The US and Taiwan have reached an agreement on the first part of their trade initiative, the “21st Century”, which covers customs, regulation and small business matters, according to a statement issued by the US Trade Commissioner’s office. Reuters reported over the weekend that after the first part of the initiative was signed, The negotiations will apply to additional and more complex issues, including agriculture, digital commerce, working conditions and environmental procedures and government companies.
US Trade Commissioner Catherine Tai said in a statement that the agreement strengthens the ties between the US and Taiwan and demonstrates their ability to work together to promote trade for the benefit of their populations. Tai said. The Taiwanese Ministry of Commerce stated that this is an agreement of “historical importance” and added that Taiwan hopes to finish the negotiations on the other issues by the end of the year.
The agreement is not expected to change tariffs on goods, but according to people familiar with the matter, it will strengthen economic ties between the countries, increase American exports to the island and increase Taiwan’s ability to resist economic coercion from China. Talks on the agreement opened in August, after Taiwan was not included in a broader trade initiative of Asian countries. The announcement of the agreement comes while a meeting is scheduled to take place in the US next week between Chinese Commerce Minister Wang Wenta and US Commerce Secretary Gina Raimondo.
In January of this year it was announced that Taiwan is planning to distribute to its citizens an amount of about 200 dollars this year, thus sharing with them the fruits of the country’s economic growth. The country’s economy – which relies heavily on exports, and is an important engine of the global technology sector – grew in 2021 by 6.45%, its fastest growth rate since it expanded by 10.25% in 2010. The Asian country has experienced high growth, among other things thanks to being a major manufacturer of chips, which are central to the automotive, aviation and telecom industries.