The United States and Taiwan have formalized a trade agreement that lowers US tariffs on Taiwanese exports and secures Taiwanese spending commitments on American products.

The deal, first announced in January, reduces US tariffs on many Taiwanese goods from 20% to 15% and encourages investment in the US technology sector.

US Trade Representative Jamieson Greer said the agreement will eliminate tariff and non-tariff barriers facing US exports to Taiwan and will strengthen supply chain resilience, particularly in high-tech industries.

The pact still requires review and approval by Taiwan’s opposition-controlled parliament before it comes into effect.