The United States and Taiwan are reportedly working on a deal to enhance economic cooperation in areas like trade, agriculture and supply chains, after the self-ruled island was excluded from US President Joe Biden’s economic framework aimed at countering Chinese influence.
The proposed agreement would be similar to the US-led Indo-Pacific Economic Framework (IPEF), which Biden launched last week in Japan, according to Bloomberg, which first reported the deal, citing unnamed sources.
The IPEF is seen as a substitute for the Trans-Pacific Partnership, which former US President Donald Trump abandoned in 2017, and a key plank of the Biden administration’s strategy to enhance US engagement in the Asia-Pacific.
The framework aims to foster common standards in four broad areas – supply-chain resilience; clean energy and infrastructure; taxation and anti-corruption; and fair trade – but does not expand market access like a traditional free trade agreement.
The framework’s lack of tariff reductions has been met with disappointment in the region, where many export-reliant countries are seeking greater access to the US market.
Joanne Ou, spokesperson for Taiwan’s Ministry of Foreign Affairs, told Al Jazeera that Taiwan has yet to commit to any deal with the US but said “economic and trade relations between Taiwan and the United States have developed more closely” since Biden took office.
Ou said the two sides are due to meet again in the coming weeks following recent talks between US Trade Representative Katherine Tai and Taiwan’s Minister-Without-Portfolio John Deng, during which they agreed to deepen trade and investment.
In the lead-up to Biden’s trip to Asia, there was speculation that Taiwan could be included on the itinerary due to its globally important role in fields such as semiconductors and high-end manufacturing.
Although the IPEF is intended to counterbalance China’s growing clout in the Asia-Pacific, it is likely that some members are reluctant to include Taiwan for fear of upsetting China. Beijing claims the self-ruling democracy as a province that should be reunified with the mainland by force if necessary and has blocked its participation in most international organisations.
“Taiwan, as always, has a struggle. It is well-positioned to join a wide variety of trade arrangements, with a willingness to adjust domestic regulations and policies, if needed, to support trade commitments,” Deborah Elms, founder and director of the Asian Trade Centre in Singapore, said.
“But it has an ongoing political structure that makes it extremely difficult for governments to launch talks with Taiwan.”
A less formal bilateral deal, however, could still bring many of the benefits of the IPEF without the political headache, said Wen-ti Sun, a political scientist who teaches at Australian National University’s Taiwan Studies Program.
Source: Aljazeera
Image Source: Pixabay
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