“We are confident that a trade agreement between the United States and Taiwan would promote the security and economic growth of the United States, Taiwan and the Indo-Pacific area as a whole,” the letter says. Finally, the free trade agreement should model and communicate. It is time to look at what a free trade agreement would look like and let us not limit the debate to bilateral trade. What would be the anti-inflationary effects? Would Taiwanese investors have better access to U.S. financial instruments? What would be the benefits for the Taiwanese-Chinese supply chain? Which U.S. cities could develop air links with Taiwan? It would be a good idea to launch the think tank`s work rounds, roundtable discussions and modeling. If we want the free trade agreement between the United States and Taiwan to become a reality one day, we will start to discuss what “really” means. Even if Taiwan were to insist on a trade pact with Trump officials, it appears that a Biden administration will support new trade negotiations with Taiwan. Fourth, Taiwan could continue to put an end to selective liberalization. For example, are there economic sectors in which Taiwan currently has higher tariffs or trade barriers than China? Despite the immediate likelihood of a free trade agreement, it does not appear to be in Taiwan`s interest to be less open to the United States than China. Achieving a bilateral trade agreement (BTA) between the United States and Taiwan is a long-term dream among proponents of bilateral relations as a whole. One of the main stumbling blocks has always been the Taiwanese ban on American beef and pork due to the use of the additive for animal feed, ractopamine.
The authorisation of the additive is a political problem in Taiwan due to food security concerns; In the meantime, this was a precondition for serious discussions on the BTA. This deadlock between domestic policy concerns and U.S. pressure has moved the BTA`s discussions away so far. All stakeholders agreed that there would be benefits for both sides if the United States and Taiwan concluded a free trade agreement (FTA), but they also noted that China`s current opposition to such negotiations remains a major obstacle. We need to find a creative way to show China that China could also benefit from such a free trade agreement. But no discussion is ongoing or planned. On the one hand, the United States is ambivalent about trade liberalization, with USTR chief Lighthizer explicitly criticizing free trade agreements. Taiwan, for its part, also has national constituencies sensitive to additional competition.
Republican Congressman Michael McCaul told Reuters in September that a trade deal with Taiwan was “very important” on the Trump administration`s radar screen. Days later, a group of 42 Republican senators and eight Democratic senators asked Mr. Trump to begin negotiations for a bilateral trade deal with Taiwan. However, there was no immediate response from the Office of the U.S. Trade Representative (USTR), which would be responsible for all BTA discussions.