First agreement under Taiwan-U.S. trade initiative takes effect

Taipei/Washington, Dec. 10 (CNA) The first agreement under the Taiwan-U.S. Initiative on 21st-Century Trade officially came into effect on Tuesday, marking a "significant milestone" in bilateral trade relations, according to Taiwan's Office of Trade Negotiations.

The agreement regarding trade between the United States and Taiwan covers commitments to customs administration and trade facilitation, regulatory practices, rules for running domestic service industries, anti-corruption and small- and medium-sized enterprises.

The Executive Yuan's Office of Trade Negotiations said in a statement Tuesday that both sides will continue to discuss implementation details and share any concerns.

This includes the establishment of committees on issues such as trade facilitation and good regulatory practices, as well as a liaison mechanism for small- and medium-sized enterprises to ensure communication and coordination.

The Office of the United States Trade Representative (USTR) also issued a statement on Monday (Washington time) confirming that the initial agreement had come into force.

"We thank our Taiwan partners for helping us reach this important milestone. The entry into force of the first agreement under our 21st Century Trade Initiative represents an important step forward in strengthening the U.S.-Taiwan economic and trade relationship," U.S. Trade Representative Katherine Tai said in the statement.

USTR previously submitted a certification to Congress stating that Taiwan had taken the measures necessary to comply with its obligations under the agreement, according to the statement.

Both sides had notified each other that all procedures required for the agreement to enter into force had been completed, the statement said.

According to the USTR statement, the U.S. and Taiwan have been making progress on a second agreement under the U.S -Taiwan Initiative on 21st Century Trade. That agreement will address areas including labor, the environment and agriculture and negotiations are ongoing, according to the statement.

Meanwhile, Taiwan's trade office also noted in its statement that the initial Taiwan-U.S. 21st Century Trade Initiative agreement had received unanimous support from Taiwan and the U.S. Congress.

The two political parties in the U.S. reviewed and approved it without objection in July, giving the agreement the status of an administrative agreement in the U.S. Congress. That status made the legal basis for economic and trade exchanges between Taiwan and the U.S. more solid, the trade office said.

To ensure that both parties can implement the agreement, the U.S. Congress also approved the Taiwan-U.S. Initiative on 21st-Century Trade First Agreement Implementation Act in July 2023 following the passage of the first agreement, according to the statement.

Taiwan and the U.S. launched the Initiative on 21st-Century Trade on June 1, 2022. The first agreement under the initiative is an important "building block" toward a future free trade agreement, Taiwan's Office of Trade Negotiations said in May 2023, calling it the "most comprehensive" deal agreed between the two trading partners since 1979.

Speaking to the media on Tuesday before attending a forum with business leaders, Premier Cho Jung-tai (卓榮泰) described it as a "significant day" for Taiwan-U.S. relations. He said it reflects both sides' commitment to strengthening cooperation while deepening a broad range of ties.