The Prospects for an FTA

The 2006 Taiwan White Paper, published in May, pledged AmCham's support for a U.S.-Taiwan Free Trade Agreement (FTA) - provided that Taiwan demonstrates the political will to take on the tough economic issues that are sure to arise during such negotiations. Encouraging signs that the political will does exist came the same week as the White Paper's release. U.S.-Taiwan negotiations in Taipei under what is known as the Trade and Investment Framework Agreement (TIFA) were regarded by both sides as highly productive. That now paves the way for continued detailed talks on such specific topics as IPR, agricultural trade, and pharmaceutical pricing policy.

In early June, when an Amcham delegation visited Washington for the annual Doorknock [see the report on page 33 of this issue], the feasibility of an FTA figured prominently in the discussions with a broad range of U.S. officials and well-informed observers. They were unanimous in the view that it would be impossible - in light of USTR's small staff and already heavy workload - for Taiwan to start and complete the complex FTA talks in the short time left before the U.S. President's "fast-track authority" expires in July 2007. Given the current mood on Capitol Hill, a full extension of that authority was also seen as extremely unlikely.