August 2, 2012

Taiwan, US to resume trade talks in October

Long-stalled trade talks between Taiwan and the US are likely to continue in October, Taiwan's top envoy to the US said Sunday (July 29), after Taiwan's decision to allow restricted import of US beef with ractopamine.

Taiwan is expected to officially announce its decision to conditionally lift the ban on beef containing the leanness-enhancing drug ractopamine in September, representative Jason Yuan said.

Following the announcement, the two sides should start discussing when to resume talks under the Trade and Investment Framework Agreement (TIFA) in October, at the latest, said Yuan in New York, where he was accompanying former Vice President Lien Chan to a meeting of academics.

It is hopeful that the TIFA talks, which have been halted for five years, can then restart by the end of the year, Yuan added.

Taiwan's Legislature passed amendments to a food safety act last week to conditionally allow entry to beef imports containing ractopamine, a move primarily targeted at appeasing Washington, which has long railed against Taiwan's restrictions on beef imports.

Conditions governing imports include setting a safe level for ractopamine residues in beef, issuing separate permits for the importation of beef and pork, mandating labelling of beef imports, and excluding imports of internal beef organs.

So far, messages received from the US have been positive, with the US Congress and the Office of the US Trade Representative praising President Ma Ying-jeou for his determination to solve the trade issue, Yuan said.

Talks under the TIFA, which is seen as a precursor to a fully-fledged free trade agreement, have been halted since 2007 due to the beef dispute, which originally centred on concerns over the safety of US beef following the discovery of mad-cow disease cases there.

Washington considered resuming TIFA talks in late 2010, but decided against the idea in early 2011 after Taiwan seized shipments of US beef containing the drug, which is banned in Taiwan and a number of European nations.