Embassy of the Republic of China (Taiwan)
P.O. Box 1229, Majuro, Republic of the Marshall Islands MH96960
Tel: (+692)2474141, 2474142；Fax: (+692)2474143 E-Mail: mhl@mofa.gov.tw
January 15, 2025
Press Release: The Economic Cooperation Agreement between the Government of the ROC (Taiwan) and the Government of the RMI (The ECA) enters into effect
The governments of the Republic of China (Taiwan) and the Republic of the Marshall Islands have agreed that the Economic Cooperation Agreement between the Government of the ROC (Taiwan) and the Government of the RMI (The ECA) officially entered into effect today (January 15, 2025). The ECA was signed on October 25, 2019. Both parties completed the exchange of Notes for the tariff reduction lists attached to the agreement on October 5, 2022. And then Taiwan’s Executive Yuan approved the draft amendment to the “Customs Import Tariff Schedule.” The key points of the amendment include fulfilling Taiwan’s tariff reduction commitments under the ECA, aligning with relevant World Trade Organization (WTO) regulations, and accommodating government organizational reforms. The draft amendment was submitted to the Legislative Yuan of ROC (Taiwan) for review, which was subsequently approved on July 12, 2024.
The amendment aforementioned abolishes import tariffs on 3,043 items originating from the Marshall Islands, including agricultural and industrial products such as fishery products and coconuts, demonstrating Taiwan’s adherence to WTO norms and its tariff reduction commitments. Meanwhile, the Marshall Islands government has granted reciprocal treatment to 267 items imported from Taiwan, including synthetic textiles and materials for fishing tools.
From 2023 to 2024, the total bilateral trade value between Taiwan and the Marshall Islands amounted to approximately USD 375.18 million. The Marshall Islands primarily imports food, ships and floating structures, electrical machinery and equipment, and related parts and accessories from abroad. Its main exports include fish, crustaceans, mollusks, and other aquatic products. The country's primary industries include small-scale farming and fishery processing. The Marshall Islands government is seeking foreign investments in tourism, fisheries, coconut products, and fruit and vegetable processing, with distant-water fisheries showing the greatest development potential.
The Marshall Islands has signed economic cooperation and trade agreements with countries in the South Pacific region, the United States, and Europe. Its exports to Canada and Japan also benefit from the Generalized System of Preference (GSP). Thus, the Marshall Islands can serve as a hub for foreign enterprises expanding into these regions. Leveraging its preferential measures under agreements and geographical advantages can enhance the competitiveness of exports to markets in the South Pacific, Europe, the U.S., Japan, and Canada.
The Republic of the Marshall Islands is the first Pacific ally to sign an economic cooperation agreement with Taiwan. The future scope of cooperation between the two countries will include trade, services, investment, technology, personnel exchanges, and tourism. The ECA holds symbolic significance for Taiwan’s efforts to cultivate economic and cooperative relationships in the Pacific region.
With the ECA coming into effect, the markets of both countries will further open to each other. The bilateral economic and trade partnership enters a new phase, substantially deepening economic and trade connections. This will improve the welfare of people in both nations, strengthen the friendship between Taiwan and the Marshall Islands, and contribute to the two countries’ deeper economic integration and practical relations within the Pacific region.
