Taiwan's Cabinet has unveiled a new "Taiwan Model" strategy to finalize a trade deal with the US and lower the current 20% reciprocal tariff. The plan involves exporting Taiwan's industrial cluster model and training American workers, though some opposition lawmakers say it could cause a technology drain.
00:00Taiwan cabinet officials say U.S.-Taiwan trade talks are in their final stages and revealed a so-called Taiwan model of U.S. investments as a bargaining chip.
00:09They revealed the concept here in the legislature while taking comments from lawmakers.
00:14Officials also reiterated Taiwan's four main goals in the trade talks, and those are lowering Taiwan's reciprocal tariff from its current 20%,
00:22preventing the stacking of any additional tariffs on top of that 20%,
00:26avoiding special tariffs on chips, known as Section 232, and gaining favorable investment conditions,
00:32especially avoiding being taxed in both countries.
00:35And in return, they're offering the so-called Taiwan model of investment.
00:39They describe that as being private sector-led investment, rather than government-led investment like Japan and South Korea have recently done,
00:46the creation of one-stop industrial clusters in the U.S., similar to Taiwan's science parks,
00:50workforce training for U.S. chip workers, and government support, including credit guarantees and financial assistance to Taiwanese companies in the U.S.
00:59There was some pushback from opposition lawmakers to the plan, especially the workforce training.
01:04Some worried that this could cause a kind of technology drain and damage Taiwan's lead in semiconductors.
01:11Officials also did a lot of research on the U.S.
01:41denied rumors that Taiwan would pledge $400 billion US dollars in investment as part of the
01:46deal, but didn't give any concrete numbers as to how much they would be willing to invest.
01:51But with the final terms of the deal still under wraps, anxiety over the future of Taiwan's most
01:56important industry remains high. Joseph Wu, Chris Ma, and Chris Gorin in Taipei for Taiwan Plus.
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