Reference News website, February 13 report: According to the Associated Press, on February 12, the Office of the U.S. Trade Representative stated that the Trump administration reached a trade agreement with Taiwan on local time February 12, and Taiwan agreed to cancel or reduce tariff barriers for 99% of goods.

The Office of the U.S. Trade Representative stated that Taiwan will impose a 15% tax rate or the most favorable tariff treatment offered by the U.S. government on U.S. exported goods. The 15% tax rate is the same as the rate applied by the U.S. to other Asia-Pacific trade partners such as Japan and South Korea.

According to the agreement, Taiwan will invest 250 billion U.S. dollars in industries such as computer chips, artificial intelligence applications, and energy. The Taiwanese authorities also stated that they will provide an additional 250 billion U.S. dollars in credit guarantees to help companies invest in the United States.

The agreement will make it easier for the U.S. to sell cars, medicines, and food in Taiwan. But the key point is that Taiwanese companies will invest in the production of computer chips in the U.S.

Another report from Zhongping News on February 13 states that the Taiwanese authorities have completed the signing of the "Taiwan-U.S. Equivalent Trade Agreement," securing equivalent tariff reductions of 15% without overlapping, as well as the most favorable tariff treatment under Section 232, and has also finalized zero tariffs on 1,482 agricultural products including U.S. passenger cars and beef. In addition, Taiwan has reduced the tax rate on U.S. health supplements to 10%.

Taiwan also committed to purchasing U.S. oil, natural gas, power equipment, and civil aircraft from 2025 to 2029, totaling nearly 3 trillion New Taiwan Dollars (1 New Taiwan Dollar is approximately 0.22 Chinese Yuan — note from this site).

Another report from Today's Taiwan News on February 13 states that the Taiwan and U.S. sides officially signed the "Taiwan-U.S. Equivalent Trade Agreement," establishing an equivalent tariff of 15% without overlap, obtaining the most favorable treatment under Section 232, and securing exemption from equivalent tariffs for 2,072 items exported to the U.S. However, the Taiwanese authorities also agreed to ensure defense spending accounts for at least 3% of GDP. The Kuomintang (KMT) expressed that 15% is not a victory but a heavy cost, which may lead to weakened food security lines and long-term concerns for workers and farmers' rights.

The KMT also raised ten major concerns, demanding the executive branch to explain clearly and thoroughly. The KMT stated that this agreement involves a wide range of areas including healthcare, food safety, energy, labor, and industrial policies, far exceeding the scope of simple tariff negotiations. The KMT faction will continue to strengthen supervision through questioning, project reports, budget reviews, and hearings.

Original: toutiao.com/article/7606346816686146054/

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