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Extensive reports on the U.S.-Taiwan relationship

AmCham is pleased to share a few recent think tank reports on the ever-deepening U.S.-Taiwan economic relationship.

No more foundational technology, value chain, nor partnership exists than those covered by our U.S.-Taiwan BTA Coalition partners at Project 2049 and the U.S.-Taiwan Business Council in their upcoming report on semiconductors. The report release will take place on June 8, at 2 p.m. EST. For more information, please visit U.S., Taiwan, and Semiconductors – A Critical Supply Chain Partnership (us-taiwan.org)

Widening the lens on the partnership, scan this timely update on the economic case for a Taiwan FTA (“the BTA”) from the Heritage Foundation. The BTA is a long-overdue development and until now, a quantitative case for the business and worker benefits of such an agreement has been missing. As the BTA Coalition has noted, AmCham hopes that the promising new “U.S.-Taiwan Initiative on 21st-Century Trade” announced last week by the U.S. Trade Representative will serve as springboard to a comprehensive agreement that provides market access benefits and meaningful further integration. To read the report by The Heritage Foundation, go to U.S.–Taiwan Free Trade Agreement: The Economic Case | The Heritage Foundation

To understand the “why” and “how” of expanding U.S. and multilateral economic ties with Taiwan, be on the lookout for Senior Associate at the Center for Strategic and International Studies (CSIS) and Global Taiwan Institute Adviser Robert Wang’s forthcoming report on the GTI’s website.

Additionally, GTI provides an excellent panel discussion that hits the highlights of the latter two studies.

The IPEF train has departed. Now transferring to the BTA track

Although Taiwan is not included as a core member of the Biden administration’s new regional trade pact, it may now have an opportunity to conclude a U.S.-Taiwan bilateral trade agreement (BTA). AmCham President Andrew Wylegala and Senior Advisor Don Shapiro make the case for more concerted action in both Taiwan and on Capitol Hill in this op-ed for CommonWealth Magazine.

To read the full article, please go to The IPEF train has departed. Now transferring to the BTA track|Insight|2022-05-23|web only (cw.com.tw)

To download the article, click here.

Further reading in Chinese – 【獨家】沒被納入印太經濟架構 鄧振中:台美將開啟新一輪經貿談判

Former Ambassador Kurt Tong Briefs AmCham Leaders

When AmCham Taiwan conducts its Doorknock missions to Washington, D.C., Kurt Tong is the kind of expert on U.S. Asia policy that the delegation seeks out for advice on its dealings with the U.S. government. A former U.S. Ambassador to APEC and Counsel-General in Hong Kong, Tong is now in the private sector as a partner at The Asia Group, a Washington-based strategic advisory firm founded by Kurt Campbell, currently the Biden Administration’s top official for Asia.

In a “virtual Doorknock” necessitated by the COVID pandemic, Tong shared his views on U.S.-Taiwan relations via video conference with 18 members of the AmCham Board and staff on May 25. The topics covered included the Biden Administration’s priorities with regard to Asia policy, trade policy, and the protection of sophisticated technology supply chains. Tong encouraged the Chamber to be “forceful and direct” in communicating its advocacy agenda to the U.S. government, including the need for early resumption of the “TIFA talks” trade negotiations.  

Open Letter: Seeking Vaccines from the United States to Ensure Supply Chains Stay Linked

The American Chamber of Commerce in Taiwan has issued a letter to the United States Department of State and The White House seeking to secure more vaccines for Taiwan.

The content of the open letter from Chairperson CW Chin is as follows:

On behalf of the over 1,000 members of the American Chamber of Commerce in Taiwan, the majority of whom participate in the supply chains for semiconductors, ICT goods, pharmaceuticals and other technologies critical to American jobs and prosperity, I convey our request that the United States act quickly to help Taiwan secure badly needed supplies of vaccines.

