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Returning With American Optimism

There has seemingly never been more resounding advocacy for Taiwan on the Hill. America’s message during AmCham’s 2024 Doorknock trip was clear: support for Taiwan is strong ad bipartisan.

Almost 20 senior members and staff traveled to Washington, D.C., in late June as the Chamber’s Doorknock returned in full glory after a five-year hiatus. They met with members of Congress, the Senate, think tanks, and other important stakeholders to discuss pressing issues. At the top of the agenda was double taxation avoidance, the U.S.-Taiwan Initiative on 21st Century Trade, resilience and defense, and the upcoming elections.

Discussions revolved around key issues like robust supply chains, the digital economy, and the future of the bilateral relationship. Each topic highlighted the strategic importance of Taiwan in the global arena, particularly in technology and defense sectors.

Supply Chain Resilience

One of the pivotal discussions during the Doorknock sessions focused on enhancing supply chain resilience, emphasizing Taiwan’s critical role in the global semiconductor and advanced computing industries. Dialogue shed light on U.S. initiatives aimed at more deeply integrating Taiwan into its industrial and technological frameworks. This strategic integration is seen as essential to bolster both economies against potential economic coercion by China.

Participants discussed the necessity of building a highly durable supply chain that can endure geopolitical tensions and reduce vulnerabilities to disruptions. The United States and Taiwan are exploring streamlined trade policies and investment climates to facilitate smoother and more predictable business operations.

Digital Economy

Meetings revealed concerns about policy continuity and clarity, particularly with the recent changes in Taiwan. Industry leaders called for more definitive requirements in energy resilience, secure cloud services, and critical supply stockpiles. The strategic digital trade ties are being fortified, recognizing Taiwan’s vital role despite challenges from geopolitical tensions.

A significant focus was on cybersecurity as a cornerstone of digital policy, aiming to protect the integrity of digital trade and infrastructure. The U.S. side encouraged Taiwan to adopt proactive regulations for AI and other digital technologies, aligning with international standards like those in the EU and the United States.

Implications of the Double Taxation ADTA Bill

The ADTA bill was another critical topic, with broad bipartisan support acknowledged as crucial for economic cooperation between the United States and Taiwan. The bill’s passage, however, faces delays due to its association with more contentious legislative issues. Resolving double taxation would not only facilitate smoother operations for companies like TSMC and its SME suppliers but also strengthen economic ties and improve Taiwan’s strategic positioning globally.

U.S.-Taiwan Defense and Security Cooperation

Discussions on defense and security highlighted the bipartisan support in the States for Taiwan and the strategic military assistance being provided, including expedited delivery of military equipment. This support seeks to advance Taiwan’s immediate defense capabilities against the rising military threats from China, focusing on both traditional and asymmetric warfare readiness.

Looking Forward

Ultimately, the sessions have set a foundational dialogue for future economic and security initiatives, ensuring that both Taiwan and the United States can navigate the complexities of their bilateral relationship in an increasingly uncertain global environment.

In the upcoming month, AmCham will invite members for a more in-depth dissection of its findings from the 2024 Doorknock.

2019 CEO Mission Holds Successful D.C. Visit

AmCham Taipei’s recent delegation to Washington, D.C. came away encouraged by prospects for improved economic relations between Taiwan and the U.S.

“The US-Taiwan relationship continues to move in a positive direction, and we’re optimistic about the two sides eventually resuming TIFA talks after a nearly three-year hiatus,” said Chamber President William Foreman, referring to the main channel of trade negotiations between the two countries.

“The U.S. government also appears open to considering other ways to strengthen the relationship, such as entering into negotiations on the equivalent of a chapter of a free trade agreement,” Foreman added.

AmCham is therefore urging the Taiwan government to continue to push for U.S. consideration of Taiwan as a suitable candidate for a bilateral trade agreement. Successful TIFA (Trade and Investment Framework Agreement) consultations could help pave the way for such consideration.

Formerly known as the “Doorknock,” the annual trip was rebranded this year as AmCham Taipei’s “CEO Mission to Washington” to stress the delegation’s strategic and high-level nature. Conducted the week of June 17, the mission was led by Foreman together with Chamber Chairman Leo Seewald.

The group held a total of 35 meetings with executive branch agencies (including the National Security Council, State Department, and Office of the U.S. Trade Representative), members of Congress and their staffs, think tanks, the Taipei Economic and Cultural Representative Office, and others concerned with U.S.-Taiwan economic relations.

Delegation with the National Security Council

Delegation with the State Department

Delegation with the U.S. Trade Representative

The heightened frustration in the U.S. over China’s unfair trade practices has led to increased support for bolstering economic ties with Taiwan, the delegation found. At the same time, Taiwan’s restrictions on the importation of certain U.S. beef and pork products remains a serious trade irritant.

Delegation with chairman of the American Institute in Taiwan, Ambassador James Moriarty

As always on the annual visit to Washington, AmCham stressed Taiwan’s economic and strategic importance for the U.S. It called attention to Taiwan’s status as America’s 11th largest trading partner, its vibrant democracy and adherence to rule of law, and deep involvement in the supply chains of leading U.S. technology companies.

