This past week, representatives of the United States and Taiwan met for the first time on the newly agreed-upon trade framework meant to strengthen ties as a counter to China’s influence in the Indo-Pacific region.
The U.S.-Taiwan Initiative on 21st Century Trade, the framework was announced by the Biden administration at the beginning of June.
Trade talks at the inaugural June 27 meeting with Taiwan in Washington D.C. were led by Deputy U.S. Trade Representative Sarah Bianchi, who met with Taiwan’s top trade negotiator. Discussions covered many of the same areas as the IPEF, including digital trade, expanding agriculture trade, aligning technological standards, and responding to non-market economies in the region, like China.
The negotiations are expected to take two different tracks with the U.S. Trade Representative leading the way on trade issues and the U.S. Department of Commerce heading discussions on technology and investment, including securing semiconductor supply chains. The global shortage of semiconductors has shed increased light on the strategic importance of Taiwan as it is home to major global microchip manufacturers
Taiwan is the 11th largest importer of U.S. goods. In 2021, the United States imported $77.13 billion in goods from Taiwan and exported $36.94 billion in goods to Taiwan. Top export categories included computer and electronic products, non-electrical machinery, oil and gas, and chemicals.
The United States is Taiwan’s second largest trading partner and a key choice for Taiwanese investors.
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