The US and Taiwan have signed a comprehensive trade agreement that includes significant reductions in tariffs and opens new opportunities for American goods in the Taiwanese market. The document was released on February 12 and aims to strengthen economic ties between the two countries.
This is reported by Finway
New Terms for Trade and Investment
Under the terms of the agreement, Taiwan has agreed to purchase over $44 billion worth of liquefied natural gas and crude oil from the US. Access for American meat and dairy products, wheat, medical devices, and automobiles to the Taiwanese market will also be expanded. By 2029, Taiwan has committed to purchasing $15 billion worth of American civilian aircraft and their components, as well as investing approximately $25 billion in power generation equipment.
The signing of this agreement officially solidifies the arrangement reached in January to reduce tariffs from 20% to 15% on goods from Taiwan. At the same time, exceptions are provided for certain groups of products, such as generic pharmaceuticals, microchips, and smartphones.
Impact on High-Tech Sectors and Quality Standards
Among the innovations, Taiwan will allow the import of American ground beef and certain by-products, as well as harmonize its requirements for feed additive residues in meat according to international standards.
“The trade agreement with Taiwan will eliminate tariff and non-tariff barriers faced by US exports to Taiwan, expanding opportunities for American farmers, ranchers, fishermen, workers, small businesses, and manufacturers,” said US Trade Representative Jamison Greer.
According to US officials, this agreement builds on long-standing economic and trade relations and is expected to enhance the resilience of supply chains, particularly in high-tech sectors. While funding for semiconductor production in the US still requires further details, American companies plan to expand investments in key areas of Taiwanese industry, including semiconductors, artificial intelligence, defense, and biotechnology.