Taiwan

Taiwan, U.S. sign organic equivalency agreement

Tue, 15 Nov 2022 07:37:36 GMT

Organic products from Taiwan and the U.S. can now be sold as organic in either market through a new agreement that establishes the equivalency of organic standards .

The American Institute of Taiwan and the Taipei Economic and Cultural Representative Office in the U.S. recently signed the equivalence agreement, according to a U.S. Department of Agriculture news release.

“This equivalence arrangement streamlines trade in certified organic goods with Taiwan, a key international partner in the organic market sector,” USDA Under Secretary Greg Ibach said in the release. “This arrangement protects and increases access for American organic farmers, ranchers, and businesses to the fifth largest U.S. export market for USDA certified organic products.”

Through the agreement, there is no need for organic producers to have separate certifications to ship to the U.S. or Taiwan, which also avoids added fees, inspections and paperwork, according to the release.

The agreement will pave the way for expanding fruit and vegetable trade between the U.S. and Taiwan, according to the release.
U.S. organic producers sold nearly $92 million in organic products to Taiwan in 2019, a number that is expected to grow by almost 50% in the next five years, according to Organic Trade Association and USDA research.

The U.S. has other similar equivalency agreements with Canada, the European Union, Japan, South Korea and Switzerland.

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Coronavirus disrupts trade in Asia

Fri, 23 Sep 2022 18:11:46 GMT

U.S. agricultural exports to Taiwan and other markets in Asia are facing new logistical and transportation challenges because of the Novel Coronavirus and those conditions may not ease soon, according to a new U.S. Department of Agriculture report.

The USDA Foreign Agricultural Service report, “ Taiwan Impacted as Agricultural Trade Disrupted by Coronavirus ” reports trade with Taiwan is being impacted by new quarantine measures, port closures, vessel delays, and suspended flights as U.S. agribusiness exporters struggle to find available space for cargo.

“While Taiwan has not announced any new quarantine restrictions on shipping vessels, air cargo, or incoming agricultural products due the to 2019 Novel Coronavirus, systemic delays are impacting overall U.S. agricultural exports bound for Taiwan and the world,” the report said.

The report said air cargo is also being disrupted, with airlines reporting severe disruptions in inbound and outbound cargo shipments.

“Many highly perishable agricultural products often move via air cargo, further increasing the strain on export shippers looking for alternatives given container delays,” the report said.

In 2019, U.S. fresh fruit exports to Taiwan totaled $255 million, up 28% from 2018. U.S. fresh vegetable exports to Taiwan in 2019 totaled $71 million, down 11% from 2018.

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Preliminary Trade Agreement Between U.S., Taiwan Garners Approval from Senate

Wed, 19 Jul 2023 20:00:00 GMT

The Senate has approved a preliminary trade agreement with Taiwan, clearing its path to President Biden’s desk for final approval. This legislation was a result of negotiations between the Biden administration and Taipei.

The bill outlines transparency and cooperation terms for future negotiations and could potentially pave the way for stronger tax ties between the U.S. and the island nation. Though the bill had previously been blocked in the Senate, it managed to secure passage due to its bipartisan support.

The bill was initially introduced back in June by Sen. Ron Wyden (D-Ore.), Finance ranking member Mike Crapo (R-Idaho), House Ways and Means Chair Jason Smith (R-Mo.), and ranking member Richard Neal (D-Mass.). These legislators believe that this bill sends a strong message about the willingness of Congress to enhance its trade relationship with Taiwan, subsequently asserting Congress’s constitutional authority over trade agreements.

The leaders also drafted a proposed legislation earlier this month that promises treaty-like benefits for businesses seeking cross-border investment opportunities via the tax code.

Of note: This tax bill will aim to lower withholding taxes on dividends, interest, and royalties associated with cross-border investments, making it accessible for smaller businesses to engage in these types of investments by alleviating related barriers. Thus, encouraging increased economic cooperation and mutual financial benefits between the two nations.