The US Chamber of Commerce in Taiwan (AmCham Taiwan) has said there is hope for a free trade agreement (FTA) between the two countries, with current negotiations over a deal progressing well, according to a report from Reuters.
‘Pivotal moment’
AmCham Taiwan released its 2024 White Paper report today (6 June) at what it calls a “pivotal moment in history”, marked by the recent Taiwanese elections and the upcoming US elections. That moment offers “an unprecedented opening to future-proof Taiwan”, it adds.
To do this, the report argues that the “most important step” Taiwan must take is “aligning itself with international standards” on trade. The progress in talks under the US–Taiwan 21st Century Trade Initiative serves “as a reminder of the importance for Taiwan to harmonise its regulatory framework with those of major economies”.
‘Harmonisation’
Financial regulations in particular require “harmonisation” with global standards, “matching Taiwan’s investment environment with international norms”. There are also calls for an upgrade to registration of chemicals, pharmaceuticals and medical devices in line with the frameworks used by other countries.
Dan Silver, the chairman of AmCham Taiwan, said at the release of the paper that the progress on the Initiative on 21st Century trade between the two countries meant there was a foundation for working towards a full FTA:
"The question will then become one of political will. And we can see through the United States Trade Representative’s priorities for 2024 released in the first quarter that Taiwan is very high on the agenda.”
“Our belief is that we know bilateral trade agreements in general do not have the level of support in Washington they once did; we also are aware that there are few places that have a higher level of bipartisan support than Taiwan.”
The “strong bipartisan support for Taiwan in [the US] Congress” means there are good prospects for a full trade deal “sometime in the future”, he added.
Taiwan’s targets
In April, Taiwan’s trade chief John Deng told the FT that “we have laid a good foundation with the US, UK and Canada” for working towards FTAs, which he hoped “can encourage other countries to follow suit”.
He explained that the agreement of FTAs strengthens Taiwan’s international standing and legal status. He said:
“Signing a trade deal also demonstrates Taiwan’s capacity to commit to an agreement with another country. For example, a deal between the US and Taiwan needs approval by the US Congress and the Legislative Yuan, so its legal status is very solid.”
The development of trade deals with G7 nations also plays a political role, he suggested. With many countries yet to recognise Taiwan as an independent nation, there is a legitimising aspect to such deals, while they also provide security:
“More trade agreements will strengthen Taiwan’s security and contribute to peace and stability across the Taiwan Strait in a meaningful way, and align with what many in the international community, including G7, want.”