Taiwan is finding ways to close the gap on trade surplus with the US amid President Donald Trump’s renewed tariff wars. According to an energy expert, one way that could be done, is by procuring more natural gas from the US. Currently, a little more than 10% of Taiwan’s natural gas imports come from the US. The expert believes that a smaller trade surplus with the US would be helpful in improving relations with the new US administration.

Wang Shih-chien (Feb. 5)
Lawmaker (DPP)
Our most important ally is the US. We’ve always had smooth channels of communication with the US.

DPP Lawmaker Wang Shih-chien gave the media snippets of what went on during the party’s Central Standing Committee on Wednesday. He said, President Lai Ching-te, also the DPP chair said Taiwan should show the US that the country is willing to “do more and help” with the latter’s trade deficit. Whether through tariffs, investments or procurements, Lai allegedly said the ruling party has smooth channels of communication with the US.

Wang Shih-chien (Feb. 5)
Lawmaker (DPP)
The US hopes we’ll procure more of their natural gas and crude oil. Chair Lai mentioned that we’ve shown goodwill toward the US. We’ve expressed an interest in investing in Alaska, or directly procure Alaskan crude oil and natural gas.

As early as 2018, an Alaskan natural gas extraction company approached the CPC and the two then went on and signed a letter of intent for cooperation. Recently, the Alaskan company found investors, and should be able to start extractions soon. Taiwan currently imports natural gas from 14 countries, with Australia taking the biggest share at 40.21% and Qatar the second largest at 27.88%. Though the US comes third, it only takes 9.83% of the market. Taiwan currently has three long-term deals for natural gas procurement with the US, effective between 20 to 25 years each.

Liang Chi-yuan
Energy expert
Crude oil imports from the US account for 28% among all countries, while it’s only 10% for natural gas, so there should be space for more. Trump believes countries that enjoy a trade surplus with the US are taking advantage of the US, so he’ll pressure them with tariffs. So we should pay attention to energy procurement and improve upon it.

Last year, US imports to Taiwan increased by 13.7% year-on-year, while net exports to the US grew by a whopping 83.5%, making Taiwan a possible target in Trump’s renewed trade war. Procuring energy sources from the US may alleviate some of the pressure.

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