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Taiwan's Resumed Beef Ban To Affect TIFA Talks With US

by Mary Swire, Tax-News.com, Hong Kong

08 January 2010

Taiwan’s parliament has re-imposed a ban on imports of certain US beef and beef products, and thereby put into doubt the resumption of any negotiations within the trade and investment framework agreement (TIFA) with the US.

It had been thought that the BSE-related beef dispute between Taiwan and the US was resolved in October by means of a bilateral agreement, signed by both sides.

At that time it was concluded in Taiwan that all US beef products were safe, with the agreement to that effect entering into force on November 2, 2009.

However, on January 5 this year, Taiwan’s parliament passed bills which reimposed a ban on imports of specific beef products from countries that had BSE experiences in the past decade, and also called for a public referendum on beef imports. That means a further ban on imports of US ground beef, beef offal and other beef parts.

While the Taiwanese government is obviously hoping to minimise the impact of the new parliamentary action, it is thought to be unlikely that TIFA talks that had been planned between the two governments can be held while the beef dispute continues.

In fact, a joint statement issued by the Office of the United States Trade Representative and the US Department of Agriculture stated that:

"The decision by Taiwan authorities to place domestic politics over science raises serious concerns. This action will also undermine Taiwan's credibility as a responsible trading partner and will make it more challenging for us to conclude future agreements to expand and strengthen bilateral trade and economic ties.”

The US-Taiwan Business Council had previously welcomed the resolution of the issue of Taiwan market access for US beef, which, it said, had long been front and centre in the US-Taiwan trade relationship, and lay at the heart of the decision to freeze the long-standing TIFA talks several years ago - bringing almost all significant US-Taiwan economic dialogue to a halt.

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