According to analysts, an economic agreement compared to the new IPEF would demonstrate the United States’ dedication to self-governing democracy
Following Taiwan’s exclusion from US President Joe Biden’s economic framework designed to counter Chinese influence, the two countries are presumably negotiating to improve economic cooperation in areas such as trade, agricultural production, and supply chains.
According to Bloomberg, who first reported the agreement, the tentative agreement would be comparable to the US-led Indo-Pacific Economic Framework (IPEF), of the kind that Biden initiated last week in Japan.
The framework seeks to advance common standards in four key areas – supply-chain resilience, clean energy and infrastructure, taxation and anti-corruption, and fair trade – but does not broaden market access as a traditional free trade deal would.
“Political significance is the most important aspect of all of this.” “Any move by the United States to strengthen its involvement with Taiwan, even if it is framed as informal, is sending out signals, and that signal is that the United States and Taiwan are aiming to increase their de-facto relationship,” Marro told Al Jazeera.
“Both Taiwan and the United States will be able to send China stronger messages about deterrence as a result of this.”