Office of the United States Trade Representative
12/09/2024 | Press release | Distributed by Public on 12/09/2024 17:29
USTR Announces Entry into Force of First Agreement under U.S.-Taiwan Initiative on 21st Century Trade
WASHINGTON - United States Trade Representative Katherine Tai today announced that the first agreement under the U.S.-Taiwan Initiative on 21st Century Trade will enter into force tomorrow. This agreement was signed on June 1, 2023 by representatives of the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (TECRO) and includes commitments on anticorruption, good regulatory practices, services domestic regulation, customs administration and trade facilitation, and small and medium-sized enterprises.
"We thank our Taiwan partners for helping us reach this important milestone. The entry into force of the first agreement under our 21st Century Trade Initiative represents an important step forward in strengthening the U.S.-Taiwan economic and trade relationship," said Ambassador Tai.
In accordance with the provisions of the United States-Taiwan Initiative on 21st Century Trade Implementation Act, and pursuant to authority delegated by the President, USTR previously submitted a certification to Congress stating that Taiwan has taken the measures necessary to comply with its obligations under the agreement. In accordance with the provisions of the agreement, the parties to the agreement have now notified each other that the internal procedures required for entry into force have been completed.
Since the signing of the first agreement under the U.S.-Taiwan Initiative on 21st Century Trade in June 2023, the United States and Taiwan, under the auspices of AIT and TECRO, have been making progress on a second agreement addressing additional trade areas, including labor, environment, and agriculture. Those negotiations are ongoing.
Background
The first agreement under the U.S.-Taiwan Initiative on 21stCentury Trade can be accessed on USTR's website.
Additional details on the chapters included in the agreement:
Anticorruption
The chapter on anticorruption commits the sides to comprehensive anticorruption measures that will prevent and combat bribery and other forms of corruption. Consistent with recently negotiated agreements, this chapter includes provisions addressing money laundering, denial of entry for foreign public officials, the recovery of proceeds of corruption, and enhanced protections for corruption whistleblowers.
The chapter also mandates procedures for possible removal of public officials who are charged or convicted of corruption.
Good Regulatory Practices
The chapter on good regulatory practices treats transparency and due process as core elements of good governance. It also creates improved transparency tools and mechanisms that will help small and medium-sized enterprises better understand regulatory procedures in both the U.S. and Taiwan markets. This includes public consultations on draft regulatory measures, which can contribute to better and more informed regulations.
The chapter also establishes a Good Regulatory Practices Committee to monitor implementation of the obligations in this chapter, improve information sharing, and facilitate enhanced regulatory cooperation.
Services Domestic Regulation
The chapter ensures service suppliers are treated fairly when they apply for permission to operate, and that there is a smooth flow of information between the applicant for a license and the regulator. Regulators are required to be independent of the industry they oversee, and must inform applicants of the requirements to obtain a license, provide applicants a fair opportunity to demonstrate that they meet the requirements, and make a decision on whether to issue a license in a reasonable period of time.
The chapter also prohibits licensing rules that discriminate on the basis of gender.
Customs Administration and Trade Facilitation
The chapter on customs administration and trade facilitation will streamline border procedures and reduce red tape, making it easier, faster, and cheaper for American businesses to bring their products to Taiwan and Taiwanese customers. Customs forms will be able to be submitted electronically and will allow border agencies to accept electronic payment of duties, taxes, and fees. Reducing wait times for idling vessels and trucks will also lower greenhouse gas emissions and reduce spoilage, especially of perishable goods.
Small- and Medium-Sized Enterprises (SMEs)
The chapter on SMEs will encourage SME trade and investment opportunities between the United States and Taiwan, including through training programs, trade education, trade finance, trade missions, and improving SME access to capital and credit. The sides would promote online, publicly available resources for SMEs to learn more about how to conduct business in both markets.
"We thank our Taiwan partners for helping us reach this important milestone. The entry into force of the first agreement under our 21st Century Trade Initiative represents an important step forward in strengthening the U.S.-Taiwan economic and trade relationship," said Ambassador Tai.
In accordance with the provisions of the United States-Taiwan Initiative on 21st Century Trade Implementation Act, and pursuant to authority delegated by the President, USTR previously submitted a certification to Congress stating that Taiwan has taken the measures necessary to comply with its obligations under the agreement. In accordance with the provisions of the agreement, the parties to the agreement have now notified each other that the internal procedures required for entry into force have been completed.
Since the signing of the first agreement under the U.S.-Taiwan Initiative on 21st Century Trade in June 2023, the United States and Taiwan, under the auspices of AIT and TECRO, have been making progress on a second agreement addressing additional trade areas, including labor, environment, and agriculture. Those negotiations are ongoing.
Background
The first agreement under the U.S.-Taiwan Initiative on 21stCentury Trade can be accessed on USTR's website.
Additional details on the chapters included in the agreement:
Anticorruption
The chapter on anticorruption commits the sides to comprehensive anticorruption measures that will prevent and combat bribery and other forms of corruption. Consistent with recently negotiated agreements, this chapter includes provisions addressing money laundering, denial of entry for foreign public officials, the recovery of proceeds of corruption, and enhanced protections for corruption whistleblowers.
The chapter also mandates procedures for possible removal of public officials who are charged or convicted of corruption.
Good Regulatory Practices
The chapter on good regulatory practices treats transparency and due process as core elements of good governance. It also creates improved transparency tools and mechanisms that will help small and medium-sized enterprises better understand regulatory procedures in both the U.S. and Taiwan markets. This includes public consultations on draft regulatory measures, which can contribute to better and more informed regulations.
The chapter also establishes a Good Regulatory Practices Committee to monitor implementation of the obligations in this chapter, improve information sharing, and facilitate enhanced regulatory cooperation.
Services Domestic Regulation
The chapter ensures service suppliers are treated fairly when they apply for permission to operate, and that there is a smooth flow of information between the applicant for a license and the regulator. Regulators are required to be independent of the industry they oversee, and must inform applicants of the requirements to obtain a license, provide applicants a fair opportunity to demonstrate that they meet the requirements, and make a decision on whether to issue a license in a reasonable period of time.
The chapter also prohibits licensing rules that discriminate on the basis of gender.
Customs Administration and Trade Facilitation
The chapter on customs administration and trade facilitation will streamline border procedures and reduce red tape, making it easier, faster, and cheaper for American businesses to bring their products to Taiwan and Taiwanese customers. Customs forms will be able to be submitted electronically and will allow border agencies to accept electronic payment of duties, taxes, and fees. Reducing wait times for idling vessels and trucks will also lower greenhouse gas emissions and reduce spoilage, especially of perishable goods.
Small- and Medium-Sized Enterprises (SMEs)
The chapter on SMEs will encourage SME trade and investment opportunities between the United States and Taiwan, including through training programs, trade education, trade finance, trade missions, and improving SME access to capital and credit. The sides would promote online, publicly available resources for SMEs to learn more about how to conduct business in both markets.
The chapter encourages that the SME Dialogues include SME owned by diverse, underserved, and underrepresented groups.
Resource:
U.S.-Taiwan Initiative on 21stCentury Trade First Agreement Text
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