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US-Taiwan

The discussion around a possible bilateral free trade agreement between Taiwan and the US has been drawn out for years, with Taiwan requesting and the US acting lukewarm toward the idea.

At stake in any kind of bilateral trade or investment deal here is, first and foremost, the political standing of Taiwan vis-a-vis China and the rest of world. An FTA with Washington would amount to US recognition of Taiwan’s sovereignty and independence from China. This goes against Chinese policy and could trigger military action. The US adheres to Beijing’s "one China" policy while it maintains unofficial relations with Taiwan.

The economics of a potential deal are another story. Taiwan is the US’ eighth largest trading partner, and sixth largest importer of US agricultural goods, and wants its own terms of access to US markets. But the US insists that the actual benefits of an FTA for Taiwan would not be important, even though Washington constantly pressures Taiwan to improve its policies on electronic commerce, government procurement, intellectual property, food safety and US beef for the benefit of American corporations.

In the meantime, the two governments, through their respective proxy agencies, signed a sort of Trade and Investment Framework Agreement in 1994 and conduct discussions through the TIFA Council.

last update: May 2012
Photo: munch999/CC BY-NC-SA 2.0


PR firm hired to push FTA
Taiwan has hired a US public relations firm to push the US to sign a free-trade agreement with Taipei, a Taiwanese radio network reported yesterday.
Taiwan presses for US trade pact
Taiwan urged the United States to move quickly to forge a free-trade agreement (FTA) with America’s eighth biggest trading partner, despite bitter objections from China.
Convincing Washington to sign a trade deal
Recently, the Research and Planning Committee of the Ministry of Foreign Affairs invited American Chamber of Commerce in Taipei (AmCham) executive director Richard Vuylsteke to a conference discussing win-win strategies for negotiating a Taiwan-US free trade agreement (FTA).
AmCham pushes for direct cross-straits links
Officials of the American Chamber of Commerce in Taipei said in Washington, DC Thursday that setting up direct cross-Taiwan Strait links could fast-track a Free Trade Agreement (FTA) between the United States and Taiwan.
Taiwan president urges US to consider free trade pact
President Chen Shui-bian urged the US government Friday to sign a free trade agreement (FTA) with Taiwan, saying that an FTA would allow US agriculture and automobile exports to Taiwan to grow by 100 per cent.
US eyes closer trade ties with Taiwan, but no pact
The United States has no immediate plans to negotiate a free trade pact with Taiwan, but is eager to discuss other ways to expand economic ties, a top US trade official told reporters on Monday.
Int’l Intellectual Property Alliance supports US-Taiwan FTA
The International Intellectual Property Alliance (IIPA), an influential business entity, expressed strong support for the signing of a free trade agreement (FTA) between the United States and Taiwan.
Taiwan targets June 2007 for FTA with United States
Taiwan looks forward to signing a free trade agreement with the United States before the expiration of the US Trade Promotion Authority next June, Taiwan’s deputy representative in Washington, DC said Friday.
US-Taiwan FTA not likely within next few years: USTR official
A ranking US Trade Representative Office (USTR) official said Tuesday it is not likely that the United States and Taiwan will be able to reach a free trade agreement within the next couple of years as talks on many bilateral trade issues have yet to be completed.
US official urges Taiwan to do more on FTA
"The ball is in Taiwan’s court. It’s not enough simply to say that we want an FTA."