TAIPEI (TVBS News) — In a recent interview with Commentator Wenchi Yu in the TVBS Meeting Room, Wendy Cutler, vice president of Asia Society Policy Institute and former acting deputy of the U.S. Trade Representative, shared her insights on globalization and the "U.S.-Taiwan Initiative on 21st-Century Trade."
When discussing trade between the U.S. and China, Cutler highlighted that trade in advanced technologies is declining, and global businesses are adopting selective decoupling or de-risking strategies.
Cutler added, "Cost and efficiency […] as the driving factors don't make a lot of sense in many sectors, particularly those linked to national security. We want to trade, and we want to have a commercial relationship with China. However, there are certain sectors that are off-limits."
To further enhance the U.S.-Taiwan economic partnership beyond defense and military matters, the U.S.-Taiwan Initiative on 21st-Century Trade was launched last summer.
According to Cutler, the initiative is a critical development as it seeks to establish rules and cooperation mechanisms on various issues, including traditional trade matters. Cutler said: "My understanding is that there's really good progress being made."
Taiwan applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), an international trade bloc, in September 2021. However, China has also tried to join.
Cutler speculates that the 11 member countries of the CPTPP may face a stalemate as they attempt to move forward and may deviate from the precedent set by the World Trade Organization.
