Taiwan, U.S. ink first trade deal under the new structure. At heightened tensions with China over the democratically run island, Taiwan and the U.S. will sign the first pact under a new trade talks framework on Thursday.
After Washington omitted Taiwan from its Indo-Pacific Economic Framework, the U.S.-Taiwan Initiative on 21st Century Trade began talks last August.
Taiwan’s Office of Trade Negotiations said the framework’s first agreement would be signed in Washington on Thursday morning U.S. time.
Deputy U.S. Trade Representative Sarah Bianchi will attend the event, but the office did not elaborate.
The first element of their trade initiative—covering customs and border processes, regulatory standards, and small business—was agreed upon last month.
The USTR stated that after the initial agreement is signed, negotiations will begin on more complex trade areas like agricultural, digital trade, labor and environmental standards, state-owned companies, and non-market policies and practices.
The treaty is not likely to change goods tariffs. Still, proponents say it will deepen economic ties between the U.S. and Taiwan, increase U.S. exports to Taiwan, and help Taiwan resist Chinese economic pressure.
Beijing opposes all high-level engagement between Taiwan, which it claims, and the U.S., including trade discussions.
Taiwan fiercely rejects China’s sovereignty claims, which Beijing has been trying to impose on Taipei through military activities and war simulations.
