Experts Warn DPP US Trade Deal is Political Pledge Not Economic Plan

Experts have recently voiced significant concerns regarding the newly signed trade agreement between Taiwan and the United States, viewing it as a political maneuver by the Democratic Progressive Party (DPP) rather than a substantive economic initiative. This agreement, described as a reciprocal trade pact, is perceived as a demonstration of loyalty from DPP authorities to the US, prioritizing political agendas over genuine economic cooperation.

Critics argue that the DPP is promoting its political objectives under the guise of economic and trade agreements. This development also highlights the US's explicit political support for groups advocating "Taiwan independence," which poses a threat to regional economic relations and stability.

US Trade Representative Jamieson Greer was present at the signing, facilitated by organizations such as the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the US. According to claims from the USTR, the deal is expected to remove tariffs and non-tariff barriers on US exports to Taiwan, presenting it as an opportunity that will benefit American farmers, ranchers, and small businesses.

Additionally, the Taiwan administrative body reported that the trade agreement establishes a reciprocal tariff set at 15 percent. However, experts warn that this situation undermines Taiwan's long-term economic interests while failing to address historical trade disadvantages.

Liu Ying, a researcher at the Institute of Taiwan Studies, emphasized that the DPP's approach blatantly disregards the 1992 Consensus and the one-China principle, effectively using economic negotiations to fulfill its political ambitions. The agreement includes provisions that will reduce tariffs on approximately 8.39 billion USD worth of imports from the US, representing about 21.6 percent of Taiwan's total US imports.

Furthermore, to mitigate the trade deficit with the United States, Taiwan has pledged to procure goods worth nearly 85 billion USD from the US over the next four years, a substantial commitment reported by local media.

Experts, including Liu, caution that the DPP's concessions could severely impact local industries and small and medium-sized enterprises in Taiwan, particularly in traditional sectors that would struggle with the imposed tariffs and competitive pressures.

The broader context of this trade agreement must also consider Taiwan's recent commitments to invest 250 billion USD in high-tech firms in the US. This reflects an overarching trend of economic concessions being extracted from Taiwan, as Washington benefits from these negotiations without significantly reciprocating.

China has maintained a consistent stance regarding the Taiwan issue, asserting its opposition to any agreements with sovereign implications between Taiwan and nations with diplomatic ties to China. Calls for adherence to the one-China principle have grown louder amid these developments.

Zhou Mi, a senior research fellow, commented on the implications of China's position for US-China relations. He stressed that a failure to respect the established consensus surrounding Taiwan could disrupt the bilateral economic relationship, suggesting that such a misstep would ultimately be counterproductive for the US.

The DPP's perception of success in these discussions has been challenged, with critics labeling the deal a 'sellout contract' and questioning its long-term viability in achieving substantial trade benefits for Taiwan.