Free Trade Agreement With Taiwan

September 22, 2021

In short, this year`s unique situation – Taiwan inspires positive headlines; U.S. politicians looking for ways to oppose 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 deal would benefit the U.S. From an American perspective, a free trade agreement with Taiwan would also bring modest economic benefits. The IMF has ranked Taiwan`s economy as the 20th largest in the world. With a GDP of nearly $600 billion, it lies between Switzerland and Poland. But this underestimates its commercial role: Taiwan is America`s 10th largest trading partner, ahead of India or France. However, the greatest attention was focused on Taiwan`s trade relations with the United States, especially since officials had taken steps to make progress in a Taiwanese-U.S. country. Trade pact before President Donald Trump loses his re-election to President-elect Joe Biden. Scott L. Kastner of the University of Maryland offered the interesting argument that it is in China`s long-term interest to allow Taiwan to enter into a free trade agreement with the United States.

He called Beijing`s current opposition “counterproductive.” In principle, Kastner argues that the conclusion of a free trade agreement between the United States and Taiwan would give Taiwan a sense of greater security and autonomy. To the extent that Taiwan sees itself as more autonomous, it would feel safer to start reunification talks with China. As Taiwan feels less autonomy and China interferes in Taiwan`s affairs, this only irritates Taiwan and makes it more reluctant to enter into talks with the mainland about its future. U.S. Under Secretary of State Keith Krach (left) meets with TaiwanEse President Tsai Ing-wen (center) during a visit to Taiwan, Sept. 18, 2020. At Friday`s protest, Chen is expected to sign a memorandum of understanding on bilateral economic cooperation, which is part of the talks that Taiwan`s Ministry of Economy said will include global healthcare, supply chain security, energy development and 5G network development, as well as infrastructure investments. Fourth, Taiwan could continue to put an end to selective liberalization. For example, are there sectors where Taiwan currently has higher tariffs or trade barriers than China? Whatever the imminent likelihood of a free trade agreement, it does not seem in Taiwan`s interest to be less open to the United States. . .