Recent COVID-19 outbreaks in northern Taiwan have placed enormous strains on manufacturing operations that are among the most complex and sensitive on the planet. As you set surplus vaccine distribution criteria, our Chamber wishes to underscore that Taiwan’s capacity to continue and even expand manufacturing output is in-trinsically linked to U.S. national economic interests. At the current juncture in America’s economic recovery further disruptions to the supply of semiconductors for the automobile sector, in particular, would be devastating.

As many Americans will recall, Taiwan provided significant help to the United States in the form of millions of sets of critically needed medical supplies at the outset of the pandemic last year. Taiwan’s performance combatting COVID has been the more remarkable given its exclusion from participation in key fora such as the World Health Assembly.

We appreciate the efforts from the White House and the Department of State to do everything possible to supply Taiwan with much needed vaccines.

Sincerely yours,
C.W. Chin
Chairperson
The American Chamber of Commerce in Taiwan

Deputy Minister C.C. Chen Addresses AmCham Luncheon

AmCham was honored to invite Deputy Minister of Economic Affairs Chen Chern-chyi (“C.C. Chen”) to speak on January 6 at its first luncheon of 2021 – and its first event as the American Chamber of Commerce in Taiwan – held in the Sherwood Taipei’s third-floor ballroom. Deputy Minister Chen addressed an audience of nearly 80 members and their guests, detailing the progress made at the inaugural U.S.-Taiwan Economic Prosperity Partnership Dialogue (EPPD) that took place last November.

AmCham Taiwan President Leo Seewald provided some opening remarks, introducing the speaker and briefing members on upcoming events. Seewald highlighted the importance of the EPPD as one of the growing number of avenues for meaningful engagement between Taiwan and the U.S. “We’ve always been focused on free trade agreements and bilateral trade agreements – the big stuff – but this is a different way to work toward those goals,” he said, before giving the floor to Deputy Minister Chen.

As the leader of the Taiwanese delegation to the EPPD, Chen had some particularly eye-opening insights into the current economic relationship between the U.S. and Taiwan, as well as where it is heading. In his speech, he noted that the U.S. Department of State-led initiative was aimed at encouraging strategic cooperation and ensuring economic security through prosperity.

The dialogue also included discussion on how to provide a platform for U.S. businesses to restructure their global supply chains, with an eye to promoting Taiwan as a capable, complementary, trusted partner in this process. Both sides view the following areas as advantageous for U.S.-Taiwan supply chain collaboration:

  • Semiconductors, communications, AI, and other cutting-edge technologies
  • Innovative green energy
  • Strategic medical stockpile
  • Electric vehicles

Chen emphasized that the EPPD is no less significant than the Trade and Investment Framework Agreement (TIFA) talks that took place between his ministry and the Office of the U.S. Trade Representative over several years – and which stalled out in 2016. It may even be as significant as a free trade agreement, he said, in that it represents a political commitment and a bipartisan consensus in Washington regarding Taiwan. It also stands for a “consensus between governments and the business community.”

Looking ahead, Chen said that the incoming Biden administration’s emphasis on improving the U.S. economy underscores the value of the EPPD and of Taiwan’s status as a strong economic partner. He called the dialogue a “living platform,” and noted its importance to strengthening the supply side of the U.S.-Taiwan economic relationship. However, a platform for advancing the market side is still needed. Therefore, Chen concluded, he and his colleagues in government will continue in their unwavering pursuit of a U.S.-Taiwan bilateral trade agreement moving forward.

Interested in attending our events? Join us at other upcoming events, click here.

Note: AmCham events are intended primarily for AmCham members and their guests. Many events are open to members’ guests and other non-members, but the attendance of any non-member must be approved in advance. AmCham reserves the right not to admit a non-member to any event without explanation.

Minister John Deng Addresses AmCham Luncheon

AmCham Taipei was honored to invite Minister without Portfolio John Deng, one of the Taiwan government’s chief experts on international trade, to speak on U.S.-Taiwan economic and trade relations at a special luncheon held in the Mandarin Oriental’s Grand Ballroom on October 22. Minister Deng previously served as chief representative at the Office of Trade Negotiations (2007-2008) and as minister of economic affairs (2014-2016). The Chamber was therefore delighted to have him share his insights on the current U.S.-Taiwan relationship, as well as on the prospects for a bilateral trade agreement (BTA) between the two partners.

