[International] US Experts: AI Boosts Taiwan's Exports to the US, Progress on Avoiding Double Taxation Expected Next Year
bellala 央廣4h ago
The economic and trade relationship between Taiwan and the United States is becoming increasingly close. US experts pointed out on the 17th that chips and related components imported by the US from Taiwan have grown significantly in recent years, accounting for about 70% of US imports from Taiwan. With the help of artificial intelligence and specific industries, Taiwan's exports to the US have surged. Some experts also optimistically predict that progress on avoiding double taxation between the US and Taiwan is expected next year.
The Global Taiwan Institute (GTI), a Washington-based think tank, held a seminar on the 17th titled "The Benefits and Challenges of Economic Engagement: Major Issues in the US-Taiwan Trade Relationship." One session was moderated by Riley Walters, a senior fellow at the Hudson Institute, with former Deputy Assistant US Trade Representative Fred Fischer and former Deputy Assistant Secretary of Commerce Pamela Phan as panelists.
Fischer stated that Taiwan is the 5th largest source of imports for the US, and US imports from Taiwan have increased significantly with the help of AI and specific industries.
He pointed out that by 2026, about 70% of US imports from Taiwan will be chips and directly related components, "a significant increase" from only 20% in 2020.
Regarding economic cooperation between the US and Taiwan, Phan said that many areas have been identified as priority cooperation items, including semiconductors and advanced electronic products; AI and high-performance computing infrastructure; supply chain resilience beyond semiconductors and AI, including automotive components, aircraft parts, timber, etc.; bilateral investment between the US and Taiwan; and export control measures.
At the same time, Phan also pointed out complex issues facing US-Taiwan economic cooperation, including fluctuations in US tariff and trade policies; concerns that as the US government focuses on bringing production back to the US, it might weaken Taiwan's "silicon shield" protection or shift the strategic influence that Taiwan traditionally believes it possesses. Additionally, regarding energy reliability, Taiwan relies on imports for over 90% of its energy, and power shortages could jeopardize its technological and industrial competitiveness.
Since President Donald Trump's return to the White House, tariff measures have been continuously implemented to reduce the US trade deficit and encourage manufacturing to return to the US. Early this year, Taiwan and the US signed the Agreement on Reciprocal Trade (ART) and established a high-tech supply chain cooperation mechanism through a Memorandum of Understanding (MOU) on investment cooperation.
Furthermore, despite the increasingly close economic and trade relationship between Taiwan and the US, a double taxation avoidance agreement has not yet been signed. Fischer believes that considering the midterm elections in the US in November, progress is unlikely this year.
Walters optimistically predicts that once the Taiwan legislature reviews and approves the US-Taiwan Agreement on Reciprocal Trade, and after the US midterm elections in 2026 and Taiwan's local elections conclude, progress on the US-Taiwan double taxation avoidance agreement may be made next year.
The US House of Representatives has passed the "US-Taiwan Fast Double Taxation Relief Act." Minister of Economic Affairs Kung Ming-hsin pointed out during his visit to the US in May that the bill is still awaiting scheduling in the Senate.
If the bill is subsequently passed by the Senate, it will be sent to the White House for the US President's signature, and then international instruments will be exchanged between Taiwan and the US to ensure mutual and equal tax relief before it takes effect. (Editor: Liu Hsiang-hua)
Source Link: https://www.rti.org.tw/news?uid=3&pid=215270
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