The first US-Taiwan trade initiative agreement comes into effect

The first agreement under the US-Taiwan Initiative on 21st Century Trade officially took effect on Wednesday, marking a major step toward strengthening economic and trade ties between Taiwan and the United States, the Taipei Times reports .

The agreement addresses various important aspects of trade, including customs administration, trade facilitation, regulatory practices and anti-corruption efforts. The trade negotiation office described the agreement as an “important milestone” in bilateral relations, with both sides already in discussions to ensure full implementation of the agreement’s provisions.

The deal includes key commitments aimed at enhancing cooperation in areas such as promoting domestic service industries and small and medium-sized enterprises (SMEs). As part of the agreement, committees on trade facilitation and good regulatory practices will be established, while a contact mechanism for SMEs will be established to improve communication and coordination.

Both sides stressed the importance of continuing negotiations to address any concerns and facilitate the smooth implementation of the terms of the agreement, the Taipei Times reported.

US Trade Representative Katherine Tai highlighted the importance of the agreement and said its entry into force is an important step towards strengthening US-Taiwan economic relations. “We thank our Taiwan partners for helping us reach this important milestone.

“The entry into force of the first agreement under our 21st Century Trade Initiative is an important step toward strengthening US-Taiwan economic and trade relations,” Tai said in a statement. The agreement also received bipartisan support in the US Congress, which reviewed and approved it without objection in July, providing a legal framework for increased trade exchanges between Taiwan and the US.

In addition to the initial agreement, the two sides are making progress on a second agreement under the initiative, which is expected to cover additional areas such as labour, environment and agriculture. Negotiations on this second agreement are ongoing and both governments are hopeful of its completion.

The US-Taiwan Initiative on 21st Century Trade was launched in June 2022, and the first agreement marks the most comprehensive trade agreement between the two countries since 1979. Taiwan’s trade office expressed confidence that the agreement would serve as a “building block”. A possible free trade agreement in the future, the Taipei Times reported.

Speaking to the media before a forum with business leaders, Premier Cho Jung-tae described the day as “important” for Taiwan-US relations, and stressed that it would serve as an opportunity to strengthen bilateral cooperation in various fields. Shows the commitment of both the countries.