Taiwan, US Sign First Agreement Under Bilateral Trade Initiative - Taipei

MOSCOW (UrduPoint News / Sputnik - 02nd June, 2023) Taiwan and the United States have signed the first agreement within the framework of the bilateral trade initiative almost a year after its launch, the Taiwanese Office of Trade Negotiations announced.

"On June 1, 2022, Taiwan Executive Yuan Minister John Deng and Deputy United States Trade Representative Sarah Bianchi held a virtual meeting to announce the launch of the U.S.-Taiwan Initiative on 21st-Century Trade in an effort to deepen the economic and trade relationship between Taiwan and the United States in concrete ways," the office said in a statement.

The ceremony of signing the agreement took place at the American Institute in Taiwan (AIT), which is in fact serves as a US embassy.

Following the ceremony, the Taiwanese official said that this agreement is the most ambitious and comprehensive since 1979.

"The comprehensive, sustainable and extensive scope of this Initiative should serve as an ambitious roadmap for negotiations for reaching agreements with high-standard commitments and economically meaningful outcomes," the statement read.

Taiwan also expressed hope that this development will facilitate the country's will efforts on joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP.)

Taiwan's |Central news Agency reported that the new agreement does not cover tariff cuts or deductions, but describes practices and procedures aimed at optimizing and strengthening bilateral trade relations.

Under the agreement, the parties commit to work on facilitating bilateral trade and investment flows, improve regulatory practices, promote anti-corruption measures, minimize unnecessary border formalities, and encourage the development of small and medium-sized businesses.

The deal also provides for the creation of a "fund" to enable both sides to resolve trade and investment issues and discuss opportunities over time.

The talks on the initiative was announced in August 2022. China was unhappy with the announcement and demanded that the US stop any official contacts with Taiwan, as well as negotiations over a formal trade and economic agreement.