The International Trade Council notes the official enactment of the US-Taiwan trade agreement following US President Joe Biden's endorsement. This legislation represents the first agreement under the US-Taiwan Initiative on 21st Century Trade, signaling a collaborative approach to bilateral trade ties.
The agreement's primary features include:
- Streamlining of customs procedures.
- Measures against corruption.
- Support mechanisms for small businesses to navigate regulatory landscapes in both territories.
The current agreement focuses on operational facets and does not delve into specific market-access provisions. It serves as an introduction to a series of anticipated agreements that will come under the banner of the 21st Century trade initiative, a framework that was jointly introduced by both parties in the previous year.
Proposed by the Senate Finance Committee and the House Ways and Means Committee, the bill, titled "United States-Taiwan Initiative on 21st-Century Trade First Agreement Implementation Act", has been approved by both the House and Senate.
Chairman of the Ways and Means Committee, Congressman Jason Smith, commented on the agreement, emphasizing its role in evolving trade dynamics and relationships.
The legislation carries specific mandates, which include:
- A provision for Congressional review of all future negotiation drafts under the initiative before being shared with Taiwan.
- A requirement for timely sharing of texts originating from Taiwan.
- Daily briefings to Congress during negotiation sessions.
- Public release of future agreement drafts 60 days prior to formal finalization.
- The need for an agreement to be endorsed as a law for future agreements to be formalized.
While acknowledging the new law, President Biden expressed concerns over certain sections that may intersect with constitutional parameters.
The International Trade Council also observes Congress's discussions surrounding potential economic collaborations, including a tax agreement with Taipei aimed at addressing double taxation issues for residents in both regions.
The Council will continue to monitor developments related to this agreement and its implications for international trade.
