Grassley Says Taiwan Free Trade Deal Desirable, but It Could Damage Prospects With China
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said Taiwan's an attractive free trading partner but not as important to exporters as China is. “I'm for a free trade agreement with Taiwan, but I wouldn't want that to stand in the way of a phase two deal with China,” he told reporters on a conference call Aug. 17. China sees Taiwan as a breakaway province, and considers it part of China, not an independent country. Taiwan's president recently said he'd like negotiations to begin on an FTA (see 2008130010), and 161 House members have argued for opening negotiations with Taiwan (see 1912200014).
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“Assuming phase two with China is a possibility, then I wouldn't want it to interfere with that, Because China's a much bigger market than Taiwan,” he said. “On the other hand, if we couldn't negotiate with China further, then I'd say move ahead with Taiwan.”
Grassley was also asked about a recent bipartisan letter led by, among others, House Agriculture Committee Chairman Collin Peterson, D-Minn., and signed by 104 members, asking U.S. Trade Representative Robert Lighthizer and Agriculture Secretary Sonny Perdue to enforce the diary provisions in the USMCA. Grassley said he appreciates letters like this “because I think we need to keep Canada's feet to the fire,” but he noted that the USMCA just took effect six weeks ago. Canada has six months to effect changes in its regulation of dairy imports, according to the treaty. “I haven't had any evidence that they aren't going to enforce it,” he said of the USTR staff. “I expect that Lighthizer's going to be very, very forceful in enforcing it.”