First agreement under the US-Taiwan Initiative on 21st Century Trade officially goes into effect

Taipei: According to Taipei Times, a significant step toward enhancing trade and economic relations between Taiwan and the US was taken on Wednesday with the formal implementation of the first agreement under the US-Taiwan Initiative on 21st Century Trade.

This agreement covers a number of important areas of commerce, such as regulatory procedures, trade facilitation, customs administration, and anti-corruption initiatives. With both parties already engaged in talks to guarantee the full execution of the agreement’s terms, the Office of Trade Negotiations characterized the deal as a “significant milestone” in bilateral relations.

The agreement contains significant pledges to strengthen collaboration in sectors including the support of small and medium-sized businesses (SMEs) and domestic service industries. Committees on trade facilitation and good regulatory practices will be formed as part of the agreement, and SMEs will have a liaison mechanism to enhance collaboration and communication.

According to Taipei Times, both parties have emphasized the need of maintaining communication in order to resolve any issues and enable the seamless execution of the conditions of the agreement.

US Trade Representative Katherine Tai emphasized the significance of the deal, pointing out that it is a major step in enhancing economic ties between the US and Taiwan. “We are grateful to our Taiwanese partners for assisting us in achieving this significant goal.

The first agreement under our 21st Century commercial initiative has come into effect, which is a significant step in enhancing the commercial and economic ties between the United States and Taiwan,” Tai said in a statement. Bipartisan support for the deal was also shown by the US Congress, which examined and passed it in July without raising any issues. This agreement established a legal foundation for the increased commerce between the US and Taiwan.

Both sides are working on a second agreement under the Initiative in addition to the first one, which is anticipated to encompass other topics including labor, the environment, and agriculture. This second agreement is still being negotiated, and both countries are hopeful that it will be finalized.

The first agreement, which was signed in June 2022 as part of the US-Taiwan Initiative on 21st Century commercial, is the most extensive commercial pact between the two countries since 1979. According to the Taipei Times, Taiwan’s trade office voiced optimism that this deal will act as a “building block” towards a future free-trade pact.

Speaking to the media before a discussion with business leaders, Premier Cho Jung-tai described the day as “significant” for Taiwan-US ties and emphasized that it demonstrated both nations’ dedication to advancing bilateral cooperation in a number of areas.