On the 18th (local time), the United States and Taiwan agreed on the first phase of the US-Taiwan Initiative on Trade in the 21st Century, a bilateral trade initiative. This is the first official trade agreement signed with Taiwan after the inauguration of US President Joe Biden. China’s opposition is expected as it expands cooperation beyond the military and security fields to the economic field.
The U.S. Trade Representative (USTR) announced on its website that “negotiations were concluded led by the U.S. Representative Office in Taiwan (AIT) and the Taiwan Economic and Cultural Representative Office (TECRO).” The signing ceremony will be held in the coming weeks.
The 21st Century Trade Initiative is a consultative body to discuss economic cooperation between the United States and Taiwan. After Taiwan was excluded from the Indo-Pacific Economic Framework (IPEF), in which 13 Indo-Pacific countries participate, the United States pushed for a separate trade agreement between the two countries in June of last year, and after about a year of negotiations, it was the first agreement in some areas. achieved
“This agreement is an important step forward in strengthening US-Taiwan economic cooperation,” said USTR Representative Kathryn Tai.
The agreement covers areas such as customs administration, trade facilitation, good regulatory practice, regulation of domestic services, anti-corruption and small and medium-sized enterprises (SMEs).
With regard to the small and medium-sized business sector in particular, the USTR explained, “If the signing proceeds, the US and Taiwan will further deepen their trade relationship to promote innovation and inclusive economic growth between labor and management.”
The two countries plan to begin discussions soon to conclude negotiations on seven areas: agriculture, labor, environment, standards, state-owned enterprises and digital trade.
Strong opposition from China is expected for this agreement.
Wendy Cutler, deputy director of the Asia Social Policy Institute and former deputy head of the Trade Representative Office, said, “China is likely to express dissatisfaction with this announcement,” but “the United States will not mind.”
Taiwan is the world’s largest producer of computer semiconductors. According to the Associated Press, total exports to the US including semiconductors last year amounted to US$105 billion (approximately 140 trillion won), making it the 10th largest importer of the US. The United States exported $55 billion to Taiwan, making it the 15th largest foreign market.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.