Taiwan, US Strengthen Ties in SecondPhase of Trade Talks

Taiwan and the United States have entered the second phase of trade talks under the U.S.-Taiwan Initiative on 21st-Century Trade, further solidifying bilateral ties between the two nations. The in-person negotiating round, held in Taipei from April 29 to May 3, 2024, focused on complex areas such as agriculture, labor, digital trade, environment, and state-owned enterprises.

Why this matters: The strengthening of trade ties between Taiwan and the US has significant implications for the global economy and geopolitical landscape, particularly in the context of China's growing influence. As the trade talks progress, they may also set a precedent for other countries seeking to deepen economic relationships with Taiwan, potentially challenging China's "one China" policy.

The negotiations were led by the Office of the United States Trade Representative (USTR) and the Taipei Economic and Cultural Representative Office in the United States (TECRO). Assistant United States Trade Representative for China, Mongolia, and Taiwan Affairs Terry McCartin headed the U.S. delegation, which included officials from the American Institute in Taiwan (AIT), the Department of Agriculture, the Department of Labor, and the Department of State.

During the talks, the two sides exchanged views on proposed texts in areas such as agriculture, labor, and the environment, engaging in productive conversations. The U.S. raised concerns over Taiwan's labor and environmental practices, including the use of forced labor and overfishing by Taiwan's distant-water fishing fleet. In response, Taiwan's government has pledged to enhance related laws and increase labor-related inspections.

The talks also addressed Taiwan's desire for increased access to the U.S. market for its agricultural products, such as mangoes, pineapples, pork floss, and sausage. However, the U.S. is pushing for relaxed regulations on pork imports, an issue Taiwan is hesitant to address until after the political transition on May 20.

The five-day talks concluded without the signing of any agreements, but both sides reached an understanding on the importance of transparency and public participation in environmental protection. They also agreed to conduct more video conferences and make efforts to reduce carbon emissions. Minister Without Portfolio John Deng (鄧振中) stated, "The two sides gained better understanding of bilateral rules and differences on issues regarding labor rights protection, trading of agricultural products and environment protection."

Thetrade talksare being conducted consistent with the United States' one China policy, guided by the Taiwan Relations Act, the three U.S.-China Joint Communiques, and the Six Assurances. The negotiations mark a significant step forward in strengthening bilateral ties between the U.S. and Taiwan, with two-way trade between the two nations totaling $116.8 billion last year.

The second phase of trade talks follows the first agreement signed by representatives of AIT and TECRO on June 1, 2023. Analysts predict that reaching an agreement on the second phase will be more challenging due to the complexity of the issues involved. Mainland China is closely monitoring thetrade talksand is likely to condemn any deal that sidelines its role in Taiwan's economic affairs.

Key Takeaways

• Taiwan and the US enter 2nd phase of trade talks under the U.S.-Taiwan Initiative on 21st-Century Trade.
• Talks focus on complex areas like agriculture, labor, digital trade, environment, and state-owned enterprises.
• US raises concerns over Taiwan's labor and environmental practices, including forced labor and overfishing.
• Taiwan seeks increased access to US market for agricultural products, while US pushes for relaxed pork import regulations.
• Talks conclude without agreements, but both sides agree on importance of transparency and public participation in environmental protection.