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Taiwan to Take Steps to Boost U.S. Imports : Commerce: The island’s trade surplus with America has been rising again, and it wants to head off friction.

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From Reuters

Worried by worsening friction with the United States over its growing trade surplus, Taiwan plans a drive to expand U.S. imports.

American suppliers will be given priority as Taiwan increases purchases of foreign equipment and materials for its six-year, $300-billion economic development plan, a spokesman for the Board of Foreign Trade said last week.

“We are worried about our rising trade surplus with the United States but hope the phenomenon will be temporary as imports for the six-year plan increase,” he said.

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“The trade surplus, and the approach of the U.S. presidential elections, have caused frictions to rise to a high level,” a senior trade official said.

He said Taiwan will send buying missions to the United States to purchase more U.S. goods. Items bought for the six-year plan may include equipment for power plants, communications projects and environmental facilities, he said.

Tension between Washington and Taipei has worsened this year with the renewed widening of the trade gap, which had fallen from a record high of $16 billion in 1987 to $8.2 billion in 1991.

The surplus jumped 49% in the first four months of this year from a year earlier to $2.44 billion, as an improving U.S. economy took in more imports.

Washington last month placed Taiwan on a list of countries failing to protect U.S. intellectual property rights, meaning the island may face economic sanctions.

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