On the afternoon of June 12, 2023, TeaLa initiated an online forum to discuss the Taiwan-US bilateral trade agreement and its implications for Taiwan's future development. The forum was organized by TeaLa, with co-hosting support from the Taiwan Institute of Economic Research and Huali Foundation.
Following a thought-provoking and comprehensive analysis during the forum, discussions regarding the impact of the Taiwan-US bilateral trade agreement on Taiwan's future development intensified. Representatives and experts from the government, think tanks, and industries were invited to delve into the agreement's effects on Taiwan.
During the forum, experts conducted thorough analysis and discussions concerning the potential consequences of the Taiwan-US bilateral trade agreement on Taiwan's economy, industries, and politics. They highlighted numerous potential opportunities brought forth by the agreement, particularly in terms of facilitating trade and investment cooperation, expanding market access, and enhancing international competitiveness. However, challenges such as industry competition pressure and regulatory adjustments will also need to be addressed.
Amidst the discussion, experts put forward strategies and recommendations aimed at assisting industries in maintaining competitiveness within an increasingly open and competitive market environment. Additionally, the forum explored Taiwan's position and influence on the global stage, as well as the interrelation between the agreement and other regional trade agreements.
Representatives of Taiwan's Government emphasized their dedication to ensuring the agreement's implementation maximally promotes Taiwan's interests.
Legislator Wang Ting-yu stated that the Taiwan-US 21st Century Trade Initiative is advancing on the basis of the Bilateral Trade Agreement (BTA). In terms of substantive economic and trade cooperation, the initiative focuses on creating a fair environment and enhancing investment between the two sides. Especially after the Russo-Ukrainian war, this initiative is crucial for Taiwanese companies to enter the US market and even the global supply chain, as well as for American businesses to establish partnerships in Taiwan.
Chairman Yao-Nan Tan of the Huili Foundation stated that the new generation of trade agreements no longer revolves around market access and tariff reductions. The Indo-Pacific Economic Framework (IPEF) follows the same trend. Therefore, criticizing the Taiwan-US bilateral trade agreement for not opening markets or reducing tariffs does not recognize the changes in the overall environment. The next stage of trade agreements will involve areas such as agriculture, environment, labor, and digital trade, which require cooperation between government and private sectors and adequate preparation. It is also important to avoid double taxation agreements, which would substantially benefit Taiwanese companies. Currently, both Taiwan and the US hope to complete the signing before the end of the year.
Dr. Lien, Ko-Hsiung from the Taiwan Institute of Economic Research's eighth division reflected on the past two decades of WTO mechanisms, which primarily focused on reducing tariffs between industrial products to enable countries to leverage comparative advantages. However, the emergence of state capitalism among many developing economies has given rise to unfair competition by creating a lower marginal cost advantage. Therefore, a trade framework suitable for the 21st century must be formulated, encompassing green transformation driven by climate change in supply chains and emerging cross-border business models in the digital economy. This aligns with the direction pursued by the Taiwan-US 21st Century Trade Initiative, offering prospects for mutually beneficial cooperation between Taiwan and the US in areas such as green transformation and digital trade.
This online forum provided a valuable platform for Taiwanese society, allowing participants from various sectors to gain profound insights into the impact and challenges posed by the Taiwan-US bilateral trade agreement. The successful organization of the forum has garnered increased attention and participation in this significant issue, thereby providing vital references and guidance for Taiwan's future development.
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