May 12, 2008
U.S. Will Continue Deepening Economic Ties With Taiwan: AIT Director
Taipei, May 9, 2008 (CENS)--Stephen M. Young, AIT (American Institute in Taiwan) director, pointed out yesterday (May 8) that the U.S. government will continue deepening the U.S.-Taiwan economic ties via talks for various bilateral economic and trade agreements after Taiwan`s new government swears into office, ruling out, however, the possibility for the signing of a free trade agreement (FTA) for the time being.
The U.S. government, said Young, will continue discussing with Taiwan for the signing of trade and investment agreement, government procurement agreement, and agreement for avoidance of double taxation, under the existing trade and investment framework agreement (TIFA) between the two parties.
Young noted that it is not a good timing now to discuss FTA since the Bush government is unlikely to engage in such talk with any nation on the eve of its departure.
Meanwhile, the Ministry of Economic Affairs (MOEA) noted that representatives from the U.S. and Taiwan will convene in July to engage in talks for bilateral investment agreement. The Office of Trade Negotiations, MOEA, pointed out that the bilateral investment agreement will be based on a draft version proposed by the U.S. in 2004, using the U.S.-Paraguay investment agreement, signed last year, as a reference.
The agreement will cover two major aspects, one of which is the most-favored nation treatment and national treatment, including the elimination of restrictions on corporate executives and requirement of export ratio for investors. The other is the reservation list for investment permission, including existing restriction of the U.S. on investments in marine shipment and broadcasting business by foreigners, and the restriction on foreign investments in telecom and finance in Taiwan.
(by Philip Liu)