Biden Signs Taiwan Trade, with Caveats

President Biden signed into law a measure implementing the initial deal negotiated under the US-Taiwan Initiative on 21st-Century Trade First Agreement, even while raising concerns about the constitutionality of the law.

The President cautioned Congress that he does not intend to follow all of the requirements of the new law relating to the sharing of negotiating texts.

Since launching the negotiations, the Administration has taken the position that Congressional approval would not be required, because the initiative is not a traditional, comprehensive free trade agreement.

Congress, on the other hand, insisted the agreement requires its approval. Otherwise, any deal reached could be negated by a future Administration. The House and Senate approved the implementation legislation with broad bipartisan support.

In his signing statement, President Biden continued to insist Congressional approval is not needed and that the implementation law raises constitutional concerns by setting requirement for additional trade agreements with Taiwan.

“Section 7 of the Act includes requirements for the negotiation of certain further trade agreements with Taiwan that raise constitutional concerns,” the President said. “Section 7(b) of the Act would require the United States Trade Representative (USTR) to provide negotiating texts to congressional committees in the midst of negotiations with a foreign partner, and section 7(c) of the Act would preclude the USTR from transmitting United States-proposed texts to Taiwan while the Congress is reviewing them.”

“In cases where the requirements of section 7 of the Act would impermissibly infringe upon my constitutional authority to negotiate with a foreign partner, my Administration will treat them as non-binding,” he asserted.