The United States and Taiwan have concluded negotiations on a trade agreement to deepen economic ties amid growing tensions between Washington and Beijing.

"This accomplishment represents an important step forward in strengthening the US-Taiwan economic relationship," US Trade Representative (USTR) Katherine Tai said in a statement on Thursday.

The US-Taiwan Initiative on 21st-Century Trade looks to boost trade by streamlining customs checks, improving regulatory procedures, and establishing anticorruption measures between the United States and the self-governing island of Taiwan, which China has long claimed as part of its territory.

While the United States and Taiwan do not have official diplomatic relations, they do maintain unofficial ties through the de facto US embassy in the country, the American Institute in Taiwan.

The first agreement under the initiative will allow American businesses "to bring more products to Taiwan and Taiwanese customers, while creating more transparent and streamlined regulatory procedures that can facilitate investment and economic opportunities in both markets, particularly for small- and medium-sized enterprises," the statement said.

The agreement, which still needs to be signed by the two sides, will "deepen the trading partnership and enhance US-Taiwan trade flows in order to promote innovation and inclusive economic growth for workers and businesses," USTR said.

"We look forward to continuing these negotiations and finalizing a robust and high-standard trade agreement that tackles pressing 21st-century economic challenges," Tai said.

Source: Legit