TAIPEI (Taiwan News) — The KMT on Friday said it will carefully review the Taiwan-US Agreement on Reciprocal Trade, citing concerns over potential impacts on food safety and domestic industries.
President Lai Ching-te (賴清德) said the agreement secures favorable treatment on reciprocal tariffs and products subject to Section 232 of the US Trade Expansion Act of 1962, per CNA. He described the deal as a breakthrough, saying average tariffs were reduced to 12.33%.
The KMT expressed reservations about Lai’s characterization, arguing that Taiwan may have made significant concessions in areas such as food safety standards and the pharmaceutical approval process. The party urged the government to outline support measures for industries that could be adversely affected.
The KMT said it will conduct a thorough legislative review of the agreement. The TPP also voiced concerns, accusing the government of insufficient transparency, per SETN. The party said lawmakers had not been fully briefed on potential concessions made to the US.
The TPP also cited reported commitments including US$250 billion (NT$7.9 trillion) in private-sector investment, a US$250 billion government-backed credit guarantee and the relocation of a reported 40% of Taiwan’s semiconductor production capacity to the US.
It called on the government to provide a comprehensive industry impact assessment and strengthen environmental and labor protections. The party further questioned how Taiwan would manage US$84.8 billion in purchases of US goods, excluding military procurement.
Former TPP Chair Ko Wen-je (柯文哲) criticized the reported shift of 40% of TSMC’s capacity to the US, saying that “selling out Taiwan to the United States” would amount to a betrayal, per Newtalk. He urged the administration to submit the full text of the Agreement on Reciprocal Trade to the Legislative Yuan for review.
The ruling DPP, meanwhile, praised the agreement, per FTV. The party said that it would help Taiwan further integrate into the global economy and strengthen technological cooperation among democratic partners.
National Central Professor Ta-jen (吳大任) said that aside from investment and credit guarantee concerns, the government had performed well in negotiations. On food safety, he said the administration maintained labeling requirements for bioengineered products, but warned that allowing imports of minced beef could raise concerns about ractopamine exposure.
Wu said steep tariff reductions on automobiles and health supplements would benefit consumers but could pose challenges for Taiwan’s domestic auto industry. He added that short-term pressure might spur long-term reforms and improve competitiveness.
Citing other experts, Wu said one of the biggest challenges would be investment in the US, where establishing new facilities could cost four times as much for semiconductor firms such as TSMC and more than 10 times as much for environmentally sensitive industries such as chemicals, per UDN.
He also warned that large-scale credit guarantees could expose Taiwan’s financial system to risk and that increased demand for US dollars could put downward pressure on the Taiwan dollar.
