U.S.–Taiwan Agreement on Reciprocal Trade: What the AIT‑TECRO ART Does

Summary

• Establishes a comprehensive reciprocal trade framework between the United States and Taiwan, aiming to enhance reciprocity by reducing tariff and non‑tariff barriers and strengthening bilateral economic cooperation under WTO‑consistent rules. [ustr.gov]
• Delivers market access and regulatory commitments, including preferential tariff treatment, elimination of quotas, limits on import licensing, and acceptance of U.S. standards and conformity assessments in key sectors such as automotive, medical devices, pharmaceuticals, and electronics. [ustr.gov]
• Provides detailed agricultural and SPS disciplines, committing Taiwan to science‑ and risk‑based measures, acceptance of U.S. export certificates, and removal of burdensome inspection and registration requirements for major U.S. agricultural and food products. [ustr.gov]

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More detailed

Overview and Purpose

The Agreement on Reciprocal Trade (ART) establishes a comprehensive framework to rebalance and deepen trade relations between the United States and Taiwan. Concluded under the auspices of AIT and TECRO, the agreement seeks to address both tariff and non‑tariff barriers, facilitate digital and goods trade, and strengthen economic and supply‑chain cooperation between the two sides. [ustr.gov]

The preamble emphasizes shared values, economic prosperity, technological cooperation, and resilience of supply chains, while explicitly grounding the agreement in WTO principles and earlier U.S.–Taiwan trade arrangements. [ustr.gov]

Institutional Structure and Scope

• Designated Representatives:
  • For the United States side (AIT): the Office of the U.S. Trade Representative (USTR)
  • For the Taiwan side (TECRO): the Office of Trade Negotiations, Executive Yuan [ustr.gov]
• The agreement applies to the customs territory of the United States and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu, consistent with WTO terminology. [ustr.gov]

Tariffs and Quotas

The ART establishes reciprocal tariff commitments through detailed annexes and schedules:

• Tariffs:
  • Taiwan commits to applying preferential tariff rates to U.S. originating goods as set out in Schedule 1 to Annex 1.
  • Certain U.S. agricultural goods are protected from additional safeguard duties under WTO agriculture rules. [ustr.gov]
• Quotas:
  • Taiwan agrees not to impose quotas on imports of U.S. originating goods under the agreement. [ustr.gov]

Non‑Tariff Barriers and Regulatory Cooperation

A central element of the ART is the removal or limitation of non‑tariff barriers (NTBs):

• Import licensing must not be used in a way that restricts trade or reduces competitiveness of U.S. exports, and must be transparent and non‑discriminatory. [ustr.gov]
• Technical regulations and conformity assessment:
  • Taiwan commits to accepting U.S. conformity assessment results in defined circumstances.
  • This includes acceptance of U.S. standards and testing for sectors such as automotive and electronics, reducing duplicative regulatory burdens. [ustr.gov]

Automotive, Medical Devices, and Pharmaceuticals

The agreement contains sector‑specific commitments of high commercial relevance:

• Automotive:
  • Within six months of entry into force, Taiwan must allow importation and sale of U.S. vehicles that comply with U.S. Federal Motor Vehicle Safety Standards and emissions standards, without requiring additional local testing or procedures. [ustr.gov]
• Medical devices and pharmaceuticals:
  • Taiwan agrees to recognize U.S. regulatory approvals and to ensure fair, transparent treatment in market access and reimbursement systems. [ustr.gov]

Agriculture and Sanitary & Phytosanitary (SPS) Measures

Agriculture is addressed in exceptional detail:

• Taiwan commits to science‑ and risk‑based SPS measures, avoiding disguised restrictions on trade. [ustr.gov]
• The agreement covers market access and inspection procedures for beef, pork, poultry, dairy, aquatic products, and agricultural biotechnology.
• For many products, Taiwan agrees to accept U.S. export certificates (e.g., FSIS, AMS, NOAA) without imposing additional registration or inspection requirements. [ustr.gov]

Strategic Significance

The ART goes beyond a traditional tariff‑cutting exercise. It:

• • Anchors U.S.–Taiwan trade relations in a rules‑based, WTO‑consistent framework.
  • Targets long‑standing NTBs in sensitive sectors such as autos, agri‑food, and healthcare products.
  • Supports broader policy objectives, including supply‑chain resilience, high‑tech cooperation, and closer economic alignment between the two economies. [ustr.gov]

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