US Considering New Trade Talks with Taiwan

18 Oct 2004 ST&R

In light of the island’s efforts this year to meet US concerns on several issues, the Bush Administration is reportedly considering a resumption of trade talks with Taiwan. Washington had suspended discussions over Taiwanese policies on intellectual property rights (IPR), rice, pharmaceuticals, telecommunications, and government procurement.

However, the two sides have resumed contacts this year, and Taiwan is now pushing to re-start negotiations under the bilateral Trade and Investment Framework Agreement (TIFA) the two sides signed in 1994. A US official expressed cautious support. “We have been working with the economic and trade team in Taiwan to resolve our existing bilateral trade issues,” the official said. “We are encouraged by some of the proposals Taiwan has made recently and we are looking at the possibility of scheduling a TIFA meeting. Doing this of course is contingent on Taiwan following through on its commitments and providing results.”

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EU to lift sanctions on U.S. exports

26 Oct 2004, JOC

The European Union announced it will lift sanctions on U.S. goods in January after Congress repealed $5 billion in export subsidies ruled illegal by the World Trade Organization.

At the same time the European Commission, the EU's executive agency, warned Washington against prolonging the tax breaks beyond the end of 2006.

The penalties on U.S. imports, which began in March at 5 percent of the value of the goods and rose to 12 percent in October, will be removed on Jan. 1, when the U.S. legislation takes effect, EU trade commissioner Pascal Lamy said.

"This has been the biggest of the trans-Atlantic disputes that we have experienced in the last five decades," Lamy said. "We're lifting the sanctions, and that is the essential part of the agreement, but we still have a few doubts about a small part of the system."

Lamy expressed concern American firms will benefit from the export tax breaks until the end of 2006 and some would enjoy the benefits even longer.