Taiwan and US Sign Agreement to Strengthen Food Security and Agricultural Trade

On June 3, 2024, Taiwan and the United States signed a memorandum of understanding (MOU) on food security cooperation. The agreement aims to ensure Taiwan's stable and sustained supply of grains while promoting bilateral agricultural trade and food security between the two nations.

Why this matters: This agreement has significant implications for global food security and trade, as it sets a precedent for bilateral cooperation on critical issues. The success of this partnership could have far-reaching consequences for other nations seeking to strengthen their food security and agricultural trade relationships.

The signing ceremony was presided over by Johnson Chiang, Director-General of the Taipei Economic and Cultural Representative Office in the U.S., and Ingrid Larson, Managing Director of the American Institute in Taiwan. The MOU establishes a bilateral mechanism and platform for dialogue and future exchange involving the public and private sectors.

The agreement focuses on strategies to strengthen food security and related trade practices, ensuring Taiwan can obtain a stable supply of grains from the U.S. The U.S. is one of Taiwan's major exporters of grains, accounting for 40% of annual domestic grain imports. In 2023, the U.S. exported three million metric tons of soybeans, wheat, and corn to Taiwan.

Food security has become a critical issue for net food-importing countries like Taiwan, particularly in the face of climate change. Global economic conditions and regional military conflicts can further exacerbate food security risks, making sustainable agricultural technology and agricultural disaster relief programs essential for strengthening domestic food production.

The Ministry of Agriculture (MOA) has previously conducted talks about food security with the U.S. through events such as APEC and other international organizations. The MOU builds on these efforts by establishing a formal framework for cooperation and dialogue.

The signing of the MOU took place during a visit by a bipartisan Congressional delegation to Taiwan, led by House Foreign Affairs Committee Chairman Michael McCaul. The delegation met with Taiwanese authorities, including the newly inaugurated President Lai Ching-te, to discuss regional security, trade, and investment, and to explore new areas of collaboration between the U.S. and Taiwan.

Rep. Jimmy Panetta, a member of the delegation, emphasized the importance of the visit, stating, "I was honored to be invited by Chairman McCaul and a part of this select bipartisan delegation of congressional members that traveled to Taiwan to congratulate the newly inaugurated President Lai and ensure him of the United States Congress' commitment to Taiwan's continued peace and prosperity."

Chairman McCaul also highlighted the significance of the U.S.-Taiwan relationship, saying, "Taiwan is a thriving democracy. The U.S. will continue to stand by our steadfast partner and work to maintain the status quo across the Taiwan Strait. I look forward to meeting with Taiwan officials to better understand what America can do to preserve peace in Asia and build upon our shared democratic values."

The bipartisan delegation included Subcommittee on the Indo-Pacific Chairwoman Young Kim, Subcommittee on Middle East, North Africa, and Central Asia Chairman Joe Wilson, House Armed Services member Rep. Chrissy Houlahan, and Congressional Taiwan Caucus Co-Chair Rep. Andy Barr. They met with members of the Legislative Yuan, diplomatic and defense officials, and leaders from the semiconductor industry.

Prior to the visit, the Chinese Communist Party (CCP) warned against congressional delegations visiting Taiwan and conducted demonstrative military drills in the Taiwan Strait. Despite these warnings, the U.S. delegation proceeded with their visit, underscoring the commitment to support Taiwan.

Rep. Panetta and a bipartisan coalition in Congress recently passed into law critical security aid for America's democratic allies, including $8 billion to bolster defense capabilities for Taiwan and the Indo-Pacific region. Rep. Panetta also co-leads the bipartisan Taiwan Democracy Defense Lend-Lease Act, which authorizes the President to lend or lease defense supplies to Taiwan in the case of preemptive aggression by the CCP.

This MOU marks a significant step in strengthening agricultural trade and food security cooperation between Taiwan and the U.S., ensuring a stable supply of grains for Taiwan and promoting bilateral trade.

Key Takeaways

• Taiwan and the US sign MOU on food security cooperation to ensure stable grain supply.
• MOU promotes bilateral agricultural trade and food security between the two nations.
• US is Taiwan's major grain exporter, accounting for 40% of annual imports.
• Food security is critical for Taiwan due to climate change and regional conflicts.
• MOU sets a precedent for bilateral cooperation on critical global issues.