Executive Yuan Spokesperson Lo Ping-cheng, Minister without Portfolio John Deng, Foreign Minister Joseph Wu and Economic Affairs Minister Wang Mei-hua held a press conference Wednesday on achievements in strengthening Taiwan-U.S. economic and trade relations. The launch of a U.S.-Taiwan Initiative on 21st-Century Trade was officially announced, whereby the two countries will develop concrete ways to deepen their economic and trade relationship. This initiative can serve as a roadmap to promote a trade agreement, which will further assist Taiwan's efforts to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Spokesperson Lo said the intensification of the U.S.-China trade conflict, the impact of the pandemic on the international economy, and the emergence of stark supply chain issues have led to widespread realization among many countries regarding the crucial position Taiwan holds in the competition between the U.S. and China as a global semiconductor technology and manufacturing hub. In light of this, U.S. President Joe Biden on taking office promptly resumed Trade and Investment Framework Agreement (TIFA) talks and continued the second annual Economic Prosperity Partnership Dialogue with Taiwan. Under the TIFA framework, Wednesday's announcement of the U.S.-Taiwan Initiative on 21st-Century Trade will promote concrete action to strengthen Taiwan-U.S. trade relations.
Minister Deng indicated that future negotiations will cover 11 areas: trade facilitation, regulatory practices, agriculture, anti-corruption, supporting small and medium-sized enterprises in trade, harnessing the benefits of digital trade, promoting worker-centric trade, supporting the environment and climate action, standards, state-owned enterprises, and non-market policies and practices. The first meeting under the initiative will take place later this month in Washington, D.C.
The initiative can serve as a roadmap for promoting a trade agreement due to its comprehensive framework, expandability and broad content, Minister Deng continued. The initiative also aims for high-standard commitments, which will aid Taiwan's bid for membership in the CPTPP.
Foreign Minister Wu pointed out that the international geostrategic situation has changed dramatically in recent months. Taiwan, sitting on the frontline against authoritarian aggression, is home to advanced semiconductor and high-tech industries and is the most reliable partner for America and other like-minded countries. He hopes the new initiative will set an example for Indo-Pacific economic cooperation and help Taiwan gain entry to regional economic integration blocs like the CPTPP and the Indo-Pacific Economic Framework for Prosperity.
During a Cabinet meeting Thursday, Premier Su Tseng-chang also reiterated that as Taiwan holds an essential position in the global supply chain, the U.S. government realizes that it must deepen its economic and trade ties with Taiwan to ensure the security and resilience of the global supply chain. Furthermore, Taiwan is on the frontline of free and democratic nations resisting authoritarian regimes, highlighting the significance of its geostrategic position and the importance of Taiwan's security to the peace and stability of the Asia-Pacific region.
The U.S. State Department stated on its Taiwan fact sheet webpage published this May that, "As a leading democracy and a technological powerhouse, Taiwan is a key U.S. partner in the Indo-Pacific." The Biden administration also continues to affirm its "rock-solid" commitment to Taiwan under the Taiwan Relations Act. As well, Senator Tammy Duckworth during her Tuesday visit with Premier Su said the United States stands with Taiwan. These developments once again highlight that Taiwan and the U.S. are each other's priority trading partners, which is of great strategic importance.