United States-Taiwan Initiative on 21st-Century Trade First Agreement Implementation Act
Aug 7, 2023
Aug 7, 2023
Summary
Approves the first trade agreement under the U.S.-Taiwan Initiative on 21st-Century Trade to make economic ties with Taiwan stronger.
What problem does this solve?
The President cannot make binding trade deals without approval from Congress. This law gives that approval, making the trade agreement with Taiwan official and long-lasting.
What does this law do?
Approves the trade agreement with Taiwan
Gives official congressional approval to the first trade agreement made under the United States-Taiwan Initiative on 21st-Century Trade, which was completed on June 1, 2023.
Sets rules for future trade agreements
Requires the President to share negotiating texts with Congress and get its approval before any future trade agreements with Taiwan can take effect. This ensures Congress stays involved in the process.
Establishes conditions for the agreement to start
Requires the President to confirm to Congress that Taiwan has taken the necessary steps to follow the agreement's rules. The agreement can only begin 30 days after this confirmation is sent.
Keeps U.S. law supreme
States that no part of the trade agreement can override any U.S. law. If there is a conflict between the agreement and a U.S. law, the U.S. law will always win.
Prevents private lawsuits
Specifies that only the U.S. government, not private citizens or companies, can bring a lawsuit based on the terms of the trade agreement.
Excludes agreement from EV tax credit rules
Clarifies that this trade agreement does not count as a 'free trade agreement' for the purpose of qualifying for certain electric vehicle tax credits under the Internal Revenue Code.
Who does this affect?
- U.S. businesses and workers
- Taiwanese businesses and workers
- U.S. consumers
What is the real world impact?
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Strengthens the U.S.-Taiwan relationship
Builds a stronger economic and trade partnership with Taiwan, which the U.S. considers a key democratic partner in the Indo-Pacific region. This helps both sides benefit from increased trade and cooperation.
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Asserts congressional authority over trade
Reinforces that Congress has the final say on international trade deals, as stated in the Constitution. It sets up a process where the President must work with Congress to make this and future agreements happen.
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Counters geopolitical rivals
Deepens the alliance with Taiwan, which can be seen as a strategic move to balance the influence of other major powers in the Indo-Pacific region. A strong economic partnership can also increase regional stability.
When does this start?
The trade agreement can go into effect no earlier than 30 days after the President confirms to Congress that Taiwan is ready to comply with its terms.
Report on implementation
Within 180 days after the agreement starts, the U.S. Trade Representative must give Congress a report on how the agreement is being put into practice.
Public text for future agreements
For any future agreements, the President must publish the full text online for the public to see at least 60 days before the agreement is signed.