US-Taiwan trade talks set to focus on technology supply chains amid global semiconductor shortage
- United States and Taiwan are due to convene a meeting of the Taiwan-US Trade and Investment Framework Agreement Council on Wednesday
- Washington is expected to discuss ways to strengthen technology supply chains, especially concerning semiconductors, between two economies
Trade talks on Wednesday between Taiwan and its second-largest export market the United States are expected to lay the foundations for a deal on hi-tech hardware, a cornerstone of Taiwanese exports, rather than focusing on greater trade liberalisation.
The Taiwan-US Trade and Investment Framework Agreement talks are likely to be positive for US interests centered around technology supply chains, while mildly disappointing for Taiwan which is looking for greater market access, according to analysts.
Talks on the trade and investment framework, which is 27 years old, will take place against the backdrop of a global semiconductor shortage that has challenged signature American consumer electronics firms.
“Taiwan is hoping [the talks] will lead to a bilateral trade agreement or a free-trade agreement,” said Darson Chiu, deputy macroeconomic forecasting director with the Taiwan Institute of Economic Research. “However, an FTA is not on Biden’s agenda for the time being.”
Decades of political rivalry with the much larger mainland China, which views Taiwan as a renegade province, has snarled Taipei’s efforts over the past decade to sign trade deals with importers of its core products, with many foreign governments seeking to avoid offending Beijing.