HONG KONG, February 13. /TASS/. The United States and Taiwan have signed a mutual trade agreement limiting US duties on Taiwanese goods and granting preferential market access to the island for US industrial and agricultural exports, the Taipei Times newspaper reported.

According to the publication, the rate of US duties on Taiwanese imports will be maintained at 15%, while Taiwanese semiconductors and related goods will receive the most favorable treatment when supplied to the United States. The 15% duty rate corresponds to the rates applied to goods from Washington’s major trading partners, such as Japan, South Korea, and the EU, the newspaper indicated.

Additionally, another 2,072 categories of Taiwanese products will be exempt from reciprocal tariffs and will only be subject to duties in the US under the Most Favored Nation regime. This includes 261 categories of agricultural products, such as Phalaenopsis orchids, tea, starch, coffee, fruit juices, mangoes and several others. These 261 categories account for 42% of the value of Taiwanese agricultural exports to the US, amounting to $374 million annually.

Taiwan, for its part, has agreed to completely eliminate or reduce by 99% tariff barriers on imports of industrial and agricultural products from the US. This list includes automobiles and auto parts, chemicals, seafood, medical goods, wheat, beef, dairy products, pork, lamb, ketchup and peanuts.

This agreement will now be submitted to the legislative body of Taiwan for review and approval.

Taiwan has been governed by its local administration since 1949 when the Kuomintang’s remaining forces headed by Chiang Kai-shek (1887-1975) were defeated in the Chinese Civil War and took refuge on the island. Taiwan has preserved the flag and several other symbols of the Republic of China that had existed before the Communists took over the mainland. According to China’s official position, which is supported by most countries, including Russia, the Island of Taiwan is one of China’s provinces.