US signs tariff reduction agreement with Taiwan
The deal formalises what was agreed in January on cutting US tariffs on many Taiwanese exports from 20 per cent to 15 per cent and the concomitant increase in investment in the US technology sector
The US and Taiwan signed the agreement on the reduction of US tariffs on imports of goods from Taipei, along with the island's spending commitments on star-studded products.
The deal formalises what was agreed in January on cutting US tariffs on many Taiwanese exports from 20% to 15% and the concomitant increase in investment in the US technology sector. The trade agreement, which must be reviewed by Taiwan's parliament and is bound to irritate China, which is opposed to formal relations between Washington and Taipei, "will remove tariff and non-tariff barriers to US exports to Taiwan," commented US Trade Representative (USTR) Jamieson Greer.
"This agreement also builds on our long-standing economic and trade relationship with Taiwan and will significantly improve the resilience of our supply chains, particularly in high-tech sectors," Greer added in a note.
Taiwan plans to facilitate a 'long-term increase in its purchases of major US assets' until 2029, according to the outline released by the TSU. These include $44.4 billion in liquefied natural gas and oil, $15.2 billion in civil aircraft and engines, and $25.2 billion in electrical equipment, power grids and other products.
Washington pledged to reduce tariffs on Taiwanese goods under Taipei's commitment to 'take significant steps to promote stronger and reciprocal trade relations'. Other measures include Taipei's reduction of tariff barriers and preferential market access for US industrial and agricultural exports.
