“We can find a compromise to move both bills forward jointly, but it will require the Chairman and Ranking member to demonstrate some flexibility in their approach,” said Chairman Menendez
WASHINGTON – Today, U.S. Senator Bob Menendez (D-N.J.), Chairman of the Senate Foreign Relations Committee and Co-chair of the Senate Taiwan Caucus, delivered remarks before the Senate Finance Committee reaffirming his commitment to strengthening the economic bonds between the United States and Taiwan. Chairman Menendez stressed the importance of a compromise to ensure bills taken up in the Foreign Relations and Finance Committees on the issue move forward jointly through Congress.
“I intend to vote in favor of the bill today even though I have deep concerns that this legislation alone is insufficient. While a treaty with Taiwan is not possible given its status, we can and should insist that the US and Taiwan conclude a binding tax agreement and that Congress approve it, said Chairman Menendez.
“Now, I believe, as we have discussed, that we can find a compromise to move both bills forward jointly, but it will require the Chairman and Ranking member to demonstrate some flexibility in their approach, as Senator Risch and I have said we are willing to have flexibility in our approach as well,” continued Chairman Menendez.
WATCH THE CHAIRMAN’S OPENING REMARKS HERE
A copy of the Chairman’s remarks, as delivered, have been provided below.
As Chair of the Foreign Relations Committee and co-chair of the Taiwan caucus with Senator Tillis, I’m committed to strengthening economic bonds between the United States and Taiwan. And I appreciate that the Chairman and Ranking Member share this commitment.
As such, I intend to vote in favor of the bill today even though I have deep concerns that this legislation alone is insufficient. While a treaty with Taiwan is not possible given its status, we can and should insist that the US and Taiwan conclude a binding tax agreement and that Congress approve it.
The Taiwanese want an agreement because it bolsters their legitimacy and because the absence of one will hamper their ability to conclude agreements with other nations. Our businesses rely on agreements for certainty and dispute resolution that are unattainable through changes to domestic tax law alone. And as Senators we should insist on Congressional approval rather than delegating more authority to the executive branch.
In July, the Foreign Relations Committee reported out the Taiwan Tax Agreement with overwhelming bipartisan support, including from several members who also sit on this Committee. That bill authorizes conclusion of a tax agreement with Taiwan and establishes a Congressional approval mechanism. It creates the framework needed to advance our relationship with Taiwan, provides legal certainty to industry, and protects Congressional prerogatives.
Now, I believe, as we have discussed, that we can find a compromise to move both bills forward jointly, but it will require the Chairman and Ranking member to demonstrate some flexibility in their approach, as Senator Risch and I have said we are willing to have flexibility in our approach as well.
So I hope, Mr. Chairman, I can ask for your commitment to continue to work with us towards a compromise that allows for speedy enactment of both bills, and I think that would be a great result.
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