Taiwan and the United States are to hold their first meeting under a new trade framework on Monday, talks that will add to tensions with Beijing, which claims the self-ruled island as its own.

Taipei's top trade negotiator John Deng will meet deputy US trade representative Sarah Bianchi to discuss the US-Taiwan Initiative on 21st Century Trade, according to Bianchi's office.

The talks will be held virtually after Deng contracted Covid-19 in Mexico, where he is isolating in a hotel, Hsiao Bi-khim, Taipei's representative in the US, told the island's semi-official Central News Agency on Sunday.

Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

Trade negotiator John Deng has Covid-19 and is isolating at a hotel in Mexico. Photo: Handout alt=Trade negotiator John Deng has Covid-19 and is isolating at a hotel in Mexico. Photo: Handout>

Deng tested positive on arrival to Mexico on June 18 after he had visited Switzerland and England on a trip promoting trade and economic cooperation, and has relatively mild symptoms, his office said.

He has also had to miss SelectUSA, an annual investment summit being held in Maryland from Sunday to Wednesday, where he was supposed to lead a 265-strong Taiwanese business delegation. He was to meet Bianchi on the sidelines of the event.

The talks are likely to anger Beijing, which has voiced its opposition to the new trade initiative and any official contact between Taiwan and the US, which do not have official diplomatic ties.

Deputy US trade representative Sarah Bianchi will hold virtual talks on the new initiative. Photo: Handout alt=Deputy US trade representative Sarah Bianchi will hold virtual talks on the new initiative. Photo: Handout>

Taipei and Washington announced the initiative on June 1 - soon after Taiwan was excluded from the US-led Indo-Pacific Economic Framework signed by 12 Asia-Pacific nations and aimed at countering Beijing's growing influence. Taipei says it will continue to seek to join the IPEF.

Analysts have said the island was likely left out of the group to draw countries that might have been concerned about a backlash from Beijing if Taipei was a member. The new trade initiative has been seen as an alternative to the IPEF for Taiwan.

"By setting up more economic and trade frameworks with Taiwan, the US is hoping to help Taiwan reduce its heavy economic reliance on mainland China," said Wang Kung-yi, head of the Taiwan International Strategic Study Society, a Taipei think tank.

In addition to the newly agreed initiative, the Trade and Investment Framework Agreement has long been in place to discuss the removal of trade and investment barriers, while the US-Taiwan Economic Prosperity Partnership Dialogue was launched in November 2020 to discuss supply chain resilience, countering economic coercion from Beijing, and closer cooperation in hi-tech areas.

In December last year, the US Department of Commerce also announced the launch of the Technology Trade and Investment Collaboration framework with Taiwan to address commercial and supply chain issues.

According to the US Trade Representative Office, the new initiative will focus on trade facilitation, regulatory practices, standards, state-owned enterprises, non-market policies and practices, as well as anti-corruption.

Other areas for negotiation include small and medium-sized enterprises in trade, digital trade, worker-centric trade, cooperation in agriculture and climate action.

Trade negotiator Deng told CNA last week that Taipei's ultimate goal was to sign a trade cooperation agreement with the US, but he noted that the new initiative did not involve any tariff negotiations.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2022 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2022. South China Morning Post Publishers Ltd. All rights reserved.