Taiwan and the United States officially signed the Agreement on Reciprocal Trade with Taiwan (ART) on Thursday, local time. President Lai Ching-te (賴清德) said the agreement is a major step forward for national interests and breakthroughs. He announced the Presidential Office will establish a national economic “steering group,” where he will serve as convener, to navigate structural economic challenges. 

The president reviewed the successes of the ART, including tariff reduction to 15%, and securing Most-Favored-Nation status for semiconductors and related products and materials. However, Lai also said that this agreement marks five major breakthroughs for Taiwan as well, which will drive industrial and economic upgrade and transformation.

Lai pointed out that, through the ART, Taiwan will reverse previous trade disadvantages from the lack of a free trade agreement with the United States. Second, Taiwan will align food safety, industrial standards, and economic and trade systems with global norms. Third, establishing a “Taiwan Model” in the United States will facilitate closer integration of Taiwan’s semiconductor and ICT prowess with leading U.S. AI industries, while also incorporating economic reliance and supply-chain resilience, which will make Taiwan a key player in establishing non-red global supply chains. Finally, the ART partnership will allow Taiwan to become integral in the U.S. goal of bringing manufacturing back to the country, while allowing Taiwan to expand further into the global markets.

Finally, Lai announced the Presidential Office’s plan to establish a "steering group,” which Lai himself will convene, in conjunction with the Cabinet’s Economic Development Commission led by Premier Cho Jung-tai (卓榮泰). The group's work will focus on strategies and implementation plans to address structural economic issues to “elevate [Taiwan’s] economy to a new level.”

The president urged the legislature to cooperate, saying that the Cabinet will do their part by submitting the ART and the U.S.-Taiwan Investment Memorandum from January 15 for review. He urged lawmakers to fully support and expedite the passage of both documents, and welcome in a new chapter of a deeper Taiwan-U.S. economic and trade partnership.