An agreement has been reached between the U.S. and Taiwan on the first part of their “21st Century” trade initiative, which focuses on customs and border procedures, regulatory practices, and small businesses, according to a statement from the U.S. Trade Representative’s office. Once the initial agreement is signed, negotiations will continue on other complex trade issues, such as agriculture, digital trade, labor and environmental standards, state-owned enterprises, and non-market policies and practices. The aim is to finalize negotiations on all remaining matters by the end of the year. The trade pact is not expected to change goods tariffs, but it will strengthen economic bonds between the U.S. and Taiwan, open Taiwan to more U.S. exports, and resist economic coercion from China. The texts on customs and trade facilitation will make it easier for U.S. firms to export products to Taiwan, while the texts on regulatory practices and services regulation facilitate the operation of firms across borders and promote fair competition. The trade agency added that anti-corruption and small- and medium-sized enterprises texts aim to encourage cross-border investment and finance in the sector.