The announcement by the US trade envoy’s office formalises an agreement unveiled in January to cut US tariffs on many Taiwanese exports from 20% to 15%, and boost investment in the US tech industry.

Thursday’s trade pact, which needs to be reviewed by Taiwan’s legislature, “will eliminate tariff and non-tariff barriers facing US exports to Taiwan,” said US trade representative (USTR) Jamieson Greer.

“This agreement also builds on our longstanding economic and trade relationship with Taiwan and will significantly enhance the resilience of our supply chains, particularly in high-technology sectors,” he added in a statement.

Taiwan plans to facilitate a “long-term increase in its purchases of important US goods” through 2029, according to a fact sheet released by the USTR’s office.

These include US$44.4 billion in liquefied natural gas and crude oil, US$15.2 billion in civil aircraft and engines, as well as US$25.2 billion in power equipment, power grids and other products.

The fact sheet added that Washington has committed to reducing its tariffs on Taiwanese goods given Taipei’s commitments towards “significant steps to advance a stronger and more reciprocal trade relationship”.

Among other moves, Taiwan committed as well to reducing most tariff barriers and provide preferential market access for US industrial and agriculture exports.