Just a placebo? The US Taiwan "21st Century Trade Initiative" may have multiple side effects. Century | Trade | Initiative
The Democratic Progressive Party (DPP) authorities signed the first batch of agreements on the 21st Century Trade Initiative with the United States in early June, and its administrative officials praised it as the largest and most comprehensive stage of trade negotiations between the two sides since 1979.
It is understood that the "21st Century Trade Initiative" between the United States and Taiwan has 12 topics. The first batch of agreements includes five topics such as trade facilitation and small and medium-sized enterprises, and seven topics including labor, environment, and agriculture will be discussed in the future. The Democratic Progressive Party (DPP) authorities have announced that they will gradually complete negotiations in the future, strengthen trade with the United States through building blocks, and strive towards signing the Taiwan US Free Trade Agreement.
Taiwan and overseas financial media have noted that the first agreements do not involve tariffs on goods, and there are no items such as market access categories that are usually included in trade negotiations in the future. Taiwan's "Economic Daily" editorial on the 12th pointed out that the "21st Century Trade Initiative" is completely led by the United States, and so far, most of it belongs to framework content, which is very different from the traditional free trade emphasis on tariff concessions and market access. As pointed out in the title of this article, "Taiwan-US Trade Initiative should create Economic benefits", Taiwan's civil society has questioned the substantive benefits of the relevant agreements.
The United States is Taiwan's second largest trading partner. Chen Chong, chairman of the New Generation Financial Foundation, who was the head of Taiwan's administrative agency during Ma Ying-jeou's time, said that Taiwan's need "is to avoid double taxation and is a real free trade agreement and investment protection agreement." and the "21st Century Trade Initiative" is just a placebo.
Being promoted as a major breakthrough in economic and trade is really impressive.
In fact, the Democratic Progressive Party (DPP) authorities have also announced higher goals, but their intention to negotiate the "Free Trade Agreement" and "Trade and Investment Framework Agreement" with the United States has been lacking progress, and negotiations to join the Comprehensive and Progressive Trans Pacific Partnership Agreement and the "Indo Pacific Economic Framework" have not been successful. The 2024 "Two in One" election will be held, and only the vague "21st Century Trade Initiative" can be prepared. As for the previously set goals, the Democratic Progressive Party has instead depicted them as a "roadmap" for future negotiations, that is, as long as the US requirements are met, there is still a possibility of signing the "Taiwan US Free Trade Agreement".
On the eve of the signing of the first batch of agreements, the Democratic Progressive Party authorities immediately sounded drums and gongs, promoting it as an important achievement in expanding foreign trade and economic cooperation. But after the release of relevant content, the level of attention on the island quickly cooled down, and the metaphor of a placebo spread like wildfire.
Placebos generally refer to preparations that do not contain pharmacological components, do not harm patients, and have substitutive and comforting effects.
In terms of public sector issues, if Taiwan's railway, sugar, power and other enterprises receive strong external intervention, it may trigger inflation and bring greater pressure to people's livelihoods and the economy; The digital trade sector is unilaterally beneficial for large US e-commerce companies to occupy a larger market in Taiwan.
In the US Taiwan economic and trade negotiations, the DPP authorities have always been in a position of obedience and cooperation. It remains to be gradually revealed what side effects the "21st Century Trade Initiative" will ultimately bring.
