World News | Facing pressure from China, US signs modest trade deal with Taiwan to show support

WASHINGTON, May 19 (AP) — The United States reached a modest trade deal with Taiwan, a sign of Washington’s support for Taiwan’s democracy as it comes under increasing pressure from China.

U.S. Trade Representative Katherine Tai said the first deal under the U.S.-Taiwan 21st Century Trade Initiative was expected to lay the groundwork for a larger agreement later – “a strong, high-standards trade agreement”.

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The moves announced Thursday will, among other things, reduce customs red tape and reduce the wait time for U.S. businesses to ship products to Taiwan. It also requires the United States and Taiwan to take steps to combat bribery and other forms of corruption, and to encourage more trade involving small and medium-sized enterprises.

The agreement does not require approval by the U.S. Congress. But there is broad bipartisan support in Washington for Taiwan, an island of 23 million that split from China when the Communists took over the mainland in 1949 and has since grown into a thriving democracy.

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Beijing considers Taiwan a rebellious Chinese province and has long demanded its reunification.

Relations between the United States and China — the world’s two largest economies — have deteriorated in recent years. The United States has accused China of predatory economic practices and criticized Beijing for cracking down on dissent in Hong Kong and the Muslim-majority region of Xinjiang, as well as bullying its neighbors, including Taiwan, over territorial claims.

Taiwan is the world’s leading producer of computer chips. The US bought $105 billion worth of goods and services from Taiwan last year, making it the 10th largest source of US imports. The US exported nearly US$55 billion to Taiwan, making it the 15th largest overseas market for the US. (Associated Press)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)