US, Taiwan push to deepen trade ties amid China tensions

TAIPEI • The United States and Taiwan have agreed to start trade talks under a new initiative to reach agreements with "econo-mically meaningful outcomes", with a Taiwan official saying that China's "economic coercion" would also be discussed.

Washington and Taipei unveiled the US-Taiwan Initiative on 21st-Century Trade in June, just days after the Biden administration excluded the Chinese-claimed island from its Asia-focused economic plan designed to counter China's growing influence, the 13-member Indo-Pacific Economic Framework.

The office of the US Trade Representative said the two sides had "reached consensus on the negotiating mandate", and it was expected that the first round of talks would take place early this autumn.

"We plan to pursue an ambitious schedule for achieving high-standard commitments and meaningful outcomes covering the 11 trade areas in the negotiating mandate that will help build a fairer, more prosperous and resilient 21st-century economy," Deputy US Trade Representative Sarah Bianchi said in a statement.

Taiwan's top trade negotiator, Mr John Deng, told reporters in Taipei he hoped talks could start next month, and that this could one day lead to a free trade deal the island has long sought with the US.

China said yesterday following the US-Taiwan announcement that it "firmly opposes" the initiative, with the Ministry of Foreign Affairs warning the US against doing any deal that could imply Taiwan sovereignty.

The US is urged to "carefully handle economic and trade relations with Taiwan and fully respect China's core interests", said Ms Shu Jueting, spokesman for China's Ministry of Commerce.

The negotiating mandate released along with the announcement said the US and Taiwan had set a robust agenda for talks on issues such as trade facilitation, good regulatory practices and removing discriminatory barriers to trade.

It said the beginning of the formal talks would be for the purpose of reaching agreements with "high standard commitments and economically meaningful outcomes".

Mr Deng said one topic would be China's economic coercion, a reference to action Beijing takes to block trade with countries it is in dispute with, such as when Lithuania allowed Taiwan to open a de facto embassy in its capital.

"Its economic coercion targets are not just the United States or Taiwan, it is done to a lot of countries. Its harm to the global economic and trade order is great," he added.

Beijing views Taiwan as its own territory to be seized one day, by force if necessary, and last year, 42 per cent of Taiwan's exports went to China and Hong Kong, compared with 15 per cent to the US.

Washington diplomatically re-cognises Beijing over Taipei, but maintains de facto relations with Taiwan and supports the island's right to decide its future.

The US has said its position on Taiwan remains unchanged and has accused China of threatening peace in the Taiwan Strait and using a visit by US House Speaker Nancy Pelosi as a pretext for launching the largest Chinese military drills around the island.

Its top envoy in East Asia, Mr Daniel Kritenbrink, said yesterday that Beijing will likely ramp up pressure on Taiwan in the coming months after the drills.

Taiwan's Defence Ministry said China yesterday deployed 51 aircraft and six ships around the island. That included 25 aircraft that crossed the Taiwan Strait's median line, which in normal times acts as an unofficial barrier between the two sides, or flew into Taiwan's air defence zone.

REUTERS, AGENCE FRANCE-PRESSE