US-TAIWAN TRADE BILL: FOSTERING TRANSPARENCY & GROWTH

FOSTERING TRANSPARENCY & GROWTH

The United States-Taiwan Initiative on 21st-Century Trade First Agreement Implementation Act (H.R. 4004) is a bipartisan bill that formally validates Congressional endorsement of the trade agreement negotiated between the Biden Administration and Taiwan. Making its way to President Biden for approval, this legislation outlines stipulations for the initial agreement but also any future accords with Taiwan before they can take effect. H.R. 4004 lays the groundwork for a trade relationship between the United States and Taiwan.

UNITED STATES-TAIWAN INITIATIVE ON 21ST-CENTURY TRADE FIRST AGREEMENT IMPLEMENTATION ACT 

H.R. 4004 outlines administrative requirements for negotiating future agreements under the US-Taiwan agreement, including specific provisions that govern the agreement’s implementation and approval. After June 1, 2023, the agreement can only take effect 30 days after the President certifies Taiwan’s compliance to Congress in writing. The U.S. Trade Representative (USTR) must share all U.S. negotiating texts with Congress before sharing them with Taiwan or other parties. Future agreements must have the text made public on the USTR website at least 60 days before entering into the agreement and require approval through legislation. H.R. 4004 reinforces Congress’ authority over international trade and signals its endorsement of the “Initial Agreement” negotiated between the Biden Administration and Taiwan.

Under the previous trade promotion authority law, the administration had the power to eliminate duties on goods with tariffs up to 5% and cut other tariffs without congressional approval. H.R. 4004 emphasizes Congress’s constitutional authority over trade.

“This agreement, which was signed by representatives of the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States, is intended to strengthen and deepen the economic and trade relationship between the United States and Taiwan. We thank our Taiwan partners for helping us reach this important milestone and look forward to upcoming negotiations on additional trade areas set forth in the initiative’s negotiating mandate.”
Sam Michel
U.S. Trade Representative Spokesperson 

U.S.-TAIWAN TRADE AGREEMENT

The agreement between the United States and Taiwan covers trade facilitation and regulatory practices to benefit American businesses and Taiwanese customers. It aims to simplify border procedures, reducing red tape and enhancing efficiency for smoother and more affordable product imports to and from Taiwan.

Chapters of the trade agreement address:

Customs Administration and Trade Facilitation – 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.

Good Regulatory Practices – Improved transparency tools and mechanisms 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.

Services Domestic Regulation – 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. It also prohibits licensing rules that discriminate on the basis of gender.

Anticorruption – Building on the anticorruption framework established in the United States-Mexico-Canada Agreement, this chapter addresses money laundering, denial of entry for foreign public officials, the recovery of proceeds of corruption, and enhanced protections for corruption whistleblowers.

Small- and Medium-Sized Enterprises (SMEs) – The negotiated text 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 United States-Taiwan Initiative on 21st-Century Trade First Agreement Implementation Act (H.R. 4004) represents a bipartisan effort to foster transparency and growth in the trade relationship between the United States and Taiwan. H.R. 4004 reinforces Congress’ constitutional authority over trade matters, with a focus on streamlining border procedures and enhancing efficiency.

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