July 9, 2010

US rules out Taiwan free trade pact

The US has dismissed talk of signing a free trade agreement (FTA) with Taiwan due to a long-standing row over beef imports, days after the island signed a wide-ranging pact with mainland China.

"The US has no plans to begin talks with Taiwan about an FTA at this time," David Shear, the State Department point-man on China-Taiwan ties, said Wednesday (Jul 8).

He added that in spite of excellent relations, the Washington government has been "disappointed by the lack of progress the US and Taiwan have made on trade issues" in recent years.

Negotiations between the US and Taiwan on a Trade and Investment Framework Agreement, often a precursor to a full-fledged FTA, have been dormant since 2007. Shear said such talks would be the best forum to discuss trade.

With lawmakers from farm states leading the charge, the US has been pressing for years for lucrative Asian markets such as Japan, South Korea and Taiwan to accept more US beef, causing friction with the close US partners.

Taiwan relaxed its ban on beef imports from the US last October, but re-imposed restrictions three months later after the decision to lift the ban threw the island into a political turmoil.

Despite the disagreement, Shear expressed his hope that the beef issue would not undermine other trade and reiterated the US's commitment to security in Taiwan.