Us Free Trade Agreement With Taiwan
Any form of bilateral trade or investment agreement focuses on Taiwan`s political image vis-à-vis China and the rest of the world. A free trade agreement with Washington would amount to the United States` recognition of Taiwan`s sovereignty and Taiwan`s independence from China. This goes against Chinese policy and could trigger military action. The United States maintains Beijing`s one-China policy while maintaining unofficial relations with Taiwan. In short, this year`s unique situation – with Taiwan, which is making headlines; U.S. politicians looking for ways to resist China`s harassment; and markets looking for ways to recover from Covid-19 is a unique opportunity to focus on why a U.S.-Taiwan trade agreement would benefit the United States. Nearly two decades later, this year`s recovery is mainly fueled by a broader shift in Washington`s mindset regarding U.S.-China relations, characterized by the U.S. general desire to increase its influence over China for greater “strategic competition” between the two powerful nations. Supporters now point to the economic and geopolitical benefits of a closer trade and investment relationship between the United States and Taiwan. Achieving a bilateral trade agreement (BTA) between the United States and Taiwan is a long-term dream among proponents of bilateral relations as a whole. One of the main stumbling blocks has always been the Taiwanese ban on American beef and pork due to the use of the additive for animal feed, ractopamine.
The authorisation of the additive is a political problem in Taiwan due to food security concerns; In the meantime, this was a precondition for serious discussions on the BTA. This deadlock between domestic policy concerns and U.S. pressure has moved the BTA`s discussions away so far. A friend of the Taiwanese government said the island could lose its competitiveness if it were excluded from trade agreements. Taiwan is not part of ASEAN and its participation in regional or bilateral trade agreements can easily be blocked by China. Taiwanese companies need an international trade portal. My main point is that such an agreement makes good trade and economic sound, as do the policies of China and Taiwan. There are three important points to note: Chen is to participate in the Taiwan-U.S. Opening Ceremony. Economic Partnership for Prosperity, Friday.
It is led by U.S. Secretary of State Keith Krach, who visited Taiwan in September and signed a cooperation agreement under which this week`s meetings are being held. Tsai`s unilateral move to ease the restrictions, which have long been a sensitive issue for U.S. negotiators, is therefore a sign of good faith about Taiwan`s seriousness about such an agreement. “I hope that if we can take this important step in the area of beef and pork in the United States, it will be an important starting point for a larger area of Taiwan-U.S. economic cooperation,” Tsai said. And from the U.S. perspective, a free trade agreement with Taiwan would also bring modest economic benefits. The IMF has put Taiwan`s economy in place. Its GDP of nearly $600 billion lies between Switzerland and Poland. But this underestimates its commercial role: Taiwan is America`s tenth largest trading partner, ahead of India or France. Whether in banking, trade negotiations or e-commerce, my professional life helps companies open up new markets, with a particular focus on China.
As CEO of Export For similar trade reasons, other nations have preceded the United States in developing bilateral trade agreements with Taiwan. Taiwan now has eight bilateral trading partners, including the Asia-Pacific Economic Cooperation (APEC) economies Singapore and New Zealand. The two nations entr