Taiwan’s trade negotiation team, led by Vice Premier Cheng Li-chiun (鄭麗君) and chief trade negotiator Minister Without Portfolio Yang Jen-ni (楊珍妮), has departed for the US for a new round of in-person trade talks that officials say are in the final stages, the Cabinet said yesterday.
The delegation left Taiwan late on Wednesday after coordinating with its US counterparts, the Cabinet’s Taiwan-US trade working group said.
Following the talks, the two sides are expected to announce the substance of any consensus reached, the group said.
Photo: CNA
A formal trade agreement would be signed at a later date, after which the full text would be submitted to Taiwan’s legislature for review, in accordance with legal procedures, it added.
The meetings are to focus on four main objectives, including further lowering tariffs on Taiwanese goods without stacking them on existing most-favored-nation rates and securing “most favorable” treatment under Section 232 of the US Trade Expansion Act for semiconductors, semiconductor-derived products and other items, the working group said.
Other goals include expanding the “Taiwan model” within US supply chains and seeking a more favorable investment environment for Taiwanese firms, while promoting bilateral trade balance and building a strategic partnership in the global artificial intelligence (AI) supply chain, the negotiation team said.
The meetings, the sixth round of in-person trade negotiations between Taiwan and the US, are to be held amid reports that the two sides are close to reaching a trade agreement.
The New York Times reported earlier this week that US tariffs on Taiwanese imports could be reduced to 15 percent from 20 percent, and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) plans to make additional investments in Arizona, including the construction of at least five new semiconductor plants.
TSMC has declined to comment on whether it would invest more in the US on top of the US$165 billion that it has already pledged.
Taiwan’s chips are not subject to the US tariffs.
Two people familiar with the matter said an announcement on the tariffs deal could come by the end of the month.
The Office of Trade Negotiations on Tuesday said the two sides had already reached broad consensus on relevant issues and were discussing the timing of a wrap-up meeting, after which the main elements of the agreement would be made public.
The new round of negotiations also follows a White House announcement on Wednesday regarding semiconductor tariffs.
Washington imposed a 25 percent tariff on certain AI chips, such as the Nvidia H200, under a new national security order released by the White House.
Addressing that new order, Taiwan said that it has previously held multiple discussions with the US and reached a consensus on preferential tariff treatment for semiconductors and related products.
“After confirming this with the US side during the current consultations, our side will provide a public explanation,” it added, without elaborating.
Additional reporting by Reuters
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