Taiwan and the United States have reached a "general consensus" on a trade pact aimed at reducing U.S. tariffs on Taiwanese exports, according to officials in Taipei. Taiwan's Office of Trade Negotiations announced Tuesday that the framework of an agreement had been established after months of discussions with U.S. representatives.

The primary objective of the negotiations was to achieve reciprocal tariff reductions without imposing cumulative tariffs, and to secure preferential treatment under Section 232, the office stated, as reported by AFP news agency. The trade office did not immediately respond to Al Jazeera's request for further comment.

The potential trade deal arrives amid ongoing geopolitical tensions in the region, particularly concerning China's stance on Taiwan. Economically, the agreement could provide a boost to Taiwan's export-oriented economy, which is heavily reliant on trade with the U.S. Reduced tariffs could make Taiwanese goods more competitive in the U.S. market, potentially increasing export volumes and revenues.

Section 232 of U.S. trade law allows the president to impose tariffs on imports that are deemed a threat to national security. Securing preferential treatment under this section could shield Taiwan from potential future tariffs imposed by the U.S. on national security grounds.

The U.S. has been seeking to strengthen economic ties with Taiwan, viewing it as a key partner in the Indo-Pacific region. This trade agreement is part of a broader strategy to counter China's growing economic influence.

While the "general consensus" indicates significant progress, the specific details of the agreement, including the extent of tariff reductions and the specific goods covered, remain to be finalized. The next steps will likely involve further negotiations to iron out these details and formalize the agreement. The timeline for the finalization and implementation of the trade pact is currently unclear.