A senior US trade official said on Thursday that Washington remained “anxious” over trade problems with Taiwan, particularly those concerning beef.
“There have been a number of very serious frustrations that I think we have had with Taiwan with respect to compliance with rules, particularly on the agricultural side as it relates to our trade in beef,” deputy US Trade Representative Demetrios Marantis said.
“We are anxious and in contact with the government of Taiwan as we work to resolve these issues and work towards hopefully having a TIFA [Trade and Investment Framework Agreement] at some point,” he added.
While Marantis did not specifically link the beef issue with a TIFA, he appeared to imply that the beef problem would have to be solved before there could be progress on an agreement.
Marantis, the keynote speaker at a Washington meeting organized by the left-leaning Third Way think tank on trade with China, had been asked if there was still any barrier to the resumption of a TIFA with Taiwan.
“With respect to the TIFA, we have a huge trade and investment relationship with Taiwan that’s very important and it’s very important that we continue to work through initiatives on how to continue to bolster that trade and investment relationship,” he said.
Marantis also said that the US viewed the signing of the Economic Cooperation Framework Agreement between Taipei and Beijing as a “positive development in cross-strait relations.”
However, he stressed that the US had “serious” concerns about Beijing’s restrictive trade policies.
“We must contend with the reality that China’s implementation of its WTO commitments is incomplete. It’s been nearly a decade since China joined the WTO and it is high time for China to follow through on past commitments, as well as provide new market access in key sectors,” he said.
“Failing to do so imperils not just our bilateral ties, but also the success of multilateral trade talks,” he added.
Marantis said China still had in place “trade-distorting measures” including export quotas, selective use of value-added tax rebates and subsidies across a wide range of favored sectors.
He sharply criticized Beijing for failing to do more to reach an “ambitious and balanced conclusion of the Doha Round.”
“We are disappointed, quite frankly, in China’s contribution to date. China has come up short and continues to leave the US and its global trading partners waiting for more serious engagement and a more serious contribution to the WTO negotiations,” Marantis said.
“The role in the global economy that China has aspired to and now plays comes with commensurate responsibilities,” he added.
US Representative Adam Smith, a Democrat from Washington state and a major force on Capitol Hill in national security and foreign policy issues, said there were “problems and challenges” but that China could be a future partner for global stability.
“The conflict with Taiwan will always hang out there as a potential flashpoint. And China is becoming increasingly more involved in global development. It’s going into Africa, Latin America and other parts of Southeast Asia to attempt to assert influence — not always in the most positive way possible,” he added.
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