US-Taiwan

The discussion around a possible bilateral free trade agreement between Taiwan and the US has been drawn out for years, with Taiwan requesting and the US acting lukewarm toward the idea.

At stake in any kind of bilateral trade or investment deal here is, first and foremost, the political standing of Taiwan vis-a-vis China and the rest of world. An FTA with Washington would amount to US recognition of Taiwan’s sovereignty and independence from China. This goes against Chinese policy and could trigger military action. The US adheres to Beijing’s "one China" policy while it maintains unofficial relations with Taiwan.

The economics of a potential deal are another story. Taiwan is the US’ eighth largest trading partner, and sixth largest importer of US agricultural goods, and wants its own terms of access to US markets. But the US insists that the actual benefits of an FTA for Taiwan would not be important, even though Washington constantly pressures Taiwan to improve its policies on electronic commerce, government procurement, intellectual property, food safety and US beef for the benefit of American corporations.

In the meantime, the two governments, through their respective proxy agencies, signed a sort of Trade and Investment Framework Agreement in 1994 and conduct discussions through the TIFA Council.

last update: May 2012
Photo: munch999/CC BY-NC-SA 2.0


South China Morning Post | 23-Jun-2023
The US House of Representatives voted to approve the first agreement signed under the US-Taiwan Initiative on 21st Century Trade and to require congressional consultation for future negotiations.
BBC | 2-Jun-2023
It is the first agreement under a framework for talks between Washington and Taipei called the US-Taiwan Initiative on 21st Century Trade.
Le Figaro | 2-Jun-2023
Les États-Unis et Taïwan vont signer un accord commercial «historique», a indiqué Taïpei, une annonce susceptible d’aggraver les tensions déjà vives entre Pékin et Washington à propos de l’île autonome.
Taiwan Info | 23-May-2023
Taiwan et les Etats-Unis ont conclu une première série de négociations dans le cadre de leur Initiative sur le commerce du XXIe siècle.
The Washington Post | 19-May-2023
The Taiwan initiative isn’t a formal free-trade agreement and doesn’t address thorny issues such as tariffs, but it’s part of a broader drive to deepen trade ties amid heightened tensions with Beijing
RTI | 4-May-2023
The progress to finalize the U.S.-Taiwan 21st Century Trade Initiative is on schedule though without a definitive signing date.