Trade and Investment Framework Agreement

A Trade and Investment Framework Agreement (TIFA) is a trade pact which establishes a framework for expanding trade and resolving outstanding disputes between countries.

TIFAs are often seen as an important step towards establishing Free Trade Agreements.

The United States and ASEAN concluded the U.S.-ASEAN Trade and Investment Arrangement (TIFA) in 2006 and since then have been working to build U.S.-ASEAN trade and investment ties as well as promote ASEAN regional economic integration. The United States intensified its work under the TIFA in 2009, presenting ASEAN senior officials a number of ambitious proposals to be pursued under the TIFA work plan. These proposed initiatives seek to achieve concrete results in a variety of areas including trade facilitation, logistics, digital economy, trade finance, and trade and environment. The 10-member countries of ASEAN together comprise the fourth largest export market of the United States and its fifth largest two-way trading partner. ASEAN countries include Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam. Trade between the U.S. and ASEAN continues to grow steadily, and two-way goods trade totaled $177 billion in 2008. With robust economies and a total population of about 550 million, the 10-member countries of the ASEAN market provide significant potential opportunities for U.S. companies.

The U.S. goods trade deficit with Taiwan was $15.2 billion in 2006, an increase of $2.4 billion from $12.8 billion in 2005. U.S. goods exports in 2006 were $23.0 billion, up 4.3 percent from the previous year. Corresponding U.S. imports from Taiwan were $38.2 billion, up 9.7 percent. Taiwan is as of June 2015, the 11th largest export market for U.S. goods. U.S. exports of private commercial services (excluding military and government) to Taiwan were $6.4 billion in 2005 (latest data available), and U.S. imports were $6.4 billion. Sales of services in Taiwan by majority U.S.-owned affiliates were $10.2 billion in 2004 (latest data available), while sales of services in the United States by majority Taiwan-owned firms were $475 million. The stock of U.S. foreign direct investment (FDI) in Taiwan was $13.4 billion in 2005. U.S. FDI in Taiwan is concentrated largely in the finance, manufacturing and wholesale trade sectors. The United States and Taiwan continued to work together to enhance economic cooperation through bilateral Trade and Investment Framework Agreement (TIFA) process. The TIFA, which was established in 1994, is an important mechanism for both parties to resolve bilateral trade issues and to address the concerns of the U.S. business community. The United States and Taiwan held a productive meeting of the fifth meeting of the TIFA Joint Council in Taipei, May 25–26, 2006, covering issues related to agricultural trade, intellectual property rights, pharmaceuticals, government procurement and investment, as well as other areas.

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