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By Yang Yuan-ting / Staff reporter
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The government should help expand the growth of Taiwan’s Phalaenopsis orchids, also known as moth orchids, to consolidate its competitive position in the US, the Taiwan Orchid Growers Association said.
Moth orchids are Taiwan’s largest agricultural export to the US, but competition from Canada and Latin American countries is intensifying as they are closer to the US and enjoy tariff-free status, the association said.
Taiwan exports orchids to more than 60 countries, with the moth orchid being the most prominent variety and the US its largest market, Ministry of Agriculture statistics show.
Orchids are displayed at the Taiwan International Orchid Show in Tainan last year.
Photo: Hung Jui-chin, Taipei Times
Last year, Taiwan’s moth orchid exports to the US totaled 4,284 tonnes, down 214 tonnes, or 4.7 percent, from 4,498 tonnes in 2024.
Export value declined 10.8 percent from US$61.459 million in 2024 to US$54.794 million last year.
Taiwan used to enjoy tariff-free exports of moth orchids to the US, association secretary-general Tseng Chun-pi (曾俊弼) said.
This, coupled with Taiwan’s advantages in plant breeding research and development capability, made Taiwan’s moth orchids highly competitive in the US market, he said.
However, following the US’ imposition of “reciprocal” tariffs in August last year, and competitors establishing production bases in Canada or Latin America for tariff-free entry into the US and shorter deliveries, the competitive advantage of Taiwanese orchids has deteriorated, he said.
The Executive Yuan on Friday announced that the US has agreed to lower tariffs on Taiwanese goods from 20 percent to 15 percent, without stacking them on existing most-favored-nation rates.
Tseng on Sunday said that although US tariffs on Taiwanese exports have been lowered, costs for exporting Taiwanese moth orchids are still higher than those of competitors.
Deliveries could also be affected by shipping schedules due to strikes or other reasons, posing further risks, he said.
Many orchid growers hope to expand their production in the US, but they are concerned about the high costs there, he said.
As the government is willing to offer Taiwan Sugar Co’s (Taisugar) production base in California to Taiwanese orchid growers to help them, Tsai said the association has submitted a proposal to collaborate with the state-run enterprise in the US.
The association hopes the government would assist Taiwanese orchid growers in transforming their business and expanding supply chains in the US, he said.
In other news, Taiwan Tilapia Alliance chairman Kuo Chien-hsien (郭建賢) said the nation’s main rival in tilapia exports to the US is China.
While the US has imposed a higher tariff on Chinese exports in comparison with Taiwan, Beijing has resorted to large-scale dumping, he said.
The benefits of the lower US tariff on Taiwan, without stacking existing rates, are expected to start emerging this year, he said.
Meanwhile, Taiwan’s edamame exports to the US grew 17 percent last year.
Taiwan Frozen Food Processors Association president Wei Tung-chi (魏東啟) attributed the growth to China — Taiwan’s main competitor — having exited the US market.
The high quality of Taiwan’s edamame gives it an edge to continue expanding market share in the US, he said.
However, China is shifting its edamame export focus and “dumping” its products in Japan — Taiwan’s largest export market — resulting in Taiwanese edamame exports to Japan dropping more than 5 percent last year, he added.
Additional reporting by CNA
