Taiwan signs trade deal with U.S. to cut tariffs, open markets

Taipei, Feb. 13 (CNA) Taiwan and the United States signed a reciprocal trade agreement in Washington on Thursday, capping U.S. tariffs on Taiwanese goods at 15 percent and granting preferential market access for U.S. industrial and agricultural exports, including automobiles, beef, and pork.

Under the U.S.-Taiwan Agreement on Reciprocal Trade, the U.S. tariff rate on Taiwanese imports will be maintained at 15 percent, while Taiwanese semiconductors and related products will be granted the most favorable treatment under Section 232 of the Trade Expansion Act, according to Taiwan's Cabinet.

An additional 2,072 Taiwanese items will also be exempt from reciprocal tariffs and will be subject only to the Most-Favored-Nation (MFN) tariff rate when imported into the U.S., the Cabinet said in a statement.

In exchange, Taiwan will eliminate or reduce 99 percent of its tariff barriers on U.S. industrial and agricultural imports, according to the Office of the United States Trade Representative.

The trade pact, which builds on agreements reached in mid-January, was signed by Taiwan's representative to the U.S., Alexander Yui (俞大㵢), and Ingrid Larson, managing director of the American Institute in Taiwan's (AIT) Washington Office.