US signs trade deal with Taiwan to reduce tariff barriers

Taiwanese exports to the United States will be taxed 15 per cent, the US government’s ‘most favoured nation’ rate, the USTR office said.

The rate is equal to that levied on other US trading partners in the Asia-Pacific region.

USTR Jamieson Greer attended the signing of the reciprocal agreement, which occurred under the auspices of the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States. Taiwan’s Vice Premier Lichiun Cheng and its Government Minister Jen-ni Yang also attended the signing.

Under the deal, Taiwan will make investments of $250 billion in US industries like computer chips, artificial intelligence applications and energy. Taiwan will provide up to an additional $250 billion in credit guarantees to help smaller businesses invest in the United States.

“The Agreement on Reciprocal Trade with Taiwan will eliminate tariff and non-tariff barriers facing US exports to Taiwan, furthering opportunities for American farmers, ranchers, fishermen, workers, small businesses and manufacturers. This Agreement also builds on our longstanding economic and trade relationship with Taiwan and will significantly enhance the resilience of our supply chains, particularly in high-technology sectors,” Greer said in a USTR release.

The United States said the deal would help create several ‘world-class’ industrial parks in America to help build up domestic manufacturing of advanced technologies.

Fibre2Fashion News Desk (DS)