Officials of Taiwan and the U.S. completed tariff negotiations Jan. 15 in Washington D.C., with the U.S. agreeing to lower its tariff rate on Taiwanese goods from 20 percent to 15 percent without stacking them on existing most-favored-nation rates.
According to the Executive Yuan, the Taiwan delegation was led by Vice Premier Cheng Li-chiun and Office of Trade Negotiations Minister Yang Jen-ni, while the U.S. side included Secretary of Commerce Howard Lutnick and Trade Representative Jamieson Greer.
A cabinet task force said the U.S. also granted semiconductors and related products from Taiwan most favorable treatment under Section 232 of the Trade Expansion Act. This is important as Taiwan enjoys the sixth largest trade surplus against the U.S., with semiconductors, information communication technology products, electronic components and parts accounting for 90 percent of the amount.
The reciprocal rate is the same as those on goods from major U.S trade partners such as Japan, South Korea and the European Union, the task force said, adding that the development bodes well for sectors such as auto components and parts, and machine and hand tools.
During the negotiations at the U.S. Department of Commerce, the Taipei Economic and Cultural Representative Office and the American Institute in Taiwan concluded a memorandum of understanding on bilateral trade and investment.
Under this pact, Taiwan’s semiconductor and technology firms will make new, direct investments in the U.S. totaling at least US$250 billion to build and expand advanced semiconductor, energy and artificial intelligence production.
At the same time, Taiwan will provide credit guarantees of at least US$250 billion to facilitate additional investment by Taiwanese firms to establish and expand a full semiconductor supply chain and ecosystem in the U.S.
To create a favorable investment environment for Taiwanese firms, the U.S. also agreed to provide necessary resources such as infrastructure, land, tax credits, utilities and visa applications, the EY said, adding that it will forward the finalized version of the agreement to the Legislative Yuan for deliberation. (SFC-E)
Write to Taiwan Today at ttonline@mofa.gov.tw
According to the Executive Yuan, the Taiwan delegation was led by Vice Premier Cheng Li-chiun and Office of Trade Negotiations Minister Yang Jen-ni, while the U.S. side included Secretary of Commerce Howard Lutnick and Trade Representative Jamieson Greer.
A cabinet task force said the U.S. also granted semiconductors and related products from Taiwan most favorable treatment under Section 232 of the Trade Expansion Act. This is important as Taiwan enjoys the sixth largest trade surplus against the U.S., with semiconductors, information communication technology products, electronic components and parts accounting for 90 percent of the amount.
The reciprocal rate is the same as those on goods from major U.S trade partners such as Japan, South Korea and the European Union, the task force said, adding that the development bodes well for sectors such as auto components and parts, and machine and hand tools.
During the negotiations at the U.S. Department of Commerce, the Taipei Economic and Cultural Representative Office and the American Institute in Taiwan concluded a memorandum of understanding on bilateral trade and investment.
Under this pact, Taiwan’s semiconductor and technology firms will make new, direct investments in the U.S. totaling at least US$250 billion to build and expand advanced semiconductor, energy and artificial intelligence production.
At the same time, Taiwan will provide credit guarantees of at least US$250 billion to facilitate additional investment by Taiwanese firms to establish and expand a full semiconductor supply chain and ecosystem in the U.S.
To create a favorable investment environment for Taiwanese firms, the U.S. also agreed to provide necessary resources such as infrastructure, land, tax credits, utilities and visa applications, the EY said, adding that it will forward the finalized version of the agreement to the Legislative Yuan for deliberation. (SFC-E)
Write to Taiwan Today at ttonline@mofa.gov.tw
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