Taiwan And USA Conclude Primary Phase Of 21st Century Trade Plan

The United States and Taiwan have agreed on the first phase of their "21st Century" trade plan, which covers customs and border procedures, regulatory practises, and small businesses, according to the US Trade Representative's office on Thursday (May 18).

Negotiations on other, more complicated trade areas such as agriculture, digital trade, labour and environmental standards, state-owned enterprises, and non-market policies and practises will begin after the initial agreement of the US-Taiwan Initiative on 21st Century Trade is signed, according to USTR.

According to US Trade Representative Katherine Tai, the agreement promotes US-Taiwan relations and illustrates that the two countries can work together to advance trade interests for their respective populations.

"We look forward to continuing these discussions and finalising a strong and high-standard trade agreement that addresses 21st-century economic challenges."

In a statement, Taiwan's Office of Trade Negotiations termed the deal "historically significant" and stated that Taiwan hoped to complete negotiations on all outstanding matters by the end of the year.

The agreement is not likely to change goods tariffs, but supporters say it will improve economic ties between the United States and Taiwan, open the Chinese-claimed island to more US exports, and increase Taiwan's ability to resist Chinese economic coercion. Taiwan, which is democratically governed, firmly opposes China's claims to sovereignty.

China has responded angrily to Taiwan President Tsai Ing-wen's recent meetings with high-level US legislators, including one with US House of Representatives Speaker Kevin McCarthy in April. The trade agreement was announced just days before meetings between China's commerce minister, Wang Wenta, and USTR Tai.