The Biden administration said on Wednesday that it would begin formal trade negotiations with Taiwan this fall, after several weeks of rising tensions over the island democracy that China claims as its own.
The announcement marks a step toward a pact that would deepen economic and technological ties between the United States and Taiwan, after initial talks were announced in June. But relations between the United States and China have markedly deteriorated since then, on the heels of visits by two delegations of U.S. lawmakers to Taiwan this month, including by Speaker Nancy Pelosi.
The trips angered the Chinese government, which sees the island as an incontestable part of its territory, and it has responded by ramping up military drills and firing missiles into the waters around Taiwan. The United States, in turn, has accused China of using the visits as a pretext to step up operations to intimidate Taiwan, and has vowed to maintain its own military operations in the region.
Despite its small size, Taiwan is the United States’ eighth-largest trading partner. It is an important market for U.S. agriculture and a key supplier of technology, particularly advanced semiconductors.
Talks for the pact, called the U.S.-Taiwan Initiative on 21st-Century Trade, will focus on 11 trade areas, the announcement from the Office of the United States Trade Representative said, including expanding trade in agriculture and digital industries, raising labor and environmental standards, and enhancing trade between small and medium-size businesses.
The governments also said they would combat market distortions caused by state-owned enterprises, as well as nonmarket policies and practices — an apparent nod at China, where such practices are common.
China responded to the news of the trade talks with displeasure. Shu Jueting, a representative for China’s Ministry of Commerce, said: “China always opposes any form of official exchanges between any country and the Taiwan region of China, including negotiating and signing any agreements with sovereign connotations or an official nature.”
She added that China would “take all necessary measures to resolutely safeguard sovereignty, security and development interests.”
The U.S.-Taiwan trade initiative will be negotiated by the American Institute in Taiwan, which is the unofficial U.S. embassy in Taipei, and the Taipei Economic and Cultural Representative Office in the United States, which represents Taiwan in Washington in the absence of diplomatic recognition.
The Biden administration is also carrying out a separate trade negotiation with 13 Asian nations to form a pact known as the Indo-Pacific Economic Framework. Taiwan has expressed interest in joining those talks, but given its contested status, it has not been invited to participate.
In a briefing on Wednesday, Daniel J. Kritenbrink, the assistant secretary of state for East Asian and Pacific affairs, defended what he called “an ambitious road map for trade negotiations” with Taiwan.
“We will continue to fulfill our commitments under the Taiwan Relations Act,” he said. “That includes supporting Taiwan’s self-defense and maintaining our own capacity to resist any resort to force or other forms of coercion that would jeopardize Taiwan’s security. And we will continue, consistent with our ‘one China’ policy, to deepen our ties with Taiwan, including through continuing to advance our economic and trade relations.”
Austin Ramzy contributed reporting and Claire Fu contributed research.
Source: Economy - nytimes.com
