EXECUTIVE ORDER NUMBER 25 (2023)

Establishing a Virginia-Taiwan Trade Office

Importance of Initiative

The United States is Taiwan's second largest trading partner. Virginia's relationship with Taiwan is a meaningful driver of the national partnership, with recent growth in annual product exports from Virginia significantly outpacing that of the broader nation. Furthermore, Taiwan and Virginia share common values, including democratic norms and support of a rules-based world order. According to preliminary analysis undertaken by the Virginia Economic Development Partnership Authority per Senate Bill 1208 and signed into law as 2023 Acts of Assembly Chapter 637 on March 26, 2023, the Commonwealth of Virginia will benefit from the opening of a Virginia-Taiwan Trade Office.

Attracting foreign direct investment (FDI) to the Commonwealth and aiding Virginia companies in selling their products overseas are critical to the economic prosperity of the Commonwealth. Given that Taiwan is a critical partner to Virginia and the United States and shares our commitment to democracy, expanding our trade relationship will strengthen ties on both sides. Taiwan is a significant source of FDI in the United States and their market share of FDI is rising. Taiwan ranks as the fourth fastest-growing source of FDI in the United States. A trade office in Taiwan will build off this foundation and momentum to help bring investment and jobs to Virginia.

FDI in advanced technologies includes the semiconductor ecosystem. A secure semiconductor supply chain is essential to the national security of the United States. Virginia is uniquely poised to excel in the advanced technology sector due to our extensive IT infrastructure, a robust, internationally recognized university system primed to advance key technologies and satisfy growing workforce needs, and the highest existing concentration of tech employees in the United States.

Additionally, international trade plays an essential role in maintaining the vitality of the Virginia economy. VEDP's International Trade programs and the Virginia Department of Agriculture and Consumer Services Office of International Marketing provide direct support to Virginia companies committed to increasing their international export sales as a corporate growth strategy. These services help companies identify potential new markets, develop market entry strategies, and locate possible distributors and representatives for products or services - all at little to no cost to the company.

The Commonwealth and her businesses provide critical computer and electronic products, machinery, agricultural exports such as soybeans, textiles, and more to Taiwan. Increasing opportunities for international trade with Taiwan in these sectors will position Virginia's companies for future success.

The relationship is further supported by the heart of Virginia's economy, the Port of Virginia, whose 6 terminals and extensive multimodal network support the export and import of goods, to and from Virginia and states across the nation. There are over $1 .4 billion in transformative projects underway at the Port, including deepening and widening of the Norfolk Harbor and its channels which will make the Port of Virginia the deepest port on the U.S. East Coast and the only port that will be able to safely handle two-way traffic of ultra-large container vessels. Taiwanese exports through the Port of Virginia saw a 12.5% year-over-year increase in twenty-foot equivalent unit (TEUs) in 2022. The Virginia-Taiwan Trade Office coupled with the historic investments in infrastructure improvements at the Port of Virginia will position Virginia and Taiwan to increase TEUs through the Port and strengthen supply chain relationships.

The existing partnership between Taiwan and Virginia will be further strengthened by the creation of a Virginia-Taiwan Trade Office, and its opening will enable the Commonwealth to better showcase Virginia to prospective investors and businesses, and to further open markets for Virginia products. The establishment of the Virginia-Taiwan Trade Office will be Virginia's fourth international office, in addition to offices in Germany, Japan and South Korea.

Directive

Accordingly, pursuant to the authority vested in me in Article V of the Constitution of Virginia and as the Chief Executive of the Commonwealth, and pursuant to § 2.2- I 03 of the Code of Virginia, I hereby direct and order the Secretary of Commerce and Trade, in collaboration with the Virginia Economic Development Partnership (VEDP), to establish a Virginia-Taiwan Trade Office to serve as the official representation of Virginia in Taiwan and to promote and offer services related to economic development and trade.

Additionally, the Secretary of Commerce and Trade and the Virginia Economic Development Partnership shall submit a plan to implement this directive including the steps, resources, and actions necessary to open a Virginia-Taiwan Trade Office, along with a timeline for opening the office by June 30, 2023. The plan shall also explore services that will promote the Commonwealth's agricultural, industrial, and commercial products and services to Taiwan as well as generate new business opportunities, sales, and investments across various industries serving the interests of residents of the Commonwealth and the people of Taiwan.

Effective Date of the Executive Order

This Executive Order shall be effective upon its signing and shall remain in force and effect unless amended or rescinded by further executive order or directive. Given under my hand and under the Seal of the Commonwealth of Virginia, this 24th day of April, 2023.

/s/ Glenn Youngkin, Governor