US, Taiwan to Hold Formal Trade Talks

The U.S. and Taiwan this week agreed to soon begin trade talks under a new initiative aimed at increasing trade in goods and removing “discriminatory barriers,” the Office of U.S. Trade Representative said. The negotiations, which USTR said are set to begin “early this fall,” also will include discussions on trade facilitation measures, anti-corruption, agriculture, technology standards, digital trade, labor and non-market policies. The U.S. and Taiwan plan to “pursue an ambitious schedule” for the talks, Deputy USTR Sarah Bianchi said, adding the discussions will result in a “fairer, more prosperous and resilient 21st century economy.”

A host of trade facilitation topics are on the negotiating agenda, including measures to increase transparency surrounding customs requirements, reduce “border formalities” and digitize trade paperless processes, and the submission of advance electronic data. The two sides also plan to address goods “vulnerable to deterioration,” the release of goods, returned goods and express shipments, protection of trader information and work toward better customs cooperation.

Part of the talks will focus on improving agricultural trade through the “adoption of sound, transparent regulatory practices,” the negotiating mandate said. The two sides also plan to adopt provisions that support labor rights protections and stand against the use of forced labor in global supply chains; promote climate-friendly trade measures and tackle illegal trade in wild fauna and flora; and better collaborate on removing trade barriers and setting standards.

Although the mandate doesn’t mention China, it said the U.S. and Taiwan will look to address the “significant distortions that can occur to international trade and investment” from the non-market practices of state-owned enterprises. The two sides will look to adopt measures “designed to create a level playing field for workers and businesses when competing against these entities in the international marketplace,” the mandate said, “including by ensuring that these entities act in a commercial manner, are regulated impartially and do not provide or receive trade distorting non-commercial assistance.”

“The United States and Taiwan are market-oriented economies and understand the harm that can be caused by trade partners that deploy non-market policies and practices, which threaten livelihoods and can harm workers and businesses,” the two countries said. “The two sides will seek to adopt provisions that promote collaboration on ways to address these harmful non-market policies and practices.”

John Deng, Taiwan’s top trade negotiator, said he expects the two sides to also discuss China’s economic coercion, including trade sanctions, Reuters reported Aug. 18. Deng said he hopes the talks start next month and that they lead to a free trade agreement.

The announcement comes amid increasing tensions between China and the U.S. over the recent travel of several U.S. lawmakers to Taiwan, including House Speaker Nancy Pelosi, D-Calif., earlier this month. China sanctioned Pelosi, saying her Taiwan visit constituted a “gross interference in China’s internal affairs” (see 2208050043).

A Chinese foreign ministry spokesperson criticized the U.S.-Taiwan trade announcement, saying Aug. 18 it’s “always against any country negotiating agreements of sovereign implication or official nature with China’s Taiwan region.” The spokesperson said the U.S. should “stop all forms of official interaction” with Taiwan, which it says empowers Taiwan independence advocates. “We urge the U.S. not to miscalculate on this,” the spokesperson said during a regularly scheduled press conference in Beijing, according to a transcript in English provided by the Chinese Embassy in Washington.