Reagan Orders Retaliation in Taiwan Trade

President Reagan has asked U.S. Trade Representative Clayton K. Yeutter to develop retaliatory measures against Taiwan to protest that country’s restrictions on the sale of U.S. beer, wine and tobacco products, it was announced Tuesday.

In exercising his authority to order retaliation under the Trade Act of 1974, Reagan charged that Taiwan’s trade practices are unjustifiable, unreasonable and restrict U.S. commerce, a statement issued by Yeutter said.

The President told Yeutter to develop “appropriate retaliatory measures” following the breaking off of negotiations between Taiwanese authorities and the United States on Oct. 7.

“This Administration will not tolerate broken promises nor will we allow our trading partners to erect unfair trading barriers to U.S. goods and services,” Yeutter said.

Last October, Taiwan agreed to provide greater market access for U.S. beer, wine and tobacco within six to 12 months to avoid retaliatory measures by the United States, Yeutter said.

“A year has passed and Taiwan has not honored its agreement,” he said. “The importation and distribution of beer, wine and cigarettes remains under the control of the Taiwan Tobacco and Wine Monopoly Bureau, which has failed to implement the steps necessary to provide access to the Taiwan market. As a result, foreign firms are still effectively excluded from Taiwan’s market.”

Debra Busker, a spokeswoman for the U.S. trade representative, said the United States has less than 1% of the tobacco market in Taiwan, while seven types of U.S. wines are sold and beer is excluded.