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  1. Negotiations

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

USA and Taiwan’s first FTA now in force
10-Dec-2024 Asia Business Outlook
The United States and Taiwan have officially implemented their first trade agreement under the 21st Century Trade Initiative. While Taiwan was excluded from the Indo-Pacific Economic Framework, this agreement demonstrates the U.S.’s commitment to strengthening its economic partnership with Taiwan. The agreement covers areas such as anti-corruption, customs, and small and medium-sized enterprises.
Taiwan, US wrap up latest round of talks for trade deal
8-May-2024 Taiwan News
The second round of a second phase of talks under the United States-Taiwan Initiative on 21st-Century Trade wrapped up in Taipei on Friday (May 3) after discussions about agriculture, environmental protection, and labor issues.
US, Taiwan to resume trade talks in Taipei starting on Monday
29-Apr-2024 Reuters
The US and Taiwan will hold another round of negotiations toward their "21st Century" trade agreement starting on Monday in Taipei, the U.S. Trade Representative’s office said.
Taiwan, US commence second-round trade talks
21-Aug-2023 Focus Taiwan
Taiwan and the United States have kicked off their second round of negotiations under a bilateral trade initiative.
US House approves Taiwan trade deal, demands future oversight
23-Jun-2023 South China Morning Post
The US House of Representatives voted to approve the first agreement signed under the US-Taiwan Initiative on 21st Century Trade and to require congressional consultation for future negotiations.
US-Taiwan relations: New trade deal signed as China tensions rise
2-Jun-2023 BBC
It is the first agreement under a framework for talks between Washington and Taipei called the US-Taiwan Initiative on 21st Century Trade.
US, Taiwan agree to lift trade, clouding planned China talks
19-May-2023 The Washington Post
The Taiwan initiative isn’t a formal free-trade agreement and doesn’t address thorny issues such as tariffs, but it’s part of a broader drive to deepen trade ties amid heightened tensions with Beijing
US-Taiwan trade agreement on schedule: Trade representative
4-May-2023 RTI
The progress to finalize the U.S.-Taiwan 21st Century Trade Initiative is on schedule though without a definitive signing date.
Signing of US-Taiwan trade pact to be foundation for future full-scale BIA: Source
3-Mar-2023 Focus Taiwan
Taiwan and the United States will be signing an agreement under a trade initiative "in the coming weeks" that would pave the way for a full-scale bilateral trade agreement should Washington wish to explore that option.
US, Taiwan talks raise hopes for free-trade pact, analysts say
17-Jan-2023 South China Morning Post
Talks under way in Taipei between Taiwanese and US officials could pave the way for the two sides to sign a free-trade agreement in four areas, according to analysts.