Joe Biden signs into law bill approving US-Taiwan trade agreement to boost bilateral economic ties

Agreement covers streamlining customs procedures, combating corruption and helping small businesses navigate regulatory procedures in both markets

Legislative branch’s authority asserted as law requires US trade representative to brief Congress on negotiations with Taiwan

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US President Joe Biden at the White House in Washington on Monday. Photo: EPA-EFE

Published: 6:45am, 8 Aug 2023

US President Joe Biden on Monday signed into law a bill that approves the first agreement negotiated under the US-Taiwan Initiative on 21st Century Trade and commits the administration to consult Congress for future agreements under the initiative.

The agreement, signed on June 1, covers streamlining customs procedures, combating corruption and helping small businesses navigate regulatory procedures in both markets. It broadly aims to strengthen the US-Taiwan trade and economic relationship, but does not include any market-access provisions.

It is the first of several agreements expected under the 21st Century trade initiative, a framework for bilateral talks jointly launched by the two sides in June last year.

The bill, called the United States-Taiwan Initiative on 21st-Century Trade First Agreement Implementation Act, was first announced in June by leaders of the Senate Finance Committee and the House Ways and Means Committee. It passed the House the same month and the Senate in July.

Republican congressman Jason Smith of Missouri, the sponsor of the House version and chairman of the Ways and Means Committee, said last week as the bill headed to the president’s desk: “As China continues to threaten American interests, Taiwan has maintained a close trade relationship with America.”

“This legislation strengthens that relationship with this vital ally and ensures the American people have a powerful voice, through their representatives, in future trade negotiations,” Smith said.