Statement by Principal Deputy Press Secretary Speakes on Trade Between Taiwan and the United States

August 11, 1986

The President announced today that Taiwan has agreed to eliminate, effective October 1, 1986, the duty-paying schedule currently being used to calculate customs duties. In addition, all products of U.S. origin imported into Taiwan will be immediately removed from the duty-paying schedule and will enjoy the benefits of transaction value prior to the formal elimination of the duty-paying list. This action follows a week of intensive consultations with Taiwan in Washington under the auspices of the American Institute in Taiwan. On August 1 the President determined under section 301 of the Trade Act of 1974 that Taiwan's use of a duty-paying system to calculate customs duties was a violation of a U.S.-Taiwanese trade agreement and directed the U.S. Trade Representative to propose appropriate retaliatory measures.

Once the duty-paying list has been formally eliminated on October 1, 1986, the U.S. Trade Representative will terminate the pending section 301 unfair trade practices case on customs valuations against Taiwan. The President commends Taiwan for its cooperation and continued commitment to fair and open trade. Taiwan's elimination of the duty-paying list will create greater certainty for U.S. exporters, who will now be able to plan their export programs with the knowledge that their shipments will be valued on the basis of the international standard of transaction value. This is yet another positive step in the administration's efforts to eliminate unfair trade barriers to U.S. goods and services.