Lawmakers on Wednesday unanimously passed an initial agreement reached under the US-Taiwan Initiative on 21st Century that focused on basic trade facilitation and transparency standards and procedures.
Thanking the legislators for their support, President Tsai Ing-wen (蔡英文) expressed her hope on Facebook that the agreement could create more business opportunities for Taiwan and contribute to a more secure global supply chain.
Referring to Premier Chen Chien-jen (陳建仁), Executive Yuan spokesman Lin Tze-luen (林子倫) said the passage, which followed the US Senate’s approval of the pact on Tuesday last week, should pave the way for stronger bilateral trade relations.
Photo: CNA
Taiwan and the US signed the first set of terms under the initiative on June 1, which was focused on making customs, border procedures and regulatory practices more efficient with an aim to make bilateral trade easier, faster, and more transparent.
Under the agreement, which does not cover tariff reductions or exemptions, Taiwan and the US committed to facilitate bilateral trade and investment flows, promote anti-corruption measures, minimize unnecessary border formalities, and encourage the development of small and medium-sized enterprises.
The deal also stipulated the establishment of a “foundation” allowing both sides to address trade and investment challenges and opportunities over time.
The Legislative Yuan, which is holding an extraordinary session from July 17 to 31, completed committee discussions and review of the agreement Thursday last week. Following Wednesday’s development, Legislative Yuan said the two countries will continue negotiations on more complicated issues, such as agriculture, digital trade, labor, environmental, and non-market policies and practices, as well as state-owned enterprises and standards.
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