US Should Increase Trade, Export Control Cooperation With Taiwan, Experts Say

The U.S. should sign a trade deal with Taiwan and increase cooperation on export controls, similar to U.S. partnerships with Japan and Australia, Asia experts at the Center for Strategic and International Studies said. Increased collaboration with Taiwan has strong support from Congress and the Taiwanese government, the experts said, and would make sense as the U.S. welcomes manufacturing and investment from Taiwan.

“We advocate bringing Taiwan into plurilateral discussions on export controls, cybersecurity, and IT supply chains that the United States is already holding with other like-minded partners,” said Bonnie Glaser, a CSIS expert, speaking during an Oct. 21 call with reporters hosted by the think tank. Michael Green, another CSIS Asia expert, said strong bipartisan support from Congress improves the possibility of a deal.

“While quite a few members of Congress would oppose a bilateral investment treaty with China because they don’t want China’s investment in the U.S. and they don’t want U.S. offshoring to China, Taiwan is different,” Green said. “Taiwan manufacturing is welcome in the U.S., and Taiwan is a safe rule of law destination for American investment.”

The U.S.-Taiwan relationship has seen more collaboration recently, including arms sales (see 2010220020) and an agreement with the Taiwan Semiconductor Manufacturing Corporation to build a chip factory in Arizona (see 2005150033). In August, Taiwan lifted restrictions on U.S. pork and beef imports and said it wants a trade deal with the U.S. (see 2008280023), an idea endorsed by 50 senators (see 2010020020).

“[Taiwan] President Tsai Ing-wen has taken a politically courageous step, expending precious political capital in announcing a unilateral lifting of restrictions on the import of U.S. beef and pork,” Glaser said. “A U.S. response is warranted, and we believe that we should negotiate a free trade agreement.”

The Office of the U.S. Trade Representative, however, has not publicly taken a stance. Glaser said the administration may be worried that negotiations with Taiwan will interfere with the U.S.’s phase one trade deal with China. USTR Robert Lighthizer and President Donald Trump “have been most concerned and attached priority to our negotiations with China ... and making sure that China makes the purchases of American products that it committed to make,” Glaser said. “That is by far the most important reason in preventing the USTR from taking up the issue of negotiations of a free trade agreement with Taiwan.”