S. 1824: Taiwan PLUS Act

The Taiwan PLUS Act is a proposed piece of legislation aimed at enhancing defense cooperation between the United States and Taiwan. The main points of the bill are as follows:

Key Findings

The bill outlines several important findings regarding Taiwan:

• Taiwan is the seventh largest trading partner with the United States.
• It is recognized by 12 countries as an independent state and is treated as a major non-NATO ally by the U.S.
• The U.S. National Defense Strategy prioritizes the protection of allies and partners, including Taiwan.
• The U.S. has committed to providing Taiwan with defense capabilities under the Taiwan Relations Act, helping Taiwan maintain a self-defense capability.
• Historical data shows Taiwan has been a significant customer of U.S. defense articles and services, receiving a substantial amount of military assistance over the years.

Sense of Congress

The legislation states the following sentiments of Congress:

• Support for enhanced defense cooperation with Taiwan is crucial for U.S. national security.
• Congress should consider Taiwan as part of the NATO Plus community, which includes countries such as Japan and Australia, granting it similar rights and privileges regarding defense cooperation.

Enhanced Defense Cooperation

The act proposes several mechanisms to strengthen defense ties with Taiwan:

• For a period of five years, Taiwan will be treated similarly to countries under certain U.S. defense laws, easing processes for defense sales and cooperation.
• The Secretary of State has the authority to extend this special treatment in five-year increments if it is determined to be in the U.S. national security interest.

Applicable Laws

The bill specifies various legal provisions related to arms exports that will apply to Taiwan during the five-year period. This includes sections of the Arms Export Control Act that generally govern how defense articles and services are sold and shared with international partners.

Reporting Requirements

The Secretary of State must inform Congress about the decision to continue the provisions and any determinations related to Taiwan's defense cooperation at least 14 days before the commencement of any extended period.

Overall Purpose

The primary purpose of the Taiwan PLUS Act is to formalize and enhance the defense relationship between the U.S. and Taiwan, allowing for improved military cooperation that aligns with U.S. national security objectives.

Relevant Companies

• BA - Boeing: As a major defense contractor, Boeing is likely to see increased demand for military aircraft and technologies if defense sales to Taiwan are enhanced.
• RTX - Raytheon Technologies: This company may benefit from increased sales of missiles and defense systems to Taiwan.
• LDOS - Leidos: As a provider of defense and intelligence services, Leidos may experience growth in contracts tied to Taiwanese defense capabilities.