First batch of Taiwan-US trade agreements signed, continued expansion expected in the future

The first batch of agreements under the Taiwan-U.S. Initiative for 21st Century Trade was signed on June 1 at the headquarters of the American Institute in Taiwan (AIT) in Washington, D.C. by Taiwan’s U.S. Representative Hsiao Bi-khim and Ingrid Larson, executive director of AIT, on behalf of both parties. Minister without portfolio and chief negotiator John Deng of the Executive Yuan’s Office of Trade Negotiations, U.S. Deputy Trade Representative Ambassador Sarah Bianchi, and AIT Chair Laura Rosenberger were on hand to witness the event.

Following the signing, Minister Deng said that the trade agreement is the largest and most comprehensive such negotiation between Taiwan and the United States since 1979, not only marking a historic milestone in economic and trade relations, but also representing a key step towards the negotiation and signing of trade agreements between Taiwan and other major trading nations.

The breakthrough in Taiwan-U.S. trade relations is especially due to the efforts of President Tsai and the successive heads of the Executive Yuan, who have overcome all manner of difficulties and demonstrated Taiwan's strong determination to abide by international norms, as well as the work of government bodies such as the Ministry of Foreign Affairs the Ministry of Economic Affairs. Such results could only have been achieved through the full cooperation of relevant units such as the National Council, the Financial Supervisory Commission, and the Ministry of Labor.

At the signing ceremony, Minister Deng especially thanked the members of the U.S. Congress for their full support in deepening Taiwan-U.S. economic and trade relations, as well as the efforts of the U.S. negotiating team under the leadership of U.S. Trade Representative Ambassador Katherine Tai. He also thanked the various departments of the U.S. government for their efforts in deepening Taiwan-U.S. economic and trade relations, adding that a great deal of flexibility has been demonstrated during the negotiation process, and it is hoped that the teams from both sides can continue to work hard in the future and launch negotiations on various subsequent issues as soon as possible in order to continue to expand and deepen the economic and trade cooperation and mutually beneficial relationship that Taiwan and the United States share.

The Executive Yuan’s Office of Trade Negotiations stated that the first batch of agreements signed included five topics, i.e. customs administration and trade facilitation, good legal practice, domestic regulations in the service industry, anti-corruption, and small- and medium-sized enterprises, plus seven additional agreements that will be negotiated at a future time. Those topics include labor, the environment, agriculture, digital trade, standards, state-owned enterprises, and non-market policies and practices, covering not only emerging economic and trade issues of current international concern, but also content relevant to high-standard trade agreements such as the CPTPP. The successive completion of these negotiations will help promote fair market competition and information transparency, reducing corporate transaction costs and bringing more development opportunities and substantial benefits to small- and medium-sized enterprises. More importantly, this agreement has laid a complete and solid legal foundation for economic and trade exchanges between Taiwan and the United States. In the future, Taiwan and the United States can gradually expand the context of the agreement based on cooperative consensus and common interests, and there is ample opportunity to develop it into a broader free trade agreement.

The Office of Trade Negotiations further stated that the first batch of agreements will enhance the ability of Taiwan's industries, especially small- and medium-sized enterprises, to participate in international economic and trade investment activities, highlighting Taiwan's international integration and capability to implement high-standard trade commitments, which will certainly increase our country's chances to participate in the CPTPP and other regional trade agreements as well as opportunities to negotiate more economic and trade agreements with other countries.

Since the start of negotiations last September, the government has been communicating with the business community and other relevant interested parties, keeping the public fully informed during the various stages of announcing the initiative, starting negotiations, over the course of the negotiations, and when the negotiations have made significant progress. Disclosing and explaining the complete texts to the public before the signing of such agreements is a sign of the government’s dedication to communication and transparency in the area of foreign economic and trade negotiations. The government has strived to communicate the many valuable opinions provided by all walks of life to the negotiation team during the process, and would like to express its deepest gratitude to all involved.