An initial agreement reached under the United States-Taiwan Initiative on 21st Century Trade was unanimously approved by members of several Legislative Yuan committees during an extraordinary session on Monday.
Taiwan and the U.S. signed the first set of terms under the initiative on June 1, covering general principles related to customs and border procedures, regulatory practices and small businesses that the two sides hope will facilitate bilateral trade and investment.
Under the agreement, which does not cover tariff reductions or exemptions, Taiwan and the U.S. committed to facilitate bilateral trade and investment flows, promote anti-corruption measures, minimize unnecessary border formalities, and encourage the development of SMEs.
The deal also stipulated the establishment of a "foundation" allowing both sides to address trade and investment challenges and opportunities over time.
The Legislative Yuan, which is holding an extraordinary session from July 17 to 31, completed committee discussions and review of the agreement on July 20.
Lawmakers approved the agreement on Monday in a joint meeting of six legislative committees, including the Economics, Internal Administration, and Finance committees, and it will now be submitted to the full Legislature for consideration.
Democratic Progressive Party caucus convener Ker Chien-ming (柯建銘) said the Initiative on 21st Century Trade is important because it is good for the country, Taiwan-U.S. relations and national development.
Meanwhile, a proposal by lawmakers of the opposition Kuomintang (KMT) was approved that called on the Cabinet and government agencies to get feedback from legislators, experts and stakeholders before reaching an agreement on the remaining items under discussion.
The initiative will now focus on more sensitive topics, including labor, environmental, and agricultural issues, and KMT legislative caucus whip Tseng Ming-chung (曾銘宗) said the Cabinet should make details of talks on those issues public while taking in the opinions of lawmakers.
The goal, Tseng said, was to make the Taiwan-U.S. trade agreement more complete and beneficial to local businesses and the country's economic development.
Following the initial agreement signed by Taiwan and the U.S. on June 1, the two sides said they will soon begin negotiations on more complicated issues, such as agriculture, digital trade, labor, environmental, and nonmarket policies and practices, as well as state-owned enterprises and standards.