Deng stressed the strong and stable nature of trade and investment between Taiwan and the U.S. Taiwan’s exports to the U.S. rose by 7.1% between January and September this year, despite the disruption caused by the COVID-19 pandemic. He also remarked that the economies of Taiwan and the U.S. – particularly in the areas of semiconductors and IC products – are highly complementary, making them natural trade partners.

No relationship is without its challenges, however. Although President Tsai Ing-wen removed a longstanding trade barrier when she announced in August that restrictions on the import of certain types of U.S. beef and pork would be eased starting next year, the move has met with some public criticism. In particular, the lack of response from the office of the U.S. Trade Representative has left some questioning the value of ending the import restrictions. The USTR’s focus on implementing the phase one trade deal with China may have been a factor in the agency’s silence, Deng noted.

Nevertheless, many positive signs have been coming from Washington recently. Deng highlighted evidence of bipartisan Congressional support for a U.S.-Taiwan trade agreement, including a joint letter signed by 161 U.S. Representatives and another signed by 50 Senators calling on the USTR to begin negotiations for a BTA with Taiwan. And the recent high-level visits to Taiwan by Health and Human Services Secretary Alex Azar and that of Undersecretary of State for Economic Growth, Energy, and the Environment Keith J. Krach indicate significant progress in the U.S.-Taiwan relationship.

These developments can serve as a solid foundation for future relations, regardless of the result of the U.S. presidential election in November, Deng concluded.

Interested in attending our events? Join us at other upcoming events, click here.

Note: AmCham events are intended primarily for AmCham members and their guests. Many events are open to members’ guests and other non-members, but the attendance of any non-member must be approved in advance. AmCham reserves the right not to admit a non-member to any event without explanation.

Taiwan-USA Trade and Investment Networking Center Opens in Taipei

AmCham Taipei on December 18 participated in the opening ceremony of the Taiwan-USA Trade and Investment Networking Center. The center is the result a collaborative effort between the government-sponsored Taiwan External Trade and Development Council (TAITRA), the American Institute in Taiwan (AIT), the American State Offices Association (ASOA), and AmCham Taipei. It is designed to strengthen commercial ties between Taiwan and the U.S. by facilitating cooperation between business partners, and offering advisory, analysis, and referral services, among other functions.

TAITRA Chairman James Huang delivered the ceremony’s opening speech, highlighting the special partnership between Taiwan and the U.S., which he said has “enabled Taiwan to be one of the most productive members of the global economy.” In order to take this relationship to the next level, Huang said, a channel was needed to advance comprehensive coordination among Taiwanese and U.S. businesses. Out of this necessity, the idea for the center was born.

In his remarks, AIT Director Brent Christensen stressed the vision for the center as “a one-stop, all-purpose platform to advise and assist Taiwan and American enterprises in expanding two-way trade and investment between the United States and Taiwan.” He emphasized that trade between Taiwan and the U.S. increased by 13.6% in the first 11 months of 2019, and that both partners are important sources of investment for the other. He also stated his desire for the center to play a role in promoting the U.S. government’s SelectUSA Investment Summit, an annual conference held in Washington D.C.

Deputy Minister of Economic Affairs Wang Mei-hua, who gave concluding remarks, pointed to the large amount of return investment by Taiwanese companies that have decided to reshore some of their high-value manufacturing operations from China as a result of the U.S.-China trade dispute. She said this development will make Taiwan an even more attractive location for international trade and investment.

The center is being housed within the TAITRA offices in the International Trade Building, 333 Keelung Rd., Sec. 1, part of the Taipei World Trade Center complex.

 

AmCham’s “Underground Ambassador” recalls the crisis of 1979

AmCham Taipei held a special luncheon on April 18 at the Shangri-La’s Far Eastern Plaza Hotel, to reflect on the important role it played in contributing to the drafting of the Taiwan Relations Act 40 years ago.

