The Taiwanese parliament has passed a bill that will effectively lift a ban on certain beef imports from the United States, and should allow the government to restart talks under the existing US-Taiwan trade and investment framework agreement (TIFA).

Talks under the TIFA have been suspended since 2007, and, despite various efforts since then to recommence an economic and trade cooperation dialogue under its auspices, all attempts have foundered over ractopamine, a feed additive, that is allowed in the US, but not permitted in beef imports into Taiwan.

With the US being Taiwan’s second largest trading partner, President Ma Ying-jeou has viewed the lifting of the ban on US beef imports as extremely important in looking, not only for a resumption of the TIFA talks, but also for the government longer-term aim of entering into the Trans-Pacific Partnership trade treaty, which is currently being extended under the leadership of the US.

The American Institute in Taiwan has welcomed the removal of the US beef import ban, and said that it would renew its efforts for the renewal of TIFA discussions, but there has, as yet, been no indication of when that might occur. It is likely that the US will, over a period of time, monitor how Taiwan proceeds in its implementation of the maximum allowable level for ractopamine in beef.

July 29, 2012

Source: Tax News

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