Taiwan loosened its restrictions on the import of American beef and pork as the island attempts to cement ties with Washington.
Taiwan has been working on sealing a free trade agreement with the US, its most important international support, but the US government has raised its issue about barriers to import of American beef and pork. Taiwan noted the restriction was based on health grounds, especially with issues about mad cow disease and additives.
According to President Tsai Ing-wen, her government aimed to allow the import of US pork containing ractopamine, an additive that boosts leanness, and allow in American beef more than 30 months old.
“The decision is in line with the country’s overall interests and the goals of the nation’s strategic development. It’s also a decision that could boost Taiwan-U.S. ties,” she said.
“If we can take one crucial step forward on the issue of U.S. pork and beef, it will be an important start for Taiwan-U.S. economic cooperation at all fronts.”
Responding to the easing of restrictions, US State Department spokeswoman Morgan Ortagus said the US welcomed Taiwan’s decision and eliminating “these long-standing barriers” can lead to greater economic and trade cooperation.
“We look forward to the timely implementation of these actions, which will provide greater access for U.S. farmers to one of East Asia’s most vibrant markets, and for Taiwan consumers to high-quality U.S. agricultural products,” she said.
Tsai explained that while a bilateral trade agreement with the US may not happen right away, she is optimistic about the issue.
The US is an “extremely important” trade partner for Taiwan, and she noted that the decision is not associated with the upcoming US presidential election.
Council of Agriculture Minister Chen Chi-chung announced that the new pork and beef rules will be effective on Jan. 1.
Taiwan's economy
Taiwan shows strong economic performance amid the coronavirus crisis, according to an economist from research house Capital Economics.
Gareth Leather, a senior Asia economist, commended Taiwan for how it managed the coronavirus outbreak and said its economy has held up better than most Asian countries.
Despite being near to China, Taiwan has recorded just 447 coronavirus cases and seven deaths in a population of 24 million people. The world recognized Taiwan’s success in curbing the spread of the coronavirus.
Capital Economics reported that industrial production increased by 1.5% in May from a year ago. This was lower than the 4.2% on-year growth in April. “It was still much stronger than most other countries in Asia,” wrote Leather.
South Korea and Singapore reported negative growth for industrial production in May.
“A key reason for the strong performance was that Taiwan never had to lock down its economy, so manufacturing plants have continued to run as normal,” Leather stressed. Capital Economics is forecasting a 2% decline in Taiwan’s 2020 GDP.
Leather emphasized the growing electronics industry in Taiwan. “Another important factor has been strong demand for electronics products, which we think is being boosted by an increase in investment in 5G infrastructure and demand for home-working equipment,” Leather said.
