The US and Taiwan have reached a broad consensus on their trade deal and further details would be announced after a final wrap-up meeting, the Executive Yuan’s Office of Trade Negotiations said today.
The New York Times yesterday reported that the two nations are nearing a trade deal to reduce Taiwan’s tariff rate to 15 percent and commit Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to building at least five more facilities in the US.
“The agreement, which has been under negotiation for months, is being legally scrubbed and could be announced this month,” the article said, citing three people familiar with the matter.
Photo: AFP
The reduced tariff rate is in line with those applied to Japan and South Korea, which struck trade deals last year, it said.
The timeline for TSMC’s further investment in the US remains unclear, it added.
The objective of trade negotiations with the US has always been to reduce reciprocal tariffs without stacking them and secure preferential treatment for semiconductors under a legal provision known as Section 232, the Office of Trade Negotiations said in a statement today.
After the fifth round of in-person Taiwan-US talks, Taiwan continued to discuss supply chain cooperation with the US Department of Commerce through video meetings and written exchanges, the office said.
Taiwan asked the US to create a more favorable investment environment for Taiwanese companies by offering support such as access to land, water, electricity, visas and simpler administrative procedures, it said.
Taiwan also continued to exchange documents with the Office of the US Trade Representative to confirm the details of a Taiwan-US trade agreement, and the two sides have reached a certain degree of consensus, it added.
Taiwan and the US are scheduling a final wrap-up meeting, after which they would publicly announce the details of the deal, the office said.
The government would brief the Legislative Yuan and the public on the agreement and submit it in full, along with an impact assessment, to the legislature for review, it said.
In the first phase of Taiwan-US trade talks from April to the end of July last year, both sides negotiated tariffs, trade barriers, economic security, procurement and supply chain issues, the office said in previous statements.
Talks then shifted to a second phase focused on supply chain cooperation under the “Taiwan model,” while Taiwan continued to seek reduced, non-stacked reciprocal tariffs and preferential treatment under Section 232 for semiconductors and related products, it said.
Taiwan earlier concluded trade discussions with the Office of the US Trade Representative, then continued to discuss Section 232 tariffs and TSMC’s investment plans with the US Department of Commerce, the New York Times said.
Officials in US President Donald Trump’s administration have said companies that invest in the US would not be subject to Section 232 tariffs, but it is unclear exactly how the arrangement would work, it said.
The Central Election Commission has amended election and recall regulations to require elected office candidates to provide proof that they have no Chinese citizenship, a Cabinet report said. The commission on Oct. 29 last year revised the Measures for the Permission of Family-based Residence, Long-term Residence and Settlement of People from the Mainland Area in the Taiwan Area (大陸地區人民在台灣地區依親居留長期居留或定居許可辦法), the Executive Yuan said in a report it submitted to the legislature for review. The revision requires Chinese citizens applying for permanent residency to submit notarial documents showing that they have lost their Chinese household record and have renounced — or have never
A magnitude 5.6 earthquake struck off the coast of Yilan County at 12:37pm today, with clear shaking felt across much of northern Taiwan. There were no immediate reports of damage. The epicenter of the quake was 16.9km east-southeast of Yilan County Hall offshore at a depth of 66.8km, Central Weather Administration (CWA) data showed. The maximum intensity registered at a 4 in Yilan County’s Nanao Township (南澳) on Taiwan’s seven-tier scale. Other parts of Yilan, as well as certain areas of Hualien County, Taipei, New Taipei City, Taoyuan, Hsinchu County, Taichung and Miaoli County, recorded intensities of 3. Residents of Yilan County and Taipei received
Taiwan has secured another breakthrough in fruit exports, with jujubes, dragon fruit and lychees approved for shipment to the EU, the Ministry of Agriculture said yesterday. The Animal and Plant Health Inspection Agency on Thursday received formal notification of the approval from the EU, the ministry said, adding that the decision was expected to expand Taiwanese fruit producers’ access to high-end European markets. Taiwan exported 126 tonnes of lychees last year, valued at US$1.48 million, with Japan accounting for 102 tonnes. Other export destinations included New Zealand, Hong Kong, the US and Australia, ministry data showed. Jujube exports totaled 103 tonnes, valued at
BIG SPENDERS: Foreign investors bought the most Taiwan equities since 2005, signaling confidence that an AI boom would continue to benefit chipmakers Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) market capitalization swelled to US$2 trillion for the first time following a 4.25 percent rally in its American depositary receipts (ADR) overnight, putting the world’s biggest contract chipmaker sixth on the list of the world’s biggest companies by market capitalization, just behind Amazon.com Inc. The site CompaniesMarketcap.com ranked TSMC ahead of Saudi Aramco and Meta Platforms Inc. The Taiwanese company’s ADRs on Tuesday surged to US$385.75 on the New York Stock Exchange, as strong demand for artificial intelligence (AI) applications led to chip supply constraints and boost revenue growth to record-breaking levels. Each TSMC ADR represents
RSS