U.S.–Taiwan reciprocal trade agreement signed
Date of publication: February 18, 2026
On February 12, 2026, the United States and Taiwan signed a comprehensive Agreement on Reciprocal Trade that represents one of the most significant bilateral trade developments in recent years. Announced in February 2026, this agreement is stated to go far beyond traditional trade liberalization to encompass economic security alignment, supply chain resilience, and strategic technology cooperation.
Still pending are any related Executive Orders and/or Federal Register Notices to provide additional details on implementation.
Scope and structure
The agreement, negotiated through the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office (TECRO), addresses tariffs, non-tariff barriers, digital trade, labor standards, environmental protections, and national security considerations. This multifaceted approach reflects the evolving nature of 21st-century trade policy, where economic and security concerns are increasingly intertwined. The Fact Sheet can be found here.
Tariff commitments
Taiwan’s commitments:
- Elimination or reduction of 99% of tariff barriers on U.S. goods
- Immediate duty-free access for many industrial and agricultural products
- Staged reductions using various categories (EIF, R2, R2.5, RH, etc.)
- Coverage includes autos, chemicals, machinery, agricultural products, beef, pork, dairy, and more.
U.S. commitments:
- Application of the higher of either the MFN rate or 15% total duty (MFN + reciprocal tariff component)
- Zero reciprocal tariff on specific agricultural products listed in Schedule 2B.
- Continuation of MFN rates while providing preferential reciprocal tariff treatment
The Tariff Schedule referenced in the Agreement can be found here.
Non-tariff barrier provisions
The agreement tackles a number of longstanding market access issues:
Automotive sector:
- Taiwan will accept U.S. vehicles meeting Federal Motor Vehicle Safety Standards without additional requirements.
- Elimination of the 75-unit per model quantitative restriction
Medical devices and pharmaceuticals:
- Taiwan will accept U.S. FDA approvals as sufficient for market authorization.
- Streamlined approval processes and transparent reimbursement procedures.
Agricultural products:
- Comprehensive provisions on beef, pork, poultry, dairy, and other products
- Acceptance of U.S. food safety standards and certification systems
- Resolution of ractopamine and other technical barriers
- Establishment of science-based pesticide MRLs
Digital trade and technology
The agreement includes robust digital trade provisions:
- Prohibition on discriminatory digital services taxes
- Facilitation of cross-border data flows
- Customs duty moratorium on electronic transmissions
- Protections against forced technology transfer
- Source code protection with appropriate regulatory exceptions.
Economic and national security alignment
The agreement also establishes unprecedented economic security cooperation:
Export controls:
- Taiwan commits to align with U.S. export control measures.
- Enhanced controls on semiconductors and advanced technologies to countries of concern
- Implementation of catch-all controls for national security purposes
Investment security:
- Comprehensive inbound and outbound investment screening
- Restrictions on technology from "covered nations"
- Phase-out of existing technology from countries of concern in critical infrastructure
Trade actions:
- Coordination mechanism when the U.S. imposes trade measures for economic or national security reasons.
- Taiwan commits to adopt measures with equivalent restrictive effect.
Labor and environmental standards
The agreement requires:
- Protection of internationally recognized labor rights
- Prohibition on importation of goods made with forced labor.
- Reforms to freedom of association and collective bargaining within five years
- Prohibition on recruitment fee charging in manufacturing and fishing sectors.
- Enhanced labor protections for migrant workers, particularly in fishing
- Strong environmental protections and enforcement
- Measures against illegal logging, IUU fishing, and wildlife trafficking
- Implementation of WTO Agreement on Fisheries Subsidies obligations
Commercial opportunities
Beyond market access improvements, the agreement facilitates:
- $44.4 billion in LNG and crude oil purchases (2025-2029)
- $15.2 billion in civil aircraft and engines purchases (2025-2029)
- $25.2 billion in power equipment and related goods purchases (2025-2029)
- Enhanced investment opportunities in critical minerals, energy, and infrastructure
- Establishment of science and industrial parks in the United States with Taiwanese investment
Intellectual property
Taiwan commits to align with key international IP treaties including:
- WIPO Copyright Treaty and Performances and Phonograms Treaty
- Patent Law Treaty and Patent Cooperation Treaty
- Madrid Protocol and Singapore Treaty on trademarks
- Geneva Act of the Hague Agreement (industrial designs)
- UPOV 1991 (plant varieties)
The agreement also requires effective civil, criminal, and border enforcement against IP infringement.
Geographical indications
The agreement includes innovative provisions to preserve U.S. market access for common cheese and meat terms. Taiwan commits to transparent procedures and cannot restrict use of terms that are customary common names, with specific protections for thirty-nine cheese terms and ten meat terms.
Enforcement and implementation
The agreement includes:
- Flexibility for parties to take action for non-compliance.
- Six-month termination provision with consultation
- Amendment procedures that preserve agreement benefits
- Potential for additional tariff measures to address unfair trade practices or national security concerns.
Considerations for trade professionals
Supply chain planning:
- Companies should evaluate opportunities to source from or through Taiwan with improved market access.
- Consider implications of economic security provisions on third country sourcing.
Regulatory compliance:
- Exporters should understand new certification and standards acceptance provisions.
- Prepare for enhanced customs cooperation and duty evasion enforcement.
Investment strategy:
- Assess opportunities in sectors with enhanced investment provisions.
- Consider implications of investment security screening requirements.
Technology transfer:
- Review policies on technology sharing considering new restrictions.
- Understand export control alignment requirements.
Conclusion
The U.S.–Taiwan Agreement on Reciprocal Trademarks a significant evolution in trade policy, combining traditional market access improvements with comprehensive economic security cooperation. For global trade professionals, this agreement provides a template for how economic and security considerations are likely to be integrated in future trade arrangements.
Companies operating in or trading with these markets should carefully review the agreement's provisions relevant to their sectors and consider both the opportunities and compliance obligations it creates. The agreement's emphasis on alignment against third countries and integration of security considerations into trade policy represents a trend that is likely to shape the global trading system in the years ahead.
For more information on how ONESOURCE Global Trade solutions can assist you in managing supply chain risk and regulatory compliance as we move into 2026, contact your Account Manager or Client Success Manager.