The initial accord established under a trade initiative between the United States and Taiwan is set to take effect today, as both governments reported, with Taipei optimistic that a series of current negotiations will ultimately result in a free trade agreement.

Taiwan was left out of the US-led Indo-Pacific Economic Framework, which is part of the Biden administration's strategy to address what it describes as Beijing's growing economic and military pressure in the area, when it was established in 2022.

However, the United States subsequently established the US-Taiwan Initiative on 21st Century Trade, which integrated the US-Taiwan Economic Prosperity Partnership Dialogue with the Technology Trade and Investment Collaboration Framework that both parties possess.

In a statement, U.S. Trade Representative Katherine Tai announced that the initial pact under the 21st Century Trade initiative, which will take effect, addresses topics such as anti-corruption, customs management, trade facilitation, and support for small and medium-sized businesses.

"The entry into force of the first agreement under our 21st Century Trade Initiative represents an important step forward in strengthening the US-Taiwan economic and trade relationship," she said.

Taiwan's Office of Trade Negotiations said in a separate statement the agreement showed the "rock solid partnership" between Taiwan and the United States.

"Given the highly volatile global situation, it is of strategic significance for Taiwan to consolidate and expand its relationships with important economic and trade partners," it said.