Taiwan's Concession on Meat Could Ease Future Trade Pact Talks

Ministry of Economic Affairs officials regard the concessions on U.S.-imported pork and beef would ease the path towards negotiating future trade agreement pacts.

For the signing of trade agreements like a bilateral trade agreement (BTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Economics Minister emphasized the need to allow U.S.-imported pork and beef into Taiwan. Economics officials believe it would strengthen ties with the U.S. as well.

The Economics Ministry cited Chung-Hua Institution Economic Research models that if Taiwan can sign a BTA with the U.S. in the future, the resulting removal of tariffs and other barriers would increase export value to the U.S. to USD$1.9 billion.

Taiwan's industries that would benefit from signing a BTA include machinery products, chemicals, steel, aluminum, metal tools, rubber products, and optical products (panels).

Regarding CPTPP, Wang said if the BTA signing with the U.S. is successful, it will serve as an example for easier negotiations with BTAs with other countries. If Taiwan joins the CPTPP, the textile industry will reap the most significant benefits, followed by rubber products, steel and aluminum, processed foods, paper-related products, and automotive.

Many industries have reached out to the Economic Ministry as of late, to implore government assistance, as Taiwan's lack of FTAs with other countries has severely hindered Taiwan's products from competing against other countries due to tariffs. However, as BTA talks are not yet in progress, whether Taiwan's concession would prompt freer negotiations is still uncertain. Wang said whether there would be further barriers in the way of a future BTA would depend on future negotiations.