US, Taiwan talks raise hopes for free-trade pact, analysts say

Four-day meeting being held in Taipei under new initiative, as Washington deepens engagement with the island

There are ‘bigger chances’ agreement can be reached in four areas of focus for Taiwan, according to observer

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Terry McCartin, assistant US trade representative for China affairs, is leading a delegation of more than 20 officials at the talks in Taipei. Photo: CNA

Published: 6:00am, 17 Jan 2023

Talks under way in Taipei between Taiwanese and US officials could pave the way for the two sides to sign a free-trade agreement, according to analysts.

The four-day meeting runs until Tuesday and is being held under the new US-Taiwan Initiative on 21st-Century Trade – launched in June – as Washington deepens its engagement with the self-ruled island to counter Beijing.

Terry McCartin, assistant US trade representative for China affairs, is leading a delegation of more than 20 trade officials at the talks with his Taiwanese counterpart, Yang Jen-ni, deputy trade representative of the island’s Office of Trade Negotiations, and her team.

Taiwan’s top trade negotiator says the focus will be on trade facilitation, SMEs, regulatory practices and anti-corruption measures. Photo: CNA

“Among the 11 areas of negotiation, we will continue to focus on trade facilitation, the promotion of small and medium enterprises, good regulatory practices, and anti-corruption measures,” Taiwan’s top trade negotiator John Deng told reporters at the start of the talks on Saturday.

He said the island was hoping for some positive results in those four focus points.

Other areas being discussed are agriculture, standards, digital trade, labour, the environment, state-owned enterprises, and non-market policies and practices. The initiative does not cover tariff reductions.

“Our goal is to reach some high-standard and economically meaningful agreements before the US is to host the Asia-Pacific Economic Cooperation summit in [November] 2023,” he said, apparently referring to a bilateral or free-trade pact with the US.

The potential deal has angered Beijing, which sees Taiwan as part of its territory and opposes any move to sign official trade pacts with the island. It has urged the US – which does not have formal diplomatic relations with Taipei – to follow the one-China principle and accused Washington of “playing the Taiwan card”, which it said would endanger China-US ties.