US and Taiwan Agree to Begin Pre-FTA Negotiations... Expected to Stir China

Katherine Tai, U.S. Trade Representative (USTR) Photo by EPA Yonhap News

[Asia Economy New York=Correspondent Baek Jong-min] The United States has decided to resume talks to strengthen trade with Taiwan. This reflects the U.S. intention to effectively pursue a Free Trade Agreement (FTA) negotiation. Strong opposition from China is also expected.

The U.S. Trade Representative (USTR) announced on the 10th (local time) that it will hold a Trade and Investment Framework Agreement (TIFA) committee meeting with Taiwan within the next few weeks.

In a statement, USTR said that Katherine Tai, USTR Representative, and Taiwan's top trade representative, Minister John Deng, spoke by phone and "emphasized the importance of trade and investment relations between the U.S. and Taiwan and explained the Biden-Harris administration's worker-centered trade priorities."

Since TIFA is considered a preliminary stage to a Free Trade Agreement (FTA), there is an increasing expectation that it could lead to the conclusion of an FTA between the U.S. and Taiwan.

The U.S. took swift additional measures after Secretary of State Tony Blinken hinted this week at the possibility of resuming trade and investment negotiations with Taiwan.

The U.S. and Taiwan have held 10 related talks since starting TIFA negotiations in 1994, but no progress was made after the Obama administration. This was due to the Trump administration's passive approach to the matter.

Recent developments appear favorable to Taiwan. Amid worsening semiconductor supply chain bottlenecks, the U.S. is seeking to expand its influence over Taiwan, home to TSMC, the world's largest semiconductor foundry company.

The U.S. also has justification to pursue an FTA with Taiwan to counter China and rally democratic forces.

Taiwan has also been conducting behind-the-scenes efforts to promote an FTA with the U.S., including pushing to remove import barriers on U.S. pork last year despite strong opposition from opposition parties.

Since concluding an FTA with Taiwan would effectively recognize Taiwan as a country, strong opposition from China, which maintains the "One China" policy, is expected.

A major foreign media outlet reported, "Any agreement with Taiwan could provoke China," noting that although Taiwan is a member of the World Trade Organization (WTO) and has FTAs with Singapore and New Zealand, many countries remain cautious about concluding trade agreements with Taiwan due to concerns over China's reaction.

This content was produced with the assistance of AI translation services.