After almost a year in the making, the first phase of negotiations under the U.S.-Taiwan Initiative on 21st Century Trade has wrapped up. The first agreement features 81 articles in five key areas, including customs and trade facilitation, and anti-corruption practices. It will be co-signed in June by Taiwan’s representative to the U.S. and the AIT, the de facto American embassy in Taiwan. The agreement is seen as an important step for Taiwan to reach a free trade agreement with the U.S. and as a boost for its bid to join the CPTPP.

Taiwan and the U.S. have concluded the first phase of negotiations of the U.S.-Taiwan Initiative on 21st Century Trade. The first agreement under the initiative contains 81 articles, and is expected to be signed in June by Taiwan’s de facto ambassador to Washington Hsiao Bi-khim and the AIT. It is dubbed as the most comprehensive trade agreement since the U.S. severed diplomatic ties with Taiwan in 1979.

Hsu Chun-pin
Taiwan Institute of Economic Research
The U.S. and Taiwan previously had TIFA, but it was just a platform for cooperation. It wasn’t an official agreement or text. Writing a legal text on Taiwan-U.S. cooperation will absolutely provide a boost. There are many parts of the CPTPP that can be linked to the articles discussed between Taiwan and the U.S. at this time.

The trade pact covers five key areas: customs management and trade facilitation, regulatory practices, domestic regulations on services, small and medium enterprises and anti-corruption efforts.

Experts say implementing an electronic customs system could benefit businesses by reducing time cost. Businesses owners say they look forward to measures that boost bilateral investment in small and medium enterprises.

Voice of Lee Yu-chia
National Association of Small and Medium Enterprise
It can also be used as a standard for trade cooperation initiatives in the Indo-Pacific. The first time will cover more ground. We didn’t have such an opportunity. Now everyone is opening their doors to everyone else, and we’ll be seeing all sorts of diversified projects.

The trade pact is an important first step to a signing a free trade agreement with the U.S., and toward Taiwan’s membership in the CPTPP.

Wang Mei-hua
Economics minister
This will further strengthen Taiwan-U.S. cooperation. We are extremely pleased that Taiwan and the U.S. were able to conclude meetings on five key issues so fast.

Lai Jui-lung
DPP lawmaker
The next step is to sign an FTA with the U.S. This will be very helpful toward international relations and interactions. It can also speed up the process of signing trade agreements with other countries. It’s an extremely important formal agreement.

Another seven trade areas are scheduled to be negotiated before the end of the year. The U.S.-Taiwan Initiative on 21st Century Trade is hoped to tighten trade ties between the two sides, and become a springboard for Taiwan commerce to expand internationally.

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