The new Taiwan-US Initiative on 21st Century Trade

Taiwan and US announced a new trade talk “The new Taiwan-US Initiative on 21st Century Trade” on Wednesday, June 1.  The initiative is to provide a mechanism for economic and trade talks between the two nations in 11 areas, excluding tariffs.  Premier Su Tseng-chang said it has significant strategic implications, as it shows that Taiwan is a priority trading partner of the US and vice versa.   Su further said it represents a new model of Taiwan-US engagement that not only provides a road map for signing a bilateral trade pact, but would also help the two nations develop a more comprehensive, substantive, cutting-edge and sustainable economic partnership.   It largely parallels the US’ Indo-Pacific Economic Framework (IPEF), which excluded Taiwan when it launched last week.   It would also be of great benefit to Taiwan’s efforts to join regional trade mechanisms such as the IPEF and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The first round of negotiations is to be held late June in Washington, Minister Without Portfolio John Deng told reporters following a virtual meeting with Deputy US Trade Representative Sarah Bianchi.  New Taiwan-US trade negotiations could move more quickly than broader talks with 12 Indo-Pacific nations, given strong interest in Taipei and Washington to deepen economic ties, Deputy US Trade Representative Sarah Bianchi said on Thursday.   American Institute in Taiwan Director Sandra Oudkirk said that the institute is ready to support the advancement of the exciting initiative, which aims to develop concrete ways to deepen the US-Taiwan economic relationship.   In a Facebook post on Wednesday evening, President Tsai Ing-wen wrote she was hopeful that the new bilateral trade initiative between Taiwan and the US would eventually lead to a trade agreement.