U.S. President Joe Biden signed into law a bill called the “United States-Taiwan Initiative on 21st-Century Trade First Agreement Implementation Act '' on Monday. This approves the initial trade agreement that was signed between the two countries last month.
According to a White House statement, President Biden says the bill H.R. 4004, will institutionalize requirements on the negotiations between the two countries.
The bill requires the president to first report to congress explaining how the agreement will promote both US-Taiwan trade relations, and the interests of American workers, consumers, enterprises and farmers.
The initial agreement was signed on June 1 following a year of negotiations. U.S. Trade Representative Sarah Bianchi released a statement via the American Institute in Taiwan (AIT) affirming the efforts from both sides. She says that the agreement is intended to strengthen and deepen the economic and trade relationship between the U.S. and Taiwan.
The AIT also highlights several details in the agreement, including customs administration and trade facilitation, regulatory practices, and anti-corruption commitments.
Although the implementation of the agreement does not require Congressional approval, Senator Ron Wyden (D-OR), chairman of the Senate’s Finance Committee, and Congressman Jason Smith (R-MO), chairman of the House Ways and Means Committee, proposed the bicameral and bipartisan bill to bind the agreement under congressional approval, providing legislative oversight and support for enforcement.