Economy June 16, 2026 01:05 AM

U.S.-Taiwan tax pact could gain traction after recent trade accord, AmCham says

American Chamber of Commerce in Taiwan presses Washington on a long-stalled dual taxation agreement as bilateral tariffs ease under the ART

By Caleb Monroe
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AmCham Taiwan's president said a long-pursued dual taxation agreement with the United States may see renewed momentum now that Taipei and Washington have settled a post-tariffs trade deal. The business group is sending a delegation to press officials in Washington, arguing the pact would remove a key barrier to investment and strengthen cooperation in semiconductors, electronics and defense-related technologies.

U.S.-Taiwan tax pact could gain traction after recent trade accord, AmCham says
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Key Points

  • AmCham Taiwan is leading a delegation to Washington to press for a dual taxation agreement that has been stalled in the U.S. Senate - sectors affected include trade, investment, and corporate finance.
  • The recently signed Agreement on Reciprocal Trade (ART) lowered initial U.S. tariffs on Taiwanese exports and included Taiwan commitments to increase U.S. purchases, creating a more favorable environment for bilateral negotiations - this impacts exporters and importers across manufacturing and trade sectors.
  • Taiwan's role as a major semiconductor producer and a leader in electronics and drone technology positions it as a critical partner for U.S. cooperation in R&D and co-production - this has implications for the semiconductor, defense tech, and advanced manufacturing sectors.

TAIPEI, June 16 - The head of the American Chamber of Commerce in Taiwan expressed optimism on Tuesday that a protracted effort to secure a bilateral double taxation agreement with the United States could advance now that the two sides have implemented a post-tariffs trade arrangement.

Carl Wegner, president of AmCham Taiwan, made the remarks while releasing the group's 2026 White Paper. Wegner said he will lead a delegation to Washington this week to undertake a series of in-person meetings - described as "door knock" talks - aimed at encouraging deeper bilateral trade and addressing long-standing policy impediments.

One of the central items the delegation intends to raise is the proposed dual taxation agreement. Wegner highlighted that, among the top 10 U.S. trading partners, Taiwan stands alone as the only country without such an accord. The proposal has been a focus for Taiwanese authorities as a means to eliminate double taxation and thereby reduce barriers to cross-border investment, but it has been stalled in the U.S. Senate.

"One of our key messages to Washington is talking about the dual taxation agreement. Out of the top 10 trading partners with the U.S., Taiwan is the only country without a dual taxation agreement," Wegner said.

According to Wegner, formal implementation of the agreement would expand investment possibilities for both Taiwanese and U.S. firms. He noted that there have been repeated indications the proposal is advancing, but progress has been incremental.

"We hear that it’s making progress - of course we’ve heard it’s been making progress for many years," Wegner added. "Hopefully with the ART it’s an opportunity to move this further forward in the near future," he said, referring to the Agreement on Reciprocal Trade signed earlier this year.

The ART, which lowered initial U.S. tariffs on Taiwanese exports while Taiwan committed to increasing purchases from the U.S., was cited by Wegner as improving the bilateral relationship from where it stood a year ago when U.S. President Donald Trump announced widespread tariffs on countries around the world. "It sets a good parameter, and I think people are quite happy with that opportunity," he said.

The AmCham White Paper also underscored Taiwan's strategic importance to the United States as a major semiconductor producer and a stabilizing partner in the Asia Pacific. It highlighted Taiwanese companies' strengths in electronics and their position as global leaders in developing drones and other asymmetric-warfare equipment, noting large opportunities for collaboration with U.S. partners in research and development and co-production.

AmCham Taiwan, which represents more than 500 corporate members, is marking its 75th anniversary this year. The group is using its White Paper and the Washington delegation to press for policy steps it says would promote trade and investment flows between the two economies.


Key sections covered

  • Effort to revive a long-stalled dual taxation agreement.
  • AmCham Taiwan delegation's planned talks in Washington to promote bilateral trade.
  • Link between the Agreement on Reciprocal Trade and renewed momentum for tax talks.
  • Emphasis on semiconductors, electronics, and defense-related technology collaboration.

Risks

  • The dual taxation agreement has been stalled in the U.S. Senate, creating legislative uncertainty that could delay or prevent implementation - this poses risks to cross-border investment and tax planning for multinational firms.
  • Progress on the tax accord has been characterized by repeated but slow movement; continuing delays could maintain investment frictions despite the ART - financial and trade sectors may face ongoing transactional inefficiencies.
  • While the ART reduced initial tariffs, the long-term effects on bilateral trade depend on follow-through; lack of additional policy alignment could limit the expected increase in purchases and co-production opportunities, affecting exporters and R&D collaborations.

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