Taiwan and the United States are preparing to sign the first trade agreement under a newly established framework, the two governments have announced. The development serves to strengthen ties between the two countries, especially amid rising tensions with China over Taiwan’s democratic governance.
Last August, Taiwan and the United States began discussions under the US-Taiwan Initiative on 21st Century Trade. The move came after Taiwan was excluded from the Indo-Pacific Economic Framework, the broader Asian trade initiative led by Washington.
The Office of Trade Negotiations in Taiwan issued a brief statement confirming that the inaugural agreement under the framework would be signed Thursday morning local time in Washington. However, no further details were provided.
The Office of the US Trade Representative announced that Deputy US Trade Representative Sarah Bianchi would be present at the signing ceremony, but did not provide additional information.
Last month, the two sides reached an agreement on the initial phase of their trade initiative, covering areas such as customs and border procedures, regulatory approaches, and support for small businesses.
After the initial agreement is signed, negotiations will begin on more complex trade issues, including agriculture, digital trade, labor and environmental standards, government agencies, and non-market policies and practices, as previously stated by the US Trade Representative.
It is expected that tariffs on goods will not change as a result of the trade agreement. However, proponents say it would boost economic ties between the U.S. and Taiwan, increase the island’s access to U.S. exports, and strengthen Taiwan’s resilience to economic pressure from China.
China has criticized these trade talks, as it does with any high-level engagement between Taiwan and the United States. Beijing asserts its sovereignty over Taiwan and has been putting pressure on Taipei through frequent military exercises, including war games near the island.