeles Metropolitan Area to Taiwan<br />

were royalties, computers and electronics, chemicals, machinery<br />

and transportation equipment.<br />

The top goods exports category (computers and electronics) is<br />

comprised mainly of semiconductors due to the strong hightech<br />

sector in Los Angeles County. It also highlights the linkages<br />

between local high-tech industries and Taiwan’s ICT expertise.<br />

The second largest goods export, chemicals, is primarily<br />

made up of pharmaceuticals. The third largest goods exports<br />

category (machinery) is mainly comprised of machinery parts<br />

for semiconductor manufacturing due to those same strong<br />

synergies between local high-tech industries and the strength<br />

of Taiwan’s ICT industry. The fourth largest goods export,<br />

transportation equipment, is primarily made-up of civilian and<br />

military aircraft products and parts due to the strong aerospace<br />

base in Los Angeles and Orange counties.<br />

Top Goods Exports<br />

• Computers and Electronics (Semiconductors)<br />

• Chemicals (Pharmaceuticals)<br />

• Machinery (Parts for Semiconductor Manufacturing)<br />

• Transportation Equipment (Aircraft and Parts –<br />

Both Civilian and Military)<br />

• Food<br />

• Royalties from Movies<br />

Top Services Exports<br />

• Freight and Port Services<br />

• Tourism<br />

• Education<br />

• Business Services (Consulting)<br />

According to the U.S. Department of Commerce International<br />

Trade Administration, $1 billion in U.S. exports normally creates<br />

5,000-7,500 jobs. As a result, we can reasonably estimate that<br />

roughly 7,500 to 10,000 jobs are related to the L.A. Metro Area<br />

exports to Taiwan, with about 75% of that total related to Los<br />

Angeles County as 75% of the total exports to Taiwan originate<br />

from Los Angeles County.<br />

The area’s top goods exports to Taiwan are directly related to Los<br />

Angeles’ competitive advantages in high-tech manufacturing as<br />

the manufacturing capital of America. Of the top five goods<br />

exports the Angeles Metropolitan Area has witnessed the<br />

strongest growth in fabricated metal products transportation<br />

equipment and machinery. On the services side of the equation,<br />

movie royalties have experienced the most robust growth rates<br />

over the past few years.<br />

LOS ANGELES COUNTY ECONOMIC DEVELOPMENT CORPORATION 31

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