Taiwan Delegation Travels to U.S. for Concluding Session on Trade Accord

Taiwan's trade negotiating team has departed for the United States to hold a final meeting on a recently negotiated reciprocal trade agreement. The deal would lower tariffs on Taiwanese exports to the U.S. and mobilize large-scale Taiwanese investment and credit guarantees to expand semiconductor, energy and artificial intelligence production in the United States. The agreement must be signed and subsequently submitted to Taiwan's parliament for approval.

Key Points

Tariffs on Taiwan's exports to the U.S. would be cut to 15% from 20%, altering trade cost structures for affected goods - impacts trade and manufacturing sectors.
Taiwanese companies plan to invest $250 billion to expand semiconductor, energy and artificial intelligence production in the U.S., with an additional $250 billion in credit guarantees to support further investment - impacts technology, energy and capital markets.
The agreement must be signed and then submitted to Taiwan's parliament for approval, making legislative consent a necessary step before implementation - impacts policy and political risk considerations.

TAIPEI, Feb 10 - Taiwan has sent its trade negotiators to the United States to conduct a concluding meeting on a trade and tariff pact negotiated last month, the island's cabinet said on Tuesday.

Under the terms outlined by the government, tariffs on Taiwanese goods destined for the U.S. market would be reduced to 15% from the current 20%. In parallel, Taiwanese firms have committed to invest $250 billion to scale up production capacity in the United States across semiconductors, energy and artificial intelligence. In addition to direct investment, Taiwan will guarantee an extra $250 billion in credit to facilitate further investment flows into those areas.

Taiwan Vice Premier Cheng Li-chiun and chief trade negotiator Yang Jen-ni left on Tuesday night and are expected to meet with their American counterparts for what the cabinet described as "a final meeting with the U.S. side regarding the 'Taiwan-U.S. Agreement on Reciprocal Trade'." The cabinet said this in a statement announcing the delegation's departure and planned talks.

The government said the process following the final meeting will include public disclosure of the full details once the agreement is signed, and that the signed agreement will then be submitted to Taiwan's parliament for approval.

Official statements from the cabinet reiterate Taiwan's objective to build a strategic high-tech partnership with the United States. The island, described in government comments as a semiconductor powerhouse with a sizable trade surplus with the U.S., views this arrangement as a step toward deeper economic cooperation with its most important international backer despite the absence of formal diplomatic relations.

The negotiations and the promised investment and credit support emphasize production growth in semiconductors, energy and artificial intelligence within the United States, aligning Taiwanese capital and industrial capacity with U.S. high-tech development goals. The cabinet's announcement framed the delegation's trip as the final diplomatic and technical step before the deal can be finalized and presented domestically for ratification.

As communicated by the government, the next milestones are the outcome of the scheduled final meeting in the United States, the formal signing of the agreement, public disclosure of its detailed terms, and the parliamentary approval process in Taiwan.

Risks

The final outcome depends on the scheduled meeting in the United States; the deal is not yet finalized until that meeting concludes and the agreement is signed - impacts timing and market expectations.
After signing, the agreement must be reported publicly and approved by Taiwan's parliament, introducing legislative risk that could delay or alter implementation - impacts investors and firms planning capital deployment.

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