Taiwan and the U.S. jointly issued a press release this Tuesday to announce that the first agreement under the Taiwan-US 21st Century Trade Agreement is officially in effect. The agreement was first signed by representatives of the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office (TECRO) in the U.S. on June 1, 2023.
The first agreement encompasses five issues, including customs administration and trade facilitation, legal operations, domestic regulations for the service industry, anti-corruption, and small and medium enterprises. Negotiations on the remaining topics in the agreement, which cover areas such as labor, environment, and agriculture, are ongoing.
U.S. Trade Representative Katherine Tai referred to this as an important step in strengthening economic and trade relations between the U.S. and Taiwan. The U.S. Congress had further formulated a law to ensure the agreement could be implemented on a stable legal basis, with the TECRO obtaining authorization from U.S. President Joe Biden in August. The TECRO stated that the signing of the agreement was met with unanimous recognition and support from both sides.
Moving forward, Taiwan and the U.S. will create committees on trade facilitation and other issues, establish a liaison mechanism with small and medium enterprises, and strengthen institutionalized operations between the two nations.
Premier Cho Jung-tai (卓榮泰) on Tuesday emphasized that this marks an important milestone for Taiwan-U.S. relations. He said Taiwan will continue working with industry and the public to establish markets worldwide. Cho said he believes these developments will continue to foster international relationships in the future.
General Chamber of Commerce of the Republic of China Chairman Hsu Shu-Po (許舒博) pointed out that while the agreement enables special treatment in automation and customs clearance, he also hopes the Free Trade Agreement can be signed as soon as possible, as tariffs are the largest factor affecting world trade and Taiwan’s competitiveness.
According to TECRO, this trade agreement is the most comprehensive one between the U.S. and Taiwan since 1979. They highlighted the strategic significance of the agreement, which will help Taiwan to expand and consolidate its relations with important economic and trade partners in an increasingly politically volatile world.