The Cabinet says it is confident that the benefits Taiwan secured under a
recent Agreement on Reciprocal Trade (ART) with the United States will not be
affected by Washington's decision to launch a probe under section 301 of the
U-S Trade Act.

One of the terms of the Taiwan-U-S deal sees US tariffs lowered from 20
percent to 15 without stacking them on top of Taiwan exports that have MFN -
or most favored nation status.

The investigation is also unlikely to affect ART terms such as most favorable
treatment for Taiwanese semiconductor exports, which were obtained in
exchange for greater market access in Taiwan for American cars, pork and
beef, among other concessions.

Natixis' Chief Economist for Asia Pacific Alicia Garcia-Herrero echoes this
initial assessment.


Cabinet spokesperson Michelle Lee said, adding the government will continue
to maintain close contact with the Office of the U.S. Trade Representative
regarding the investigations.