Taiwan and US Sign First Agreement under 21st Century Trade Initiative

Lightning Over China and Taiwan (NASA, International Space Station, 07/27/14)
Lightning Over China and Taiwan (NASA, International Space Station, 07/27/14) by NASA’s Marshall Space Flight Center is licensed under CC-BY-NC 2.0

According to a news release from the Office of the President of Taiwan sent on June 1, 2023:

Taiwan and US sign first agreement under 21st century trade initiative

On June 1, the first agreement under the Taiwan-US Initiative on 21st-Century Trade was signed at the American Institute in Taiwan (AIT) Washington Headquarters by Representative to the US Bi-khim Hsiao (蕭美琴) and AIT Managing Director Ingrid Larson. President Tsai Ing-wen affirmed the signing of this agreement and said that she looks forward to Taiwan and the US building an even closer partnership, which will bring about more opportunities for Taiwan’s economy and industries.

President Tsai stated that the initiative is the most comprehensive trade agreement signed between Taiwan and the US since 1979, and that aside from creating more opportunities to develop our bilateral trade, it represents a key step in Taiwan’s efforts to sign trade agreements with major trading countries. This first agreement lays the groundwork for negotiations on seven different topics: labor, environment, agriculture, digital trade, standards, state-owned enterprises, and non-market policies and practices. The president further stated that following negotiations, the areas covered in this initiative will be expanded, setting a firm foundation for a future Taiwan-US free trade agreement. She also expressed hope that our two sides will continue to strengthen trade ties around this framework.

President Tsai praised and thanked Minister without Portfolio John C. C. Deng (鄧振中) for leading the Executive Yuan Office of Trade Negotiations and for coordinating with Representative Hsiao and different government agencies to facilitate this historic breakthrough in Taiwan-US trade development. However, as our mission has not yet been completed, President Tsai encouraged everyone across government to keep working to enhance our trade capacity, ensure our economic security, and achieve the best possible results for Taiwan and the US.

TPP discusses UK membership.

united kingdom marching band
Photo by David Jakab on Pexels.com

According to the Kyodo news, the current 11 members of the Trans-Pacific Partnership (TPP) began discussing the United Kingdom’s bid to join the trade pact. If approved, the UK will be the 12th member since the creation of the TPP in 2018. At the time of this post, China and Taiwan have also submitted applications to join the free trade agreement.

While typically known as the TPP, the official name is called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP. The chair of the organization rotates and the current chair is Japan.

Entry to the CPTPP requires applicant countries to revise their domestic laws and regulations to meet TPP criteria. If approved, the UK will join Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Taiwan’s CPTPP application followed by China’s CPTPP application.

city during nighttime
Photo by Timo Volz on Pexels.com

According to a Reuters article, Taiwan’s economy minister, Mei-hua Wang, voiced concern last week after China’s “sudden” decision to apply to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) following Taiwan’s application.

In response, the Taiwan economy minister claims China’s current policies are counter to the principles of free trade and transparency expected by CPTPP members – such as China’s use of import bans and potential inability to meet the high standards required of CPTPP participating countries.

According to the Reuters article, one such motivation for China’s sudden application is because China views Taiwan as part of its territory and does not want Taiwan to join before they join.

The CPTPP was originally going to be known as the Trans-Pacific Partnership (TPP) but the trade agreement was drastically changed in 2017 when former President Donald Trump withdrew the US from the agreement. This led to creation of the current CPTPP linking the following countries: Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Besides Taiwan and China, Britain is also applying for membership.

Lastly, Reuters writes Taiwan has been heartened by recent progress towards trade agreements with the United States and the European Union, which are both frustrated with China’s lack of progress in opening its economy and are keen to show their support for Taiwan’s democracy and much freer market policies.

Taiwan to join the Trans-Pacific Partnership?

Hsinchu, Taiwan.

The Obama administration supported the US’s participation in Trans-Pacific Partnership (TPP) – a multilateral trade agreement between the US and 11 other nations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. When President Donald Trump won the presidency in 2016, he fulfilled his campaign promise and withdrew from the TPP.

Following the US withdrawal – the remaining nations named the trade deal the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) linking Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

This past week, Taiwan announced they will submit an application to join the CPTPP. New member applications are required to hold informal talks with existing member and reach a consensus before they can apply.

One potential roadblock for Taiwan’s entry into the CPTPP could be China’s joint application to join the CPTPP.

If you have any questions about the TPP, CPTPP or any other trade agreement – contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

Potential antidumping duties on tires from Korea, Taiwan, Thailand and Vietnam?

pexels-photo-1236788

Photo by Leo Cardelli on Pexels.com

On May 13, 2020, The United Steelworkers (USW) union announced they were filing antidumping and countervailing duty petitions on passenger vehicle and light truck (PVLT) tires from Korea, Taiwan, Thailand and Vietnam.

The petition by the USW claims tires from the 4 countries are “dumped” into the US after being made at a much cheaper cost than can be produced by US manufacturers. Potential dumping margins listed in the petition range from as low as 33% to 217%. As you are aware, the USW previously obtained AD/CVD orders on PVLT tires from China in 2015 that led to a drastic reduction of Chinese tire imports. However, the AD/CVD orders had the indirect impact of shifting tire manufacturing to Korea, Taiwan, Thailand and Vietnam.

The full press release can be found here.

