The Legislature will review the U.S.-Taiwan trade deal, finalized Thursday local time, before voting on the terms. Only after the Legislature passes the deal will it have legal effect domestically. DPP lawmakers praised the deal, saying the review process must prioritize national interests and social consensus, though opposition members urged the Cabinet to more clearly explain the agreement’s potential impacts.

Early Friday morning, Taiwan time, the U.S. Department of Commerce announced a trade deal which would lower tariffs to 15% without any rate stacking, and secure most-favored-nation status on semiconductors and other products. In exchange, Taiwanese semiconductor and technology companies will invest an additional US$250 billion into the United States, with financial assistance from the Taiwan government. Furthermore, U.S. Commerce Secretary Howard Lutnick stated one goal was to transfer 40% of Taiwan’s entire semiconductor supply chain capacity to the United States during Trump’s term. 

International treaties, agreements, and conventions involving major national matters or the rights and obligations of the people can only go into legal effect after review and approval by the Legislature, according to Supreme Court interpretation. 

Opposition parties called for strict review of the agreement, although DPP Caucus Whip Chung Chia-pin (鍾佳濱) says there is no such “strict” or “lenient” review, only fulfilling one’s legislative responsibility. He said that if the public consensus is in favor of the agreement, then it should naturally be passed. Chung underscored that the standards of one party shouldn’t matter in the face of ensuring national interest, calling this principle the backbone of the legislative duty. 

Other DPP members have argued that Taiwan’s deal is better than those signed by trade competitors Japan and South Korea, citing a lack of time pressure to fulfill investment obligations, and the adoption of the “Taiwan [investment] model.” 

However, KMT Caucus Secretary-General Lo Chih-chiang (羅智強) expressed concern over the possibility of the deal leading to a relocation of Taiwan’s key industries, and potential impacts on Taiwan’s economy and national security. While he acknowledged that alleviating tariffs was a positive change, he maintained that it was the government’s duty to clearly explain the potential repercussions of accepting the act and address the issues head-on.