American Chamber of Commerce in Taipei – Chinese National Association of Industry & Commerce, Taiwan 

Joint Statement on a U.S.-Taiwan Bilateral Trade Agreement

Our two organizations – respectively the leading institutions representing domestic and American business enterprises operating in Taiwan – call on the U.S. and Taiwan governments to begin negotiations for a bilateral trade agreement.

President Tsai Ing-wen’s August 28 announcement that Taiwan will ease restrictions on the import of U.S. beef and pork eliminates what had been a major obstacle to entering into such an agreement.

In fact, the appropriateness of concluding a U.S.-Taiwan BTA has long been evident. The U.S. and Taiwan are among each other’s most important trading partners, and both are committed to the principles of fair, transparent, and mutually beneficial trade relations. In addition, the two sides share an adherence to democratic values, dedication to the rule of law and intellectual property rights, and devotion to upholding peace and stability in the Indo-Pacific region.

Recent developments have further strengthened the rationale for concluding a BTA. In the wake of U.S.-China trade tensions and the COVID-19 pandemic, a widespread reconfiguration of global investment and procurement practices is underway amid increasing concern about the security of supply chains. The result has been rapid growth in the level of integration between the U.S. and Taiwan economies, especially in collaboration between companies in the critical area of semiconductors and other advanced technologies.

In the first half of 2020, Taiwan moved up to ninth place on the list of U.S. trading partners, and the U.S. has long ranked as Taiwan’s second-largest trading partner. Total bilateral trade for the first half of 2020 came to nearly US$43 billion.

Simulation studies carried out by the Taipei-based Chung Hua Institution for Economic Research show substantial economic advantages from a BTA for each side in terms of tariff reductions and service-sector liberalization. Additional gains could be achieved from agreement on digital trade rules.

BTA negotiations would also present an ideal opportunity to resolve any remaining trade issues between the two sides, encouraging further increases in the flow of trade and investment in both directions.

As business organizations, our focus is on the economic benefits to be derived from a BTA, but we also recognize that foreign policy and national security considerations often figure in the U.S. selection of prospective BTA counterparts. In those aspects as well, we believe that such a trade agreement would further the common objectives of both Washington and Taipei for regional peace and stability in the Indo-Pacific. During this period of flux and adjustment to a “new normal,” Taiwan exemplifies the kind of reliable partner that the U.S. needs for both economic and security reasons.

Indeed, the current atmosphere appears especially favorable for additional steps to bolster the bilateral relationship. Passage of the Taiwan Allies International Protection and Enhancement Initiative (TAIPEI) Act early this year was a strong indication of U.S. Congressional support for Taiwan, and Taiwan’s reliable handling of the COVID-19 pandemic and donation of protective gear to the U.S. won it considerable attention and good will in the U.S.

In the interest of the continuing prosperity and welfare of both the U.S. and Taiwan, our organizations fervently urge the two governments to begin work without delay toward establishment of a bilateral trade agreement.

For more information, please contact:

Patrick Lu
[email protected]
(02) 2718-8226 Ext. 213

Gwenyth Wang-Reeves
[email protected]
(02) 2718 8226 #314