2018 AmCham Doorknock – June 18-22

The Chamber’s annual “Doorknock” visit to Washington DC this year took place between June 18 and 22. The group held a total of 45 meetings, including calls on the State Department, Commerce Department, National Security Council, Office of the U.S. Trade Representative, dozens of Congressional offices, and leading think tanks. The delegation, which was led by AmCham President William Foreman and Vice Chairman Leo Seewald, was also invited for tea by Taiwan’s representative in Washington, Stanley Kao, at the Twin Oaks estate owned by Taiwan.

Delegation members visit the State Department.

The Doorknock group with Commerce Department officials.

A central purpose of the Doorknock was to remind contacts in Washington of “why Taiwan matters,” including its rank as the United States’ 11th largest trading partner, integral role in the supply chain of major American technology companies, vibrant democracy, and sharing of basic American values. The delegation also urged the U.S. government to schedule regular consultations with Taiwan under the bilateral Trade and Investment Framework Agreement (TIFA) umbrella, explore entering into negotiations for a bilateral trade agreement, and send more high-level American officials on visits to Taiwan. In both executive and legislative branch offices, the group heard expressions of desire to deepen the economic relationship between the United States and Taiwan, especially if existing trade differences surrounding the export of U.S. meat products could be resolved.

The delegation was received at the U.S. Trade Representative.

Delegation members with Congressman Gregg Harper (R-MS).

Besides Foreman and Seewald, other members of the delegation included Wendy Lin, General Manager of Johnson & Johnson Taiwan and a co-chair of AmCham’s Pharmaceutical Committee; Petra Jumpers, General Manager of Eli Lilly and Co. (Taiwan) and another Pharmaceutical Committee co-chair; Christine Kuan, External Affairs & Market Access Director at Bristol-Myers Squibb (Taiwan), representing the Public Health Committee; Natasha Lai, Senior New Product Planning & Government Affairs Manager for Eli Lilly (Taiwan); T.K. Lo, Technical & Regulatory Manager at Amway Taiwan; Lynn Cinelli, Director of Emerging Markets Public Policy for Merck Sharp & Dohme; Nathan Kaiser of the law firm Eiger; Don Shapiro, AmCham Senior Director and Editor-in-Chief of Taiwan Business TOPICS; and Any Chang, AmCham Senior Director for Government and Public Affairs.

For many meetings they were joined by the Washington-based representatives of AmCham member companies or cooperative organizations, including AdvaMed, Amway, Bechtel, Cigna, Herbalife, Medtronic, Microsoft, Prudential, and Versum Materials.

While traversing the halls of Congress, the AmCham Doorknockers met a large delegation of Taiwanese-American businesspeople from the World Taiwanese Chambers of Commerce who were on a similar mission.

2017 Doorknock Delegation to Washington

AmCham Taipei’s 2017 Doorknock visit to Washington D.C. from June 26 to 30 conducted a total of 45 meetings with U.S. government executive branch agencies (including the State Department, Commerce Department, and the Office of the U.S. Trade Representative), Congressional offices, think tanks, the U.S. Chamber of Commerce, the Taipei Economic & Cultural Representative office in the U.S. (TECRO), and others interested in the U.S.-Taiwan economic relationship.

Delegation members with U.S. House Foreign Affairs Committee Chairman, Congressman Ed Royce

The group was led by Chamber Chairman Albert Chang, Vice Chair Dan Silver, and President Andrea Wu, and also included Raghavendra Shenoy, co-chair of the Medical Devices Committee, Board Supervisor, and General Manager of Johnson & Johnson Medical Taiwan Ltd.; Jenny Zheng, co-chair of the Pharmaceutical Committee and Managing Director of Johnson & Johnson Taiwan Ltd.; Emily Chiang of Medtronic (Taiwan) Ltd.; Stephen Y. Tan of K&L Gates; William Vocke of the Foundation for Scholarly Exchange (Fulbright Taiwan); Lynn Cinelli of MSD Taiwan; Don Shapiro, AmCham Taipei Senior Director; and Amy Chang, AmCham Taipei Senior Director for Government & Public Affairs. They were joined for various meetings by the Washington representatives of such member companies as Bechtel, Cigna, Dell, Eli Lilly and Company, Merck, and Microsoft.

Delegation members with Congressman Ted Yoho

AmCham Taipei Chairman Albert Chang with Congressman Ted Yoho

“A lot has changed in Washington since the Trump administration took office, including a new emphasis on targeting U.S. trade deficits with its trading partners, so it was very useful for us to hear from people first-hand about their expectations for the U.S.-Taiwan relationship,” said Andrea Wu. “For the most part, we heard a hard line on outstanding trade issues from the executive agencies, but tempered by widespread expressions of support for Taiwan from members of Congress.”

Team members with U.S. Senator Ron Wyden

A full report on the Doorknock will appear in the August issue of Taiwan Business TOPICS, both the print and online editions.

Post-Doorknock High-level Meetings

Following the annual AmCham Taipei Doorknock visit to Washington D.C., the Chamber leadership each year holds a round of meetings with high-ranking government officials to brief them on the results of the trip.

