TAIPEI – The first agreement under the US-Taiwan Initiative on 21st Century Trade came into force on December 10, marking a significant milestone in the growing economic ties between Taipei and Washington. Both governments heralded the development as a step toward bolstering their trade relationship, with hopes for broader agreements in the future.
This agreement, part of a framework launched after Taiwan’s exclusion from the US-led Indo-Pacific Economic Framework in 2022, covers areas such as anti-corruption, Customs administration, trade facilitation, and support for small and medium-sized enterprises.
“The entry into force of the first agreement under our 21st Century Trade initiative represents an important step forward in strengthening the US-Taiwan economic and trade relationship,” said US Trade Representative Katherine Tai in a statement.
Taiwan’s Office of Trade Negotiations described the agreement as evidence of the “rock-solid partnership” between the two sides. “Given the highly volatile global situation, it is of strategic significance for Taiwan to consolidate and expand its relationships with important economic and trade partners,” it said.
Toward a Broader Trade Framework
Discussions on a second agreement under the framework are ongoing, covering areas such as labor, environmental standards, and agriculture. Taiwan has also expressed interest in pursuing a free trade agreement with the US, although Washington has paused all such negotiations.
The US remains Taiwan’s most important international backer and arms supplier, despite the absence of formal diplomatic ties.
Beijing’s Objections
China has expressed strong opposition to the US-Taiwan trade talks, viewing them as a violation of its sovereignty claims over Taiwan. Beijing regularly objects to any form of official interaction between Taipei and Washington, accusing the US of undermining regional stability.
Taiwan’s government firmly rejects China’s sovereignty claims, asserting its status as a self-governing democracy.
This trade agreement signals a deepening of US-Taiwan relations at a time of heightened geopolitical tensions in the Indo-Pacific region.