US and Taiwan sign deal to lower tariffs, boost spending
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The announcement formalises an agreement unveiled in January to cut US tariffs on many Taiwanese exports.
PHOTO: REUTERS
WASHINGTON – The US said on Feb 12 that it has signed a deal with Taiwan to confirm lower US tariffs on the island’s goods, alongside Taiwanese spending commitments on American products.
The announcement by the US trade envoy’s office formalises an agreement unveiled in January to cut US tariffs on many Taiwanese exports
The Feb 12 trade pact, which needs to be reviewed by Taiwan’s legislature, “will eliminate tariff and non-tariff barriers facing US exports to Taiwan”, said US Trade Representative (USTR) Jamieson Greer.
“This agreement also builds on our longstanding economic and trade relationship with Taiwan and will significantly enhance the resilience of our supply chains, particularly in high-technology sectors,” he added in a statement.
Taiwanese Vice-Premier Cheng Li-chiun said the deal puts Taiwan on a “fair footing to compete with our rivals”.
“Compared with our competitor countries, we have even gained a relative advantage, because the gap created by FTAs that previously left us behind has effectively been closed this time,” Ms Cheng said at a press conference in Washington, referring to free trade agreements.
Ms Cheng said Taiwan had secured “Most Favoured Nation” tariff treatment and reduced the average levy “on our exports to the US from an initial 15 per cent, without stacking reciprocal tariffs, further down to an average of 12.33 per cent”.
Taiwan plans to facilitate a “long-term increase in its purchases of important US goods” until 2029, according to a fact sheet released by the USTR’s office.
These include US$44.4 billion (S$56 billion) in liquefied natural gas and crude oil, US$15.2 billion in civil aircraft and engines, as well as US$25.2 billion in power equipment, power grids and other products.
The fact sheet added that Washington has committed to reducing its tariffs on Taiwanese goods, given Taipei’s commitments towards “significant steps to advance a stronger and more reciprocal trade relationship”.
Among other moves, Taiwan committed as well to reducing most tariff barriers and providing preferential market access for US industrial and agriculture exports. AFP
