Taiwan and the US have reached six key objectives in the trade negotiations, including securing substantial benefits for Taiwan’s industries and economy, leveling the playing field with major competitors such as Japan, South Korea and Europe, and addressing the disadvantage of high tariffs due to the absence of a free-trade agreement (FTA) between Taiwan and the US, President William Lai (賴清德) said yesterday.
Lai made the remarks at a news conference after Taiwan and the US signed the Agreement on Reciprocal Trade in Washington on Thursday.
Lai highlighted the six key outcomes of the negotiations.
Photo: Lo Pei-de, Taipei Times
The first was securing reciprocal tariffs for Taiwan’s exports to the US, along with the most favorable treatment under Section 232 tariffs, he said.
Taiwan’s reciprocal tariff rate would be reduced to 15 percent, without stacking them on most-favored nation (MFN) rates, he said, adding that 2,072 Taiwanese products — 261 agricultural items and 1,811 industrial goods — would be exempt from these tariffs.
As a result, the average tariff on Taiwanese exports to the US would fall from 35.78 percent (32 percent plus the MFN rate) to 12.33 percent, significantly enhancing Taiwan’s competitiveness, Lai said.
Regarding Section 232 tariffs, Lai said Taiwan has secured most favorable treatment, including tax exemptions for semiconductors and semiconductor derivatives up to a certain quota, with most favorable treatment applied beyond that quota as well.
Other products, including automotive parts, furniture and aerospace components, also received most favorable treatment, he added.
The second key outcome was Taiwan’s adjustment to the US granting preferential tariffs, he said.
In response to concerns about the large trade surplus with the US, Taiwan agreed to lower tariffs on US imports, he said, adding that Taiwan maintained its commitment to food security and industrial resilience, successfully preserving tariff rates on 93 products and securing partial reductions on others.
Lai said the third achievement was in adjusting non-tariff trade measures.
Taiwan insisted on protecting public health while aligning with international standards, he said.
The country will continue to require the labeling of the country of origin for beef and pork products in dining establishments, and the border and post-market inspection mechanisms would remain unchanged, he said.
The fourth key achievement was accelerating the alignment of Taiwan’s trade and economic systems with international standards, based on the “Taiwan-US 21st Century Trade Initiative,” said Lai.
This includes intellectual property, labor standards, environmental regulations, trade facilitation, regulatory transparency and the digital trade environment. The goal is to mesh with global norms, making business operations more convenient, fair and transparent, he said.
Lai said Taiwan and the US have reached “a strong consensus on economic security” that would strengthen cooperation in areas such as tightening export controls on critical technologies, improving investment reviews and preventing country-of-origin laundering.
“This collaboration will help establish a reliable and resilient supply chain between Taiwan and the US, independent of China,” Lai said.
The sixth major achievement was the establishment of the Taiwan-US Investment Memorandum of Understanding, which creates a framework for bilateral investment between Taiwan and the US, he said.
“This will facilitate supply chain collaboration based on the ‘Taiwan model’,” Lai said, adding the US government would support Taiwanese companies investing in the US, helping integrate Taiwan’s semiconductor, information and communications technology, and electronics manufacturing sectors into the US economy, and in return, the US would encourage US companies to invest in Taiwan and introduce advanced technologies.
“This bilateral investment and procurement strategy will not only help balance trade between Taiwan and the US, but also strengthen the economic partnership, driving mutual prosperity and regional stability,” said Lai.
Lai also announced the establishment of a national economic “steering group,” adding that he would serve as the convener of the new group under the Presidential Office.
The group would be tasked with coordinating with the Executive Yuan’s Economic Development Commission — led by Premier Cho Jung-tai (卓榮泰) — to address structural economic challenges, he said.
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