The first agreement under the US-Taiwan Initiative on 21st Century Trade officially came into effect yesterday, marking a “significant milestone” in bilateral trade relations, the Office of Trade Negotiations said yesterday.
The agreement between Taiwan and the US covers commitments to customs administration and trade facilitation, regulatory practices, rules for running domestic service industries, anti-corruption, and small and medium-sized enterprises.
Both sides will continue to discuss implementation details and share any concerns, the office said in a statement.
Photo: I-Hwa Cheng, Bloomberg
This includes the establishment of committees on issues such as trade facilitation and good regulatory practices, as well as a liaison mechanism for small and medium-sized enterprises to ensure communication and coordination.
The Office of the US Trade Representative (USTR) also issued a statement on Monday confirming that the initial agreement had come into force.
“We thank our Taiwan partners for helping us reach this important milestone. The entry into force of the first agreement under our 21st Century Trade Initiative represents an important step forward in strengthening the US-Taiwan economic and trade relationship,” US Trade Representative Katherine Tai (戴琪) said in the statement.
The USTR previously submitted a certification to the US Congress stating that Taiwan had taken the measures necessary to comply with its obligations under the agreement, the statement said.
Both sides had notified each other that all procedures required for the agreement to enter into force had been completed, it said.
The US and Taiwan have been making progress on a second agreement under the US-Taiwan Initiative on 21st Century Trade, it said.
That agreement would address areas including labor, the environment and agriculture, and negotiations are ongoing, it said.
Taiwan’s trade office said the agreement had received unanimous support from Taiwan and the US Congress.
The two political parties in the US reviewed and approved it without objection in July, giving the agreement the status of an administrative agreement in the US Congress. That status made the legal basis for economic and trade exchanges between Taiwan and the US more solid, the trade office said.
To ensure that both nations can implement the agreement, the US Congress also approved the US-Taiwan Initiative on 21st Century Trade First Agreement Implementation Act in July last year following the passage of the first agreement, it said.
Taiwan and the US launched the Initiative on 21st Century Trade on June 1, 2022.
The first agreement under the initiative is an important “building block” toward a future free-trade agreement, the Office of Trade Negotiations said in May last year, calling it the “most comprehensive” deal agreed between the two trading partners since 1979.
Speaking to the media yesterday before attending a forum with business leaders, Premier Cho Jung-tai (卓榮泰) described it as a “significant day” for Taiwan-US relations.
He said it reflects both sides’ commitment to strengthening cooperation while deepening a broad range of ties.
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