The US and Taiwan have agreed on the first phase of their "21st Century" trade initiative, which focuses on customs and border procedures, regulatory practices, and small businesses, according to the US Trade Representative's office.
Once the initial agreement is signed, negotiations will begin on other, more complex trade areas, including agriculture, digital trade, labor, environmental standards, state-owned enterprises, and non-market policies and practices.
US Trade Representative Katherine Tai called the deal "historically significant" and said it strengthened US-Taiwan relations. Taiwan aims to finalize negotiations on all remaining issues by the end of the year. The agreement is not expected to change goods tariffs but could enhance economic ties between the two countries and boost Taiwan's ability to resist economic pressure from China.
The bilateral talks began last August after the Biden administration excluded Taiwan from its larger pan-Asian trade initiative, the Indo-Pacific Economic Framework.
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