Taiwan President Defends New US Trade Agreement
US-Taiwan Trade Deal Seen as Major Win by President Lai
REPORTER:
President Lai Ching-te is hailing the new US-Taiwan trade deal, framing it as a major victory for Taipei.
REPORTER:
Speaking at the Commonwealth Economic Forum, Lai gave his first public remarks on the deal since tariff talks with Washington ended. He praised Taiwan’s trade negotiators, saying the deal puts Taiwan on a level playing field with Japan, South Korea, and the European Union.
REPORTER:
The US agreed to lower tariffs on Taiwanese goods from 20 to 15 percent.
REPORTER:
In exchange, Taiwan committed up to $500 billion US dollars for US-based chip manufacturing, half through private investments and the rest through government-backed credit.
REPORTER:
But Taiwan’s opposition parties have slammed the deal, saying it could “hollow out” Taiwan’s chip industry by shifting production overseas.
REPORTER:
Lai, pushing back, says the deal is in line with Taiwanese companies’ global expansion strategy, highlighting the words of chip giant TSMC’s chair and CEO CC Wei.
REPORTER:
TSMC has been generally supportive of the new agreement, saying its US expansion is driven by customer demand, and that its most advanced manufacturing processes will remain in Taiwan.
REPORTER:
Traditional export industries, which may benefit from lower tariffs, have also supported the move.
REPORTER:
The trade deal still needs to get legislative approval in Taiwan, so the president’s speech here is meant to persuade opposition parties to get on board as it moves through the legislature.
