Taiwan President Tsai Ing-wen announced today the decision to resolve outstanding issues of beef and pork in bilateral trade with the United States, in an effort to remove obstacles and pave the way for advancing the bilateral Taiwan-US trade relationship. In her announcement from the Presidential Office, President Tsai indicated that the government would set maximum residue levels (MRL) for the chemical additive ractopamine for pork, and lift the restriction on imports for beef from cattle over thirty months in age, consistent with international scientific standards.
Taiwan’s Representative to the United States Bi-khim Hsiao stated, “in tackling agricultural market access issues which have domestic political complications, President Tsai has demonstrated strong resolve and determination to prepare Taiwan for negotiating a high-quality trade agreement with the United States.” Hsiao said “This is a timely effort, amidst international discussions on supply chain security and the need to stimulate economic recovery from the COVID-19 pandemic. A trade agreement will create the infrastructure to fortify and deepen the already significant trade relationship between reliable and like-minded partners.”
In the first half of 2020, Taiwan surpassed France and India in total trade volume with the United States to become the 9th largest trading partner to the United States. While semiconductor equipment and ICT products are among the fastest growing in two-way trade, Taiwan is the 7th largest export market for American agricultural products. In addition to being a vibrant democracy, Taiwan is ranked as the 11th freest economy in the world according to the Heritage Foundation’s 2020 Index of Economic Freedom.
Representative Hsiao said, “It makes both strategic and economic sense for Taiwan and the United States to negotiate a BTA. Strategically, Taiwan is a dynamic, indispensable, and like-minded partner of the United States in the Indo-Pacific region, and Taiwan’s economic resilience is critical to its survival as a beacon of democracy. Taiwan and U.S. industries are highly complementary, and a BTA would ease the burden of enterprise in conducting cross-border business, ensuring mutual market access and enabling legal harmonization in digital trade, intellectual property, medical device standards and many other areas. Both our governments are eager to attract investment that will create jobs, and this agreement would be a strong signal of confidence to businesses in both our countries. It is a win-win situation.”
On behalf of the Taiwan government, Representative Hsiao reiterated appreciation toward bipartisan members of the U.S. Congress for their strong support for deepening economic relations with Taiwan. Last December, 161 bipartisan members in the House of Representatives sent a joint letter to USTR Ambassador Lighthizer, urging him to consider negotiating a bilateral trade agreement. In addition, according to the 2020 Business Climate Survey of American businesses in Taiwan, a majority of respondents identified a BTA as important for their business and trade with Taiwan.
“Moving forward,” President Tsai said in her press conference, “Taiwan must become a critical force in the realignment of global supply chains. We have to strengthen links with economies around the world, and in particular, form a closer bond with our strongest strategic partner and global economic leader, the United States.”
