TAIPEI (TVBS News) — Taiwan and the U.S. officially signed the Taiwan-U.S. Agreement on Reciprocal Trade (ART) on Friday (Feb. 13), marking a pivotal moment in Taiwan's economic landscape. Vice Premier Cheng Li-chiun (鄭麗君) announced in a press conference that the Executive Yuan (行政院), Taiwan's cabinet, will submit the agreement to the Legislative Yuan (立法院), the island's legislature, for review under the Conclusion of Treaties Act (條約締結法), alongside the memorandum of understanding (MOU) signed on Jan. 15.
The agreement successfully reduced the average tariff on Taiwanese exports to the U.S. to 15% without raising existing rates, granting exemptions for over 2,000 products. In return, Taiwan agreed to zero tariffs on U.S. small passenger vehicles and beef. President Lai Ching-te (賴清德) highlighted this as a transformative moment for Taiwan's economy, stating that Taiwan has secured greater advantages than other countries in the global market.
Lai outlined six key objectives achieved through the negotiations, including enhancing industrial competitiveness, ensuring food security and industrial resilience, protecting public health, optimizing Taiwan-U.S. economic and trade systems, establishing a reliable industrial supply chain, and defining a high-tech strategic partnership between Taiwan and the U.S. He emphasized that Taiwan has secured the most favorable tariff treatment among U.S. trade surplus countries, aligning with international standards.
Taiwan also committed to a substantial procurement plan with the U.S., estimated at US$84.8 billion (approximately NT$2.7 trillion) over the next five years. This plan includes purchases of liquefied natural gas, power equipment, and commercial aircraft, aimed at balancing the trade deficit and strengthening the strategic partnership. Additionally, Taiwan pledged to enhance export controls and investment reviews to ensure key technologies, such as semiconductors, align with U.S. security frameworks.