Last week, Taiwan and the US announced the launch of the “Taiwan-US Initiative on 21st Century Trade” to pave the way for a bilateral trade agreement, while also engaging with the EU on enhancing semiconductor supply chain resilience via a rare ministerial-level discussion. The latest developments are a welcome shot in the arm after Taiwan was left out of the US-led Indo-Pacific Economic Framework (IPEF) when it was launched by US President Joe Biden on his visit to Japan on May 23.
The government touted last week’s trade talks as major trade breakthroughs for Taiwan in its economic and trade relations with the US and the EU. In general, industry representatives and trade groups welcome the new initiative between Taiwan and the US, hoping it will lead to a bilateral trade agreement between the two sides, enabling firms to enjoy lower tariffs and improved competitiveness. Eventually, they expect it to become a stepping stone for Taiwan to enhance its trade and economic relations with other economies and nations.
Nonetheless, the discussions have prompted strong objections from Beijing as China continues its efforts to marginalize Taiwan. They have also drawn criticism from opposition lawmakers and critics in Taiwan that the initiative — which covers trade facilitation, regulatory practices, agriculture, anti-corruption measures, small and medium-sized enterprises, digital trade, workers’ rights, the environment and state-owned enterprises — lacks specific content and excludes the tariff reductions and enhanced market access that traditional free-trade agreements would offer.
However, high-level trade talks — like the one between Minister Without Portfolio John Deng (鄧振中) and Deputy US Trade Representative Sarah Bianchi on Wednesday and between Minister of Economic Affairs Wang Mei-hua (王美花) and EU Director-General for Trade Sabine Weyand on Thursday — help Taiwan advance its goals of cutting as many trade deals as possible with major economies. Such talks also help strengthen Taiwan’s position in rebuilding resilience in global supply chains, especially on the semiconductor front. Moreover, the Taiwan-US initiative largely parallels the IPEF, even though Taiwan was excluded from the first round of IPEF membership.
What is more important is how the new trade talks could proceed and create opportunities for Taiwanese businesses to expand their global reach and benefit the nation’s economy. The substantial content of the new initiative is not being unveiled until the two sides hold their first face-to-face talks in Washington later this month, while the progress in deepening relations with the EU on trade, investment and other strategic issues also depends on further discussions by new working groups. At the very least, last week’s high-level trade discussions have established mechanisms for negotiations to nurture closer relations with the US and the EU.
The government has long maintained a building-block approach to signing free-trade agreements with other major economies, with issues of concern being discussed first, putting aside issues that cannot be dealt with for the time being and hoping to address those thorny issues, including tariffs, when the time is ripe. A trade agreement is always reached through give-and-take by all parties, with gains in some areas and losses in others being part of the bargaining process.
Only when there is constant progress at the working group level can Taiwan and its major trading partners, such as the US and the EU, perpetuate the negotiation mechanisms and thus pave the way to forging bilateral trade agreements. In this respect, the question is not only whether Taiwan can properly address issues of concern to its trading partners over the course of the year, but also whether the nation can achieve maximum gains in negotiations based on the agreements reached in last week’s talks.
As strategic tensions escalate across the vast Indo-Pacific region, Taiwan has emerged as more than a potential flashpoint. It is the fulcrum upon which the credibility of the evolving American-led strategy of integrated deterrence now rests. How the US and regional powers like Japan respond to Taiwan’s defense, and how credible the deterrent against Chinese aggression proves to be, will profoundly shape the Indo-Pacific security architecture for years to come. A successful defense of Taiwan through strengthened deterrence in the Indo-Pacific would enhance the credibility of the US-led alliance system and underpin America’s global preeminence, while a failure of integrated deterrence would
It is being said every second day: The ongoing recall campaign in Taiwan — where citizens are trying to collect enough signatures to trigger re-elections for a number of Chinese Nationalist Party (KMT) legislators — is orchestrated by the Democratic Progressive Party (DPP), or even President William Lai (賴清德) himself. The KMT makes the claim, and foreign media and analysts repeat it. However, they never show any proof — because there is not any. It is alarming how easily academics, journalists and experts toss around claims that amount to accusing a democratic government of conspiracy — without a shred of evidence. These
Taiwan is confronting escalating threats from its behemoth neighbor. Last month, the Chinese People’s Liberation Army conducted live-fire drills in the East China Sea, practicing blockades and precision strikes on simulated targets, while its escalating cyberattacks targeting government, financial and telecommunication systems threaten to disrupt Taiwan’s digital infrastructure. The mounting geopolitical pressure underscores Taiwan’s need to strengthen its defense capabilities to deter possible aggression and improve civilian preparedness. The consequences of inadequate preparation have been made all too clear by the tragic situation in Ukraine. Taiwan can build on its successful COVID-19 response, marked by effective planning and execution, to enhance
Since taking office, US President Donald Trump has upheld the core goals of “making America safer, stronger, and more prosperous,” fully implementing an “America first” policy. Countries have responded cautiously to the fresh style and rapid pace of the new Trump administration. The US has prioritized reindustrialization, building a stronger US role in the Indo-Pacific, and countering China’s malicious influence. This has created a high degree of alignment between the interests of Taiwan and the US in security, economics, technology and other spheres. Taiwan must properly understand the Trump administration’s intentions and coordinate, connect and correspond with US strategic goals.
RSS