Bipartisan Support for Taiwan Fuels Speculation of Potential Free Trade Agreement, Indicates U.S. Business Group

The American Chamber of Commerce in Taiwan’s chairman articulated a sense of optimism regarding the substantial bipartisan support for Taiwan within the United States, suggesting the potential for a future free trade agreement. This buoyancy stems from significant advancements in ongoing discussions, the chairman highlighted during remarks made on Thursday.

Taiwan, renowned for its robust semiconductor production, has consistently advocated for a free trade agreement, signaling a significant display of solidarity with the island nation amid persistent diplomatic and military pressure from Beijing, which asserts sovereignty over Taiwan. Taiwan underscores its reliability as a partner closely aligned with U.S. democratic values, positioning itself as a strategic ally in the region.

While Taiwan found itself excluded from the Biden administration’s Indo-Pacific Economic Framework (IPEF) in 2022—a comprehensive regional economic strategy aimed at countering China’s growing influence—the administration pivoted to initiate discussions with Taiwan under the “21st Century” trade initiative.

Dan Silver, the chairman of the American Chamber of Commerce in Taiwan, delivered remarks during the unveiling of the organization’s annual White Paper, emphasizing that substantial progress toward a free trade deal could be achieved if the “21st Century” agreement reaches fruition.

Silver underscored the pivotal role of political will in the process, noting Taiwan’s notable prominence in the United States Trade Representative’s (USTR) 2024 agenda. With over 570 member companies represented, the chamber underscores the shifting landscape of bilateral trade agreements in Washington, pointing out Taiwan’s exceptional bipartisan support as a critical factor in negotiations.

Expanding on the theme, Silver concluded by suggesting that, with the impending completion of the “21st Century” initiative and the steadfast bipartisan backing for Taiwan in Congress, the prospect of a bilateral trade agreement in the future is not only viable but increasingly likely.

Meanwhile, Beijing’s consistent opposition to the “21st Century” trade discussions and any substantive engagement between the United States and Taiwan, given the absence of formal diplomatic ties, underscores the geopolitical tensions at play in the region, presenting challenges and opportunities for all involved parties.