House Committee Passes Legislation Affirming US-Taiwan Trade Relationship

The House Ways and Means Committee has voted unanimously to pass bipartisan legislation confirming support for the Biden administration newly negotiated trade agreement (Initial Agreement) with Taiwan.

• The Committee also voted to necessitate Congressional oversight on any such future trade agreements with Taiwan, "...to make sure the Administration does not ignore the constitutionally established role of Congress in international trade."
• Chairman Jason Smith (R-MO) said: "What's particularly encouraging about this legislation is that it represents a bipartisan effort to reassert Congress's constitutional authority... and that the President does not have the authority to bind the United States in trade agreements without congressional involvement and approval."
• The move may be a significant blow to the Biden administration's trade strategy which has eschewed free trade agreements in favour of lesser arrangements like the Critical Minerals Agreement signed with Japan in March which provides Japanese firms access to Inflation Reduction Act funds without requiring Congressional approval.
• This tactic has been criticised by lawmakers from both parties, including from Ways and Means, whose leadership said after the Japan deal: “Agreements should be developed transparently and made available to the public for meaningful review well before signing, not after the ink is already dry.”