On July 27, a Chamber delegation led by Chairman Dan Silver met with Premier Lin Chuan at the Executive Yuan, discussing such issues as prospects for the Trans-Pacific Partnership, regulatory coherence, energy policy, labor-related regulations, and the investment climate. Also in attendance were representatives from the National Development Council, Ministry of Economic Affairs, Ministry of Foreign Affairs, and Ministry of Labor.

2016-amcham-post-doorknock-chairman-dan-silver

Similar delegations called on Secretary General Joseph Wu of the National Security Council on August 5 and on Vice Minister Leo Lee, substituting for Minister David Lee, at the Ministry of Foreign Affairs on August 8.

Additional meetings with other government ministries and relevant organizations are being scheduled

2016 post-doorknock

2016 AmCham Taipei Washington Doorknock

2016 DK Senator John McCain

AmCham Taipei conducted its 2016 Doorknock mission to Washington D.C. from June 20 to 24. Pictured above: Arizona Senator John McCain with AmCham Chairman Dan Silver and other members of the group.

This year’s AmCham Taipei Doorknock delegation, led by Chairman Dan Silver and President Andrea Wu, stressed the importance – for both Taiwan and the U.S. – of Taiwan entering the Trans-Pacific Partnership (TPP) when it expands beyond the original 12 members.

At some points dividing into teams, the group met with representatives from 48 different offices and organizations, calling on members of the U.S. Executive Branch, U.S. Congress, the Taiwan Representative, and others. (See the full list below)

Doorknock Delegation with Congressman Matt Salmon (Arizona-R)

Delegation members with Congressman Matt Salmon (R-Arizona)

Key Takeaways

  • Although free-trade agreements have been the object of much criticism in the U.S. during this election year, the U.S. government remains committed to seeing the pact come into being. Progress is being made toward gaining broader U.S. industry support by resolving points of dissatisfaction that sectors such as pharmaceuticals and financial services have had with the TPP text.
  • A Congressional vote on TPP in a year-end “lame duck” session is a strong possibility, though not a certainty. Otherwise the vote would need to be either early in the next presidential term or after the 2018 mid-term elections.
  • Serious consideration of second-round TPP candidates will need to wait for the agreement’s entry into force. But Taiwan and Korea are being widely mentioned, along with the Philippines, Indonesia, Thailand, and Colombia.
  • China is already making known its opposition to Taiwan entering into TPP. Taiwan therefore needs to take urgent steps to demonstrate its qualifications – beyond any doubt – by showing firm commitment to international standards and practices. It also needs to work on resolving outstanding major trade issues with all 12 TPP countries.
2016 DK Ambassador Holleyman- USTR (1)

The delegation met with Ambassador Robert Holleyman, the Deputy U.S. Trade Representative

  • Preparations are under way for the annual U.S.-Taiwan TIFA talks to be held in Washington in the second half of the year. The U.S. side emphasizes the importance of making concrete progress on the various issues that will be on the table.
  • AmCham Taipei’s proposal for a second-generation Administrative Procedure Act met with enthusiastic support from many offices. There is appreciation that a single notification platform for proposed regulatory changes, ample time for the public to comment, and a mechanism for government agencies to respond would usher in a much more transparent and effective regulatory regime.
  • The U.S. government has been increasingly engaging with Taiwan in a wide variety of spheres. As the U.S. moves to devote more attention to Asia and the Tsai administration seeks to diversify Taiwan’s trade and investment, there should be more and more opportunities for productive cooperation between Washington and Taipei.
Delegation with Representative Erik Paulsen (Minessota)

Team members with Congressman Erik Paulsen (R-Minnesota)

 

Visits

U.S. Executive Branch

  • National Security Council
  • Department of State
    • Bureau of East Asian and Pacific Affairs
    • Bureau of Economic and Business Affairs
  • Office of the U.S. Trade Representative (USTR)
  • Department of Commerce – International Trade Administration
  • Department of Health and Human Services
  • American Institute in Taiwan/Washington
2016 DK Asst Secretary Kumar- Commerce

At the Department of Commerce, the group met with Arun Kumar, the Assistant Secretary for Trade Promotion

U.S. Congress

  • Offices of 10 Senators and 15 Representatives
  • House Ways and Means Committee staff
  • Senate Foreign Relations Committee staff
  • Congressional Research Service
2016 DK Senator Grassley

AmCham President Andrea Wu and Iowa Senator Chuck Grassley

Other Organizations

  • AdvaMed
  • Asia Society Policy Institute
  • Brookings Institution
  • Council for Strategic and International Studies
  • DPP Liaison in Washington
  • Emergency Committee for American Trade (ECAT)
  • National Foreign Trade Council
  • Peterson Institute for International Economics
  • PhRMA
  • Samuels International Associate
  • U.S. Chamber of Commerce
  • U.S.-Taiwan Business Council
  • U.S. -Taiwan Business Forum
  • U.S. Green Building Council

Taiwan Representative

  • Taipei Economic and Cultural Representative Office