The US and Taiwan reached an agreement on the first part of their “21st Century” trade initiative. Thus covering customs and border procedures, regulatory practices, and small business, the US Trade Representative’s office said on Thursday (May 18).
USTR announced that after signing the initial agreement of the US-Taiwan Initiative on 21st-Century Trade.
They will commence negotiations on other, more complicated trade areas, including agriculture, digital trade, and labour. Also environmental standards, state-owned enterprises, and non-market policies and practices.
US Trade Representative Katherine Tai said in a statement that the deal strengthens US-Taiwan relations. Also demonstrates they can work together to advance trade priorities for their populations.
“We look forward to continuing these negotiations and finalising a robust and high-standard trade agreement. It tackles 21st Century economic challenges,” Tai said.
Taiwan’s Office of Trade Negotiations in a statement called the agreement “historically significant” . Said Taiwan aimed to finalise negotiations on all remaining issues by the end of the year.
China has reacted furiously to Taiwan President Tsai Ing-wen’s recent engagements with high-ranking US politicians. Thus including an April meeting with US House of Representatives Speaker Kevin McCarthy. The announcement of the trade pact comes just ahead of planned meetings between China’s commerce minister, Wang Wenta, and USTR Tai and US Commerce Secretary Gina Raimondo
US Taiwan Relationship
Proponents say that the pact will not alter goods tariffs. But it will strengthen economic bonds between the US and Taiwan, open the Chinese-claimed island to more US exports. Also increase Taiwan’s ability to resist economic coercion from China.
USTR said the text on customs and trade facilitation will reduce red tape for US firms to export products to Taiwan. Thus allowing for the 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, USTR said.