Taiwan to Buy Large Amounts of American Agricultural Products
Agricultural delegation led by Chen Junji, the leader in charge of agriculture in Taiwan, signed three letters of intent on the 17th at the U.S. Capitol, committing to purchase over $10 billion worth of agricultural products from the United States over the next four years. This large-scale purchase comes amid tariff negotiations between Taiwan and the U.S., with outside speculation about whether it could become a bargaining chip in the negotiations.
The "Taiwan Agricultural Product Trade Delegation to the U.S. for Friendly Visits in 2025," led by Chen Junji, arrived in the U.S. on the 14th and signed three letters of intent with grain and livestock producers at the U.S. Capitol on the 17th, pledging to purchase more than $10 billion worth of agricultural products over the next four years, including soybeans, corn, wheat, and beef.
Chen Junji stated that the agricultural delegation visits the U.S. every two years, with annual procurement amounts around $1.9 billion. This time, the amount has been increased to $2.5 billion, representing a 25% increase compared to the average of the past five years, as a result of discussions with many industry players. They hope to accelerate the production efficiency of Taiwan's livestock industry by importing high-quality feed raw materials.
However, this large-scale purchase coincides with ongoing tariff negotiations between Taiwan and the U.S., leading to speculation about whether it could be used as a bargaining chip. According to a report by Central News Agency, Chen Junji responded that the expanded procurement is based on market demand and not directly funded by the government. However, he also admitted that stable purchasing behavior could help create a favorable atmosphere for future negotiations and foster conditions for reducing tariffs.
Gail H. Oh, Director of the Asia Program at the German Marshall Fund, wrote that the increased agricultural procurement by Taiwan to the U.S. is a boost for the Taiwan-U.S. tariff negotiations. It can continue to persuade the Trump administration to lower tariffs. Especially, Taiwan's current tariff rate remains at 20%, higher than Japan, South Korea, and the EU.
The Taiwan agricultural delegation will soon split into three groups to visit U.S. agricultural states and local governments. The soybean and corn group will visit Arkansas, Ohio, and Indiana. The wheat group will visit South Dakota, Montana, and Idaho. The beef group will go to Florida and Texas.
According to an analysis by Key Comment Network, these states are mainly strongholds of Republican support controlled by Trump, especially Florida and Texas, which are places where many foreign companies have invested factories or companies. This indicates that the Taiwan delegation has deliberately considered the domestic political landscape in the U.S. to gain maximum support from the Trump administration.
The U.S. has long been the largest importer of agricultural products from Taiwan. Chen Junji pointed out in August that the trade deficit in agricultural products between Taiwan and the U.S. had reached $2.8 billion in 2024, with the import value of U.S. agricultural products to Taiwan being $3.69 billion, while the export value from Taiwan to the U.S. was approximately $890 million, accounting for 18% of total agricultural exports. Since 2022, the U.S. has risen to become Taiwan's largest export market.
Source: rfi
Original: www.toutiao.com/article/1843691645401225/
Statement: This article represents the views of the author.