If you have any questions on how the potential antidumping and countervailing duties will impact your business, contact trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

Taiwan customs officers seize exports of face masks.

pexels-photo-1933566

Photo by Timo Volz on Pexels.com

According to the Focus Taiwan website, airport officials seized 3,020 surgical face masks from a Taiwanese citizen heading to Singapore in late February – the largest seizure since export restrictions on face masks were put in plate in late January due to the corona virus.

Each Taiwanese citizen is permitted to export 250 masks per trip. After seizing the face masks, Customs returned 250 to the passenger. The seized masks will be sent for use by the government in their efforts to prevent the spread of the corona virus.

I usually don’t post about non-US customs seizures, but found this article interesting for several reasons:

  1. No mention of secondary inspections, no seizures followed by a letter from CBP with threats of a civil penalty, etc.
  2. Sounds like the seizure process in Taiwan is slightly more painful than in the US and it appears the traveler didn’t miss her flight. If this happened in the US and there was a restriction on the export of face masks, I’m sure she would have been detained, all her belongings searched and then held in detention until they missed their flight.
  3. While it seems like this would never happen in the US since it appears to lack due process for a taking by the government, and while I am usually very supportive of individuals who have their goods (especially currency) seized, this time I am siding with the Taiwanese government on this one.

Interesting to note, the Taiwan customs reported confiscating over 171,450 face masks over 851 seizures since the rule was passed on January 24th. Besides export control efforts at the airport, Taiwan Post (equivalent to our USPS), has also seized outbound shipments of surgical masks destined for overseas. The ban on exports ends on April 30th unless extended. I also read another article from Focus Taiwan that Taiwan is expected to ramp up production of face masks to about 13 million per day.

Anyways, interesting read and the first time I’ve heard of a customs seizure at an airport in a foreign country.

Questions about customs seizures? Give me a call or text, David Hsu at 832.896.6288 or by email at attorney.dave@yahoo.com.

Taiwan seeks entry into CPTPP

Ship Exiting Harbor - Tony Tan

Credit: Tony Tan

As reported by the Central News Agency in Taiwan – Taiwan’s President, Tsai Ing-wen (蔡英文) said she hopes Japan will support Taiwan’s admission into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Since the US’s withdrawal, Japan has led the trade initiative and President Tsai hopes the strengthening ties between the two nations will help Taiwan enter the CPTPP.
Part of this recent push could be related to the recent loss of two of Taiwan’s diplomatic allies – Pacific island nations of Kiribati and the Soloman Islands. The loss of these two allies is the result of a pressure campaign by China and reduces Taiwan’s diplomatic allies from 17 to 15.

Canada’s Global Affairs consults whether South Korea, Taiwan, Thailand and the UK should join CPTPP.

The Global Affairs Canada organization includes individuals, businesses (including SMBs), industry associations, experts, consultants, academics, civil society organization, labour unions, governments, indigenous groups, students and youth and other interested Canadian stakeholders.

In late July, Global Affairs Canada started discussions whether South Korea, Taiwan, Thailand and the United Kingdom should join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”).

An announcement was published in the Canada Gazette, Part 1. Global Affairs Canada has has begun soliciting comments for whether these countries (and China) should join the CPTPP. The deadline for submissions is midnight, August 25, 2019.

The announcement asks for the following information:

1. Contributor’s name and address and, if applicable, the name of the contributor’s organization, institution or business;
2. The specific issues being addressed; and
3. Where possible, precise information on the rationale for the positions taken, including any significant impact it may have on Canada’s domestic or international interests.

Additionally, they would like feedback on specific markets that Canadians and businesses would support entry to the CPTPP.

The full text of the announcement and additional topics Global Affairs Canada would like feedback on can be found here:

http://www.gazette.gc.ca/rp-pr/p1/2019/2019-07-27/html/notice-avis-eng.html#nL5

 

American economist warns Taiwan not to take sides in US-China trade war.

architecture color countryside field

Photo by Pixabay on Pexels.com

According to Taiwan News online, American economist Tyler Cowen said on Monday (July 8) that Taiwan cannot afford to take sides in the U.S.-China trade war, reported Central News Agency.

The publication Business Today (今周刊) invited Tyler Cowen for a panel discussion in Taiwan in which Cowen argued Taiwan may be a loser in the trade dispute between the US and China if they chooe which of the two biggest economic powers to support.

According to Cowen, Taiwan is in a catch-22 situation, Cowen states: “Taiwan is close to China, has made massive investments, and high-income manpower flows into China. On the other hand, China’s increased military deployments in the South China Sea should be a clear sign that China’s intentions are not friendly”.

According to Taiwan News, Tyler Cowen is an economics professor at George Mason University and serves as general director of George Mason’s Mercatus Center, a university research center that focuses on the market economy.

If you have any questions or would like to learn how to save on duties during the current US/China trade war, contact experienced trade and customs attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Taiwan to cut tariffs on sake and Japan farm and fishery products as it looks to join TPP.

architecture bird s eye view buildings city

Photo by Ingo Joseph on Pexels.com

According to the Japan Times, in an effort to join the Trans-Pacific Partnership multilateral free trade pact (formerly the Trans-Pacific Partnership), Taiwan will lower its tariffs on Japanese sake from 40% to 20% along with reductions in tariffs for Japanese farm and fishery products. The reduction in tariffs is to demonstrate Taiwan’s commitment for free trade.

While open to free trade, Taiwan still does not allow imports from five Japanese prefectures impacted by the Fukushima nuclear power station crisis that occurred in 2011.

Will post any updates if and when Taiwan is admitted to the TPP.