We were honored to have former Chairman Robert Parker (office title then President) back to reminisce about the events following the U.S. decision to sever ties with Taiwan. He showed video clips of his testimony before U.S. Congressional committees in February 1979 that stressed the need to strengthen the draft legislation prepared by the Carter administration to govern future U.S. Taiwan relations. AmCham urged that the bill include U.S. support for Taiwan’s security and establish a clear legal foundation for interaction between the two governments.

Watch more clippings of Parker’s testimony: Part 2, Part 3, Part 4

In addition, AmCham at that time stepped forward to ensure that various U.S. community institutions, including the Taipei American School, American Club, English-language radio station, and youth organizations could continue to operate smoothly after derecognition. It’s a period the Chamber looks back on with pride, and one of the prime examples of how the organization works for the best interests of both the U.S. and Taiwan.

Robert Parker was welcomed by AmCham President William Foreman, former Presidents, Taiwan Business TOPICS Editor-in-chief Don Shapiro, and members of the Chamber.

2019 Hsieh Nien Fan: A Night for Commemoration

AmCham Taipei’s 2019 Hsieh Nien Fan banquet, held April 10 at the Grand Hyatt Taipei, paid tribute to the Taiwan Relations Act on its 40th anniversary. The law, which has enabled U.S.-Taiwan relations to continue smoothly without formal diplomatic recognition, was signed by U.S. President Jimmy Carter on exactly the same date in 1979.

The banquet has been held annually since 1970 as a way to express AmCham’s thanks to the Taiwan government for its cooperation in the past year. This year’s event was attended by 682 AmCham members and guests, including 143 government officials.

The keynote speakers were President Tsai Ing-wen and U.S. Deputy Assistant Secretary of State David Meale, with additional remarks by AmCham Chairman Leo Seewald (see the full remarks here) and American Institute in Taiwan Director Brent Christensen. Video messages on congratulations were shown from four U.S. Senators: Corey Gardner (R-CO), Tim Kaine (D-VA), Pat Roberts (R-KS), and Marco Rubio (R-FL).

Besides the President, the high-ranking Taiwanese officials in attendance included Secretary General of the National Security Council David Lee, Minister without Portfolio John Deng, Foreign Minister Joseph Wu, Minister of the National Development Council Chen Mei-ling, Chairman of the Financial Supervisory Commission Wellington Koo, Minister of Health and Welfare Chen Shih-chung, Minister of Science and Technology Chen Liang-gee, Minister of Justice Shawn Tsai, and several members of the Legislative Yuan.

The New York Times reported on President Tsai’s comments in her speech that Taiwan needs to continue diversifying Taiwan’s economy to prevent over-reliance on China. “We must make sure Taiwan’s economic and security position remains on the right track,” it quoted her as saying.

The President’s speech also stressed the importance of the government’s relationship with AmCham Taipei. “We will continue to work hand-in-hand to find ways to bring more jobs and investment to Taiwan,” she said.

Meale’s remarks cited the remarkably strong commercial relationship between the U.S. and Taiwan. “It is in the interest of the United States to have such an important trade and investment partner that is notable both as a democracy and as a well-run economy,” he told the audience.

In his comments, Christensen noted that Taiwan is the eleventh largest trading partner of the United states, and also “one of the key players in the high-tech global supply chain.”

2019 Hsieh Nien Fan – Toast

The Master of Ceremonies for the evening was Peter Dernbach.

A host of generous sponsors helped make the event possible: Platinum Sponsor Citi; Gold Sponsors Corning, Franklin Templeton Investments, and Standard Chartered Bank; Wine & Liquor Sponsors Diageo and Sergio Valente; Silver Sponsors 3M, HSBC, JTI, and Micron; Bronze Sponsors Air Canada, Air Products, Bechtel, Dun & Bradstreet, GE, Philip Morris International, Semi, and Versum Materials; and General Sponsors Invisalign, Amgen, Grand Hyatt Taipei, IBM, Johnson & Johnson, P&G, and the Tobacco Institute of the Republic of China.