Section 301 probe into Taiwan unlikely to affect reciprocal trade deal: Cabinet

Taipei, March 12 (CNA) Cabinet spokesperson Michelle Lee (李慧芝) on Thursday expressed confidence that the benefits Taiwan secured under a recent Agreement on Reciprocal Trade (ART) with the United States will not be affected by the U.S. decision to launch a probe into 16 economies, including Taiwan, under Section 301 of the U.S. Trade Act.

Lee said she is optimistic that the new probe would not negate the favorable terms Taiwan secured under the ART, which, among other terms, lowered U.S. tariffs from 20 percent to 15 percent without stacking them on Taiwan exports that already have most favored nation (MFN) status. 

The investigation is also unlikely to affect ART terms such as most favorable treatment for Taiwanese semiconductor exports, which were obtained in exchange for greater market access in Taiwan for American cars, pork and beef, among other concessions, she said.

"Taiwan and the United States have reached a consensus on many issues covered by the Section 301 investigations," Lee said in a statement. "Our side believes that the results of the investigations will largely reflect the outcomes achieved during negotiations over the ART, and that Taiwan's comparative advantages and most favorable treatment will not be compromised."

The Taiwanese government had learned of the Section 301 investigations before they were announced Wednesday, Lee said, adding that the government will continue to maintain close contact with the Office of the U.S. Trade Representative regarding the investigations.

On Wednesday, the U.S. launched a series of new investigations into the manufacturing policies and practices of 16 trading partners, including Taiwan, China, Japan and the European Union, citing concerns about excess capacity and overproduction.

• U.S. launches Section 301 probe into 16 trading partners including Taiwan

The decision came less than three weeks after the U.S. Supreme Court struck down sweeping global tariffs imposed by President Donald Trump, and it is widely seen as an attempt by the Trump administration to rebuild tariff pressure on trading partners.

Under the Section 301 provision, economies found to have adopted "unreasonable or discriminatory" measures against the U.S. that "burden or restrict" its commerce could be subject to heavy tariffs. During his first term, Trump invoked the provision as the basis for imposing a 25 percent tariff on many Chinese imports, on the grounds of forced technology transfers and intellectual property theft.

As of Thursday, Taiwan had not received any formal information from the U.S. government about the legal status of the ART in the wake of the Supreme Court's ruling on Feb. 20.