El Salvador's approval on Friday of a free-trade agreement (FTA) with Taiwan means the Central American country will eventually enjoy tariff-free privileges for sugar exports of up to 60,000 tonnes to Taiwan.
The FTA is expected to take effect on Jan. 1 next year if the Legislative Yuan approves it by the end of the year.
In addition to the deal with El Salvador, Taiwan has signed FTAs with Panama, Guatemala, Nicaragua and Honduras, with some pending legislative approval.
Since the FTA with Panama took effect, Minister of Economic Affairs Steve Chen (
Trade with Guatemala has grown by 25 percent since the pact took effect six months ago, he said.
He said he expected trade with El Salvador to grow substantially after the FTA becomes effective.
El Salvadoran President Antonio Saca and President Chen Shui-bian (
Chen Shui-bian, visiting El Salvador on the second leg of his three-nation trip to Central America, said at the press conference he hoped the legislature would review the FTA as soon as possible in the next legislative session.
Describing Taiwan as a "good friend" and "brother," Saca said the FTA was a testimony to the two countries' firm ties.
Under the FTA's framework, Steve Chen said that El Salvador would enjoy tariff-free privileges for sugar exports up to 35,000 tonnes for the first year.
The amount will increase to 50,000 tonnes of sugar for the second year and 60,000 tonnes for the third.
Taiwan's consumes 500,000 tonnes to 600,000 tonnes of sugar per year, with approximately 60,000 tonnes coming from local suppliers and the rest mostly from Thailand and Australia.
Steve Chen said tariff-free sugar imports from El Salvador would not jeopardize local sugar cane farmers because the government has a purchasing system in place to protect their interests.
Because El Salvador is a member of the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA), which took effect in El Salvador in March last year, Steven Chen said that Taiwanese businesses operating in El Salvador were entitled to trade benefits with the US.
DR-CAFTA includes the US, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic.
Signing FTAs helps lower prices and increase trade volume, Steve Chen said.
In addition to sugar, he said there was plenty of room for imports of El Salvadoran coffee. Taiwan's coffee imports totaled US$32 million last year, with US$3 million, or 11 percent coming from Central American countries.
The Taiwan-El Salvador FTA covers agriculture, manufacturing and the service sector.
Also see story:
El Salvador vows firm ties with Taiwan
‘ONE BRIDGE’: The US president-elect met with Akie Abe on Dec. 15 in Florida and the two discussed a potential Taiwan-China conflict’s implications for world peace US president-elect Donald Trump has described Taiwan as “a major issue for world peace” during a meeting with Akie Abe, the widow of late Japanese prime minister Shinzo Abe, Japanese newspaper the Yomiuri Shimbun quoted sources as saying in a report yesterday. Trump met with Akie Abe on Dec. 15 at the Mar-a-Lago estate in Florida, where the two discussed the Russo-Ukrainian war and the situation in the Taiwan Strait. During the meeting, Trump spoke on the implications for world peace of a potential Taiwan-China conflict, which “indicated his administration’s stance of placing importance on dealing with the situation in
QUICK LOOK: The amendments include stricter recall requirements and Constitutional Court procedures, as well as a big increase in local governments’ budgets Portions of controversial amendments to tighten requirements for recalling officials and Constitutional Court procedures were passed by opposition lawmakers yesterday following clashes between lawmakers in the morning, as Democratic Progressive Party (DPP) members tried to block Chinese Nationalist Party (KMT) legislators from entering the chamber. Parts of the Public Officials Election and Recall Act (公職人員選舉罷免法) and Constitutional Court Procedure Act (憲法訴訟法) passed the third reading yesterday. The legislature was still voting on various amendments to the Act Governing the Allocation of Government Revenues and Expenditures (財政收支劃分法) as of press time last night, after the session was extended to midnight. Amendments to Article 4
ALLIANCE: Washington continues to implement its policy of normalizing arms sales to Taiwan and helps enhance its defense, the Ministry of Foreign Affairs said US President Joe Biden on Friday agreed to provide US$571.3 million in defense support for Taiwan, the White House said, while the US State Department approved the potential sale of US$265 million in military equipment. Biden had delegated to the secretary of state the authority “to direct the drawdown of up to US$571.3 million in defense articles and services of the Department of Defense, and military education and training, to provide assistance to Taiwan,” the White House said in a statement. However, it did not provide specific details about this latest package, which was the third of its kind to
CONSIDERING OPTIONS: Lai’s office said he regrets, but respects the outcome, and his administration is looking at all legal and constitutional means to maintain democracy The Legislative Yuan yesterday rejected all seven nominees for the Constitutional Court, an expected outcome that could immobilize the court. President William Lai (賴清德) nominated the justice candidates, including the nominees for the president and vice president of the Judicial Yuan, at the end of August. The Chinese Nationalist Party (KMT) caucus opposed all the nominees, while Taiwan People’s Party (TPP) caucus whip Huang Kuo-chang (黃國昌) said his party only approved of National Taiwan University (NTU) Graduate Institute of National Development professor Liu Ching-yi (劉靜怡). The Democratic Progressive Party (DPP) caucus opposed the appointment of Liu, but approved the other nominees. As defenders of
RSS