Taipei: Agriculture Minister Chen Junne-jih on Wednesday pledged support for domestic peanut farmers amid concerns over the impact of a planned zero-tariff policy on U.S. imports. The policy, part of the Taiwan-U.S. Agreement on Reciprocal Trade (ART), has yet to take effect but has raised fears of increased competition.
According to Focus Taiwan, Chen stated that the government would promote Taiwanese peanuts by highlighting their distinct qualities and strengthening marketing efforts. He emphasized that local peanuts account for about 75 percent of the domestic market and assured that tariff-free imports would not mean abandoning local producers. At the Legislature, Kuomintang (KMT) lawmaker Chang Chia-chun highlighted that domestic peanuts cost roughly three times more than U.S. imports and raised concerns about "origin washing." Chen responded by stating that processed products would be required to clearly indicate their country of origin.
Chen further added that the government is purchasing fresh peanut pods and setting up drying centers to help reduce costs. Agriculture Deputy Minister Hu Jong-i mentioned that around 20-30 percent of domestic production could be affected by the policy. He noted that imported U.S. peanuts cost significantly less than local products, although Taiwan relies on imports for only 30 percent of its consumption. The Ministry of Agriculture stressed that price is not the only factor in agricultural sales, citing quality and consumer preferences.
Also on Wednesday, the ruling Democratic Progressive Party (DPP) caucus acknowledged that while the ART could affect some industries, it offers broader benefits to Taiwan. DPP caucus chief Chuang Jui-hsiung stated that additional support for peanut farmers would be necessary, pointing out that the Cabinet has established a NT$30 billion (US$950 million) agricultural stabilization fund.
According to Ministry of Agriculture (MOA) data, most peanuts are grown in Changhua and Yunlin counties, with the cultivated area shrinking from about 19,000 hectares in 2020 to 15,000 hectares in 2025. Currently, most imported peanuts come from India, Argentina, and Brazil, with U.S. imports accounting for less than 1 percent.