US-Taiwan trade initiative signals a shift in approach, analysts say

Economic cooperation between Washington and Taipei seen as a more institutionalised way to strengthen ties

It could also bring the island closer to the US Indo-Pacific strategy by reducing its dependence on the mainland economy

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Taipei and Washington have launched a new initiative to promote a closer trade relationship “based on shared values”. Photo: Bloomberg

Published: 11:19pm, 1 Jun 2022Updated: 5:02pm, 2 Jun 2022

Taipei and Washington have moved closer through informal, unofficial interactions since 1979, when the US cut diplomatic ties with the self-ruled island that Beijing claims as its own.

But the new US-Taiwan Initiative on 21st-Century Trade signals a more institutionalised approach to strengthen ties under Joe Biden’s administration, analysts say. And it could bring the island closer to the US Indo-Pacific strategy by reducing its economic reliance on mainland China.

The initiative launched on Tuesday aims to promote a tighter trade relationship “based on shared values” through agreements in areas including regulatory practices, anti-corruption standards, digital trade and the environmental impact of trade.

“The two sides seek to develop provisions to create a level playing field for workers and businesses when competing against these entities in the international marketplace,” the US Trade Representative said in a notice.

Beijing on Thursday said it had long opposed moves by any country to sign official trade deals that could imply Taiwan was a sovereign nation, and urged the US to follow its one-China principle.

“The US insistence on playing the Taiwan card will only endanger China-US relations,” foreign ministry spokesman Zhao Lijian said.

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