Negotiations between the United States and Taiwan are expected to begin next fall. Taiwan, 9e trading partner of the United States and a major producer of semi-conductors – the chips found in all electronic devices – has established itself as an essential trading partner for Washington. Inaugural discussions on a new trade agreement had already taken place at the end of June.
Antoine Bondaz, research fellow at the Foundation for Strategic Research and specialist in China and Taiwan, nevertheless wishes to put this announcement into perspective: “The United States and Taiwan have a long-standing privileged commercial relationship. The goal today is to make these relations even more fluid. »
Towards an increased formalization of commercial exchanges
Taiwan and the United States have already been linked since 1994 by a “framework” relating to trade and investment, which is not a formal agreement. It is a platform to discuss all economic topics. Taiwan also joined the World Trade Organization (WTO) in 2002, which has contributed to the growth of its bilateral and multilateral trade. “In recent years, Taiwan’s economic importance has increased dramatically. It is normal for countries to seek to multiply contacts,” adds Antoine Bondaz.
The “United States-Taiwan Initiative on 21st Century Trade” – the name of the new round of negotiations – will take place under the auspices of the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (Tecro). This agreement “will advance mutual business priorities based on shared values and foster innovation and inclusive economic growth for our workers and businesses”explained the Deputy Trade Representative of the United States, Sarah Bianchi.
The private sector already on board
Antoine Bondaz points out that “customs duties and investments” will be at the heart of the negotiations. Other topics on the agenda: the production of semiconductors, the fight against corruption, the protection of labor and the environment, the rules of digital trade and the operation of public companies.
The rapprochement between the two countries is already effective through the investments of their respective companies. Taiwanese semiconductor giant TSMC recently announced a new investment in Arizona totaling $12 billion between 2021 and 2029. A first factory, expected to be completed by 2024, is expected to create 2,000 jobs.
Another example, Microsoft will spend 10 billion dollars in Taiwan to build a data center by 2024. The project, titled Reimagine Taiwanwill create approximately 30,000 local jobs.
An announcement that reinforces Chinese tensions
“The economic approach is at the heart of the Taiwanese strategy of interaction with other countries, political rapprochements are excluded”, adds the specialist. The Chinese authorities were quick to react to the announcement of the opening of these negotiations. On Thursday morning, China’s Ministry of Commerce said it opposes “firmly” to a new trade initiative between Taiwan and the United States.
Since Nancy Pelosi’s visit in early August, tensions have steadily grown between Taiwan and China. The latter did not hesitate to launch the largest military maneuvers ever observed in the strait of the island last week.