Taiwan 'very likely' to secure stacking relief from U.S.: Taiwan's trade negotiator

Taipei, Dec. 1 (CNA) The United States and Taiwan are in the final stages of trade negotiations, which are "very likely" to result in the latter obtaining tariff stacking relief, Taiwan's top trade negotiator Yang Jen-ni (楊珍妮) said Monday.

"We think that Taiwan's negotiating team, led by Vice Premier Cheng Li-chiun (鄭麗君), is very likely to achieve such a goal," Yang said during a legislative committee session, referring to efforts to ensure that any adjusted tariff rate for Taiwan will not be added to the existing ones.

Yang also told lawmakers that during the negotiations, which are in the final stages, Taiwan might also obtain most favored nation (MFN) status under Section 232 of the U.S. Trade Expansion Act, as Washington has been conducting a national security investigation aimed at deciding on tariffs for imports of semiconductors and other devices.

On Aug. 7, the U.S. imposed a 20 percent tariff on Taiwan imports, revising an earlier proposal for a 32 percent levy.

"The U.S. side has praised the proactive and pragmatic approach of the Taiwan negotiating team during the talks, which are making positive progress," Yang told lawmakers on the legislative economics committee on Monday.

She denied a report in the international media that the U.S. government was seeking a commitment from Taiwan to train American workers in the semiconductor manufacturing sector and other tech industries as part of the trade deal.

"Such training has not been mentioned during our negotiations," Yang said.

Economics Minister Kung Ming-hsin (龔明鑫) said at the legislative session that contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) and other Taiwanese firms investing in the U.S. and hiring American workers have their own training programs, which are crucial to the operation of their plants there.

TSMC is investing US$65 billion to build three advanced fabs in the U.S. state of Arizona and has pledged to invest an additional US$100 billion in the state over the next few years to build three more fabs, two IC assembly plants, and a research and development center.

According to a Financial Times report late last month, a draft trade agreement between the U.S. and Taiwan indicated that the latter would invest US$400 billion in the U.S. to support the expansion of its semiconductor manufacturing capabilities.

Citing an American official, the report said the figure would include massive investments by TSMC.

At the time, Taiwan's trade negotiation office said, however, that the trade negotiations were still ongoing, and it did not confirm whether or not such a pledge had been made.

The office said that the Taiwan negotiating team was exploring possible supply chain collaborations with the U.S. under a "Taiwan model," which would allow Taiwanese enterprises to map out their own plans for investment in the U.S., setting up geographic proximity with their American clients to boost their competitive edge.

To date, Taiwan and the U.S. have completed five rounds of in-person talks on tariffs and several meetings via videoconferencing.

On Monday, Yang said the sixth round of negotiations will be held soon, and Taiwan is hoping that the talks will be concluded by the end of the year.