Taiwan-U.S. tariff talks yield lot of 'advancements': U.S. official

Washington, Nov. 13 (CNA) Negotiations between the United States and Taiwan have made a lot of "advancements," a senior U.S. administration official said Thursday.

In a background briefing in Washington, the official said the administration of U.S. President Donald Trump has recently struck trade framework agreements with Argentina, Ecuador, El Salvador and Guatemala.

The U.S. has also made joint announcements with Vietnam and Indonesia and has seen positive progress in its talks with India, according to the official.

The official said there are a handful of agreements that may be announced by the end of the year, but any deal will be up to President Trump ultimately.

"We have made a lot of advancements with Taiwan," the official said, without elaborating.

On Thursday, Taiwan Cabinet spokesperson Michelle Lee (李慧芝) told reporters that the talks between Taiwan and the U.S. were pursuing a "Taiwan model," after it was reported Wednesday that Washington was seeking an investment pledge of between US$350 billion and US$550 billion from Taipei.

According to the Politico news report, the Trump administration is currently "haggling" over the final amount in the Taiwan deal, seeking an investment pledge "midway between South Korea's US$350 billion and Japan's US$550 billion."

Lee said, however, that Taipei and Washington have been exploring prospective supply chain collaborations under a "Taiwan model," which cannot be compared directly to the agreements with South Korea and Japan.

"The Taiwan model is driven by companies' international branching strategies, prompting them to plan investments in the U.S. to be closer to their clients and boost competitiveness, while the government provides financial and credit guarantee support," Lee said.

She confirmed that Taipei is seeking a reduction of the current 20 percent tariff imposed by the U.S. and is trying to ensure that the rate will not be added to the existing most-favored-nation tariffs.

Taiwan is also working to secure most-favored-nation treatment under Section 232 of the U.S. Trade Expansion Act, as Washington conducts a national security investigation aimed at deciding on tariffs for semiconductor imports, Lee said.

As of the end of September, Taiwan's negotiating team had completed the fifth round of in-person talks with its American counterpart, which was followed by a virtual meeting, Lee said, without giving any details.

The bilateral discussions continue, and once a consensus is reached, the two sides will enter the final round of negotiations to strike a deal, Lee said.