A Better Approach to U.S.-Taiwan Economic Relations

Clark PackardThe United States Trade Representative (USTR) recentlyannounced it would begin formal trade negotiations with Taiwan. Thenegotiating mandate lays out 11 different areas for negotiation, ranging from trade facilitation to labor and the environment. Middlebury College professor Dr. Gary Winslett had a comprehensiveTwitter thread in response to the substance of the announcement, most of which I agree with. Like the Biden administration ’sIndo ‐​Pacific Economic Framework (IPEF), market access (i.e., tariff elimination/ ​reduction) is notably absent from the Taiwan announcement, which is regrettable. For myriad reasons, the United States needs a bold and affirmative Asia ‐​Pacific trade and investment agenda. Neither IPEF nor the Taiwan negotiations are up to the task.For both economic and geopolitical reasons, it is increasingly clear the United States needs to flex its international economic leadership muscles in the Asia ‐​Pacific region. As it stands now, the United States has just two free trade agreements (FTAs) with Asian countries – South Korea and Singapore, respectively. As the Carnegie Endowment’s Evan Feigenbaum hasnoted, the U.S. overemphasizes its security role in Asia and continues to underemphasize its economic role. Unlike Europe, which is more and more sclerotic, Asia is dynamic and rapidly changing. Tearing down trade and investment barriers and setting high quality standards in the region should be top of the Uni...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs