TAIPEI (Taiwan News) — The first agreement signed under a US-Taiwan trade initiative entered into force Tuesday.
The Cabinet's Office of Trade Negotiations announced that the first agreement under the US-Taiwan Initiative on 21st Century Trade has taken effect. Signed in June 2023, it covers customs administration and trade facilitation, good regulatory practices, domestic services regulation, anticorruption, and small and medium-sized enterprises (SMEs).
According to the office, the agreement received broad support from the legislatures in Taiwan and the US. In July, bipartisan approval in Congress granted the agreement the status of a congressional-executive agreement, further solidifying the legal foundation for Taiwan-US trade relations.
To ensure proper implementation, Congress simultaneously enacted the "United States-Taiwan Initiative on 21st-Century Trade First Agreement Implementation Act." This legislation requires both sides to rigorously review corresponding domestic regulations.
After more than a year of preparation, the Office of the US Trade Representative obtained presidential authorization in August and confirmed regulatory compliance to Congress, culminating in Tuesday's milestone.
Customs administration and trade facilitation
Focuses on streamlining border procedures and reducing red tape, facilitating the shipment of US goods to Taiwanese customers. Customs forms will be submitted electronically and border agencies will be able to accept electronic payments of duties, taxes, and fees.
Good regulatory practices
Requires both sides to improve transparency and encourage public participation in drafting regulatory measures. It also provides tools and mechanisms that enable SMEs to better comprehend regulatory procedures in the US and Taiwan markets.
Anticorruption
Commits both parties to measures that prevent and combat bribery and other types of corruption. This includes provisions that address money laundering, denial of entry for foreign officials, retrieval of corruption proceeds, and greater protections for corruption whistleblowers.
Domestic services regulation
Ensures fair treatment of service suppliers when applying for permission to operate and streamlines information flow between license applicants and the regulator. Regulators must be independent of the industry they manage and must inform applicants of license requirements, offer applicants a fair opportunity to show they meet requirements, and decide whether to issue a license in a timely manner.
SMEs
Promotes trade and investment opportunities for SMEs in the US and Taiwan. This includes training programs, trade education, trade finance, trade missions, and boosting SME access to capital and credit.
The office said that with the first agreement now in effect, both sides will discuss implementation details, address bilateral concerns, and share experiences through institutionalized cooperation. This includes establishing committees on issues such as trade facilitation and good regulatory practices, as well as creating a dialogue mechanism for SMEs, and liaison mechanisms to ensure timely communication and coordination.
On Monday, US Trade Representative Katherine Tai said, “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 represents an important step forward in strengthening the US-Taiwan economic and trade relationship.”
