US, Taiwan reach deal on first part of ‘21st Century’ trade pact
FILE PHOTO: Flags of Taiwan and U.S. are placed for a meeting in Taipei, Taiwan, March 27, 2018. REUTERS/Tyrone Siu
WASHINGTON — The United States and Taiwan reached an agreement on the first part of their “21st Century” trade initiative, covering customs and border procedures, regulatory practices, and small business, the US Trade Representative’s office said Thursday, May 18.
After the initial agreement of the US-Taiwan Initiative on 21st Century Trade is signed, negotiations will commence on other, more complicated trade areas including agriculture, digital trade, labor and environmental standards, state-owned enterprises and non-market policies and practices, USTR said.
US Trade Representative (USTR) Katherine Tai said in a statement the deal strengthens US-Taiwan relations and demonstrates that they can work together to advance trade priorities for their populations.
“We look forward to continuing these negotiations and finalizing a robust and high-standard trade agreement that tackles 21st Century economic challenges,” Tai said.
READ: US, Taiwan to start formal trade talks under new initiative
Article continues after this advertisementThe pact is not expected to alter goods tariffs but proponents say it will strengthen the economic bonds between the U.S. and Taiwan, open the Chinese-claimed island to more U.S. exports, and increase Taiwan’s ability to resist economic coercion from China.
Article continues after this advertisementChina has reacted furiously to Taiwan’s president Tsai Ing-wen’s recent engagements with high-ranking US politicians, including an April meeting with US House of Representatives speaker Kevin McCarthy.
Announcement of the trade pact comes just ahead of planned meetings between China’s Commerce Minister Wang Wentao and USTR Tai and US Commerce Secretary Gina Raimondo.
READ: China opposes US-Taiwan trade initiative
The bilateral talks commenced last August, after the Biden administration excluded Taiwan from its larger pan-Asian trade initiative, the Indo-Pacific Economic Framework.
The USTR said the text on customs and trade facilitation will reduce red tape for US firms to export products to Taiwan, allowing for electronic filing of customs forms and online payment of duties and fees, cutting waiting times for vessels.
The texts on good regulatory practices and services regulation seek to streamline operating licenses for firms seeking to operate across borders and promote fair competition opportunities, the USTR said.
The trade agency added that anti-corruption texts are based on those in the US-Mexico-Canada Agreement on trade and address money laundering, denial of entry for foreign public officials. The small- and medium-sized enterprises text aims to facilitate cross border investment and finance in the sector, the USTR said.
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