Biden signs into law 1st US trade agreement with Taiwan

ISTANBUL

US President Joe Biden has signed into law Washington's first bilateral trade agreement with Taiwan, the White House announced.

A brief statement released on Monday said Biden signed the "United States-Taiwan Initiative on 21st-Century Trade First Agreement Implementation Act," a move likely to trigger a backlash from Beijing.

The two sides approved the deal on June 1 after the American Institute in Taiwan (AIT) and Taipei Economic and Cultural Representative Office in the US (TECRO) reached an agreement.

Biden signed the act into law days after the US Senate passed the legislation.

The deal also "establishes other requirements with respect to future agreements," noted the White House statement.

China considers Taiwan to be its "breakaway province" while Taipei has insisted on its independence.

Beijing has been demanding the US end its dealings with the island nation, home to around 24 million.

While the US has maintained that it respects its long-standing one-China policy, it has increased its traffic to Taipei with lawmakers and former officials paying regular trips to Taiwan.

According to market watchdog Statista, the total value of US trade with Taiwan in 2022 amounted to $136 billion. Defense exports of around $19 billion to Taiwan from the US are still pending.