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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