The World Needs a US-Taiwan Free Trade Agreement
Taiwan has often utilized creative ways to expand its engagement with the world. In recent years, Taiwan has focused on building its soft power. Some experts say that Taiwan should develop its image as a human rights model as a way to solidify its positive global image. Others have suggested Taiwan put emphasis on signing a Free Trade Agreement (FTA) with the United States. In a way it would build Taiwan’s capacity to elevate its economy and global influence by strengthening its ties with the United States.
An FTA is an agreement between countries that allows a free-trade area with better opportunities to encourage international trade. If Taiwan were to sign an FTA with the United States, it would strengthen ties between both sides and provide a platform for greater cooperation. Currently, it looks like an FTA is becoming increasingly possible. An FTA with the United States should be thought out carefully by policymakers. An agreement would need to be created in a way to include the bigger picture and to encompass trade across all industries in Taiwan and the United States.
In an article from The Wilson Center (A U.S.-Taiwan Free Trade Agreement: A Win-Win? | Wilson Center), there are currently some political stumbling blocks to the US-Taiwan FTA which could delay the process. Some areas where Taiwan and the United States could benefit from an FTA is finance, medical, and education services.
China and Hong Kong remain Taiwan’s key markets in terms of its current economic makeup. Diversifying its trade would give Taiwan more flexibility. The FTA would need to encompass a large amount of industries in Taiwan. Taiwan is strong in the medical, IT and technology sector, but Taiwan has also a strong food industry.
Tsai Ing-wen has pursued loosening a ban on certain US meat imports, which would ease the movement toward an FTA. As Taiwan is seeking to engage the international community, a key element will be signing an FTA with the United States. Taiwan is ranked the 14th largest importer of American goods, and each side has exported billions of dollars. The economies would greatly benefit from a FTA between Taiwan and the United States. According to Forbes, Taiwan is exporting billions of dollars of goods into the USA, and this would only increase when a FTA is signed between the two sides.
An FTA would bring more benefits to Taiwan and strengthen the American economy. In reality, the benefits of an FTA with Taiwan extend beyond just economic growth. Perhaps most importantly, it would demonstrate the long-term strength of the US-Taiwan relationship.
