“We believe that there is a lot that can be done in the relationship right now” without launching free trade talks, Deputy U.S. Trade Representative Karan Bhatia told reporters after meetings this week with Taiwan officials.

“We’ve got over US$60 billion in two-way trade and we want to see it continue to grow,” Bhatia said.

The two sides agreed this week to establish a consultative committee on agriculture to discuss technical barriers to trade and plan to hold their first meeting this fall, he said.

The United States will use the forum to press Taiwan to fully reopen its market to U.S. beef exports, while Taiwan is seeking the elimination of certain barriers to its fruit and vegetable exports, Bhatia said.

Washington and Taipei are also “getting close” to launching talks on an agreement aimed at stimulating direct investment in each other’s market, he said.

Before taking the final step, the United States wants to make sure Taiwan is prepared to provide sufficient protections for U.S. investors, Bhatia said. The Taiwan team raised their interest in a more comprehensive free trade agreement like the United States has negotiated with South Korea, Bhatia said.

However, the June 30 expiration of the White House’s trade promotion authority makes that impossible, Bhatia said.

That legislation allowed the White House to negotiate trade deals that lawmakers must approve or reject without making changes. It’s considered essential to getting trade deals through Congress without them falling apart.

Bhatia said that was the only legal barrier stopping the United States from beginning free trade talks with Taiwan, which China considers a renegade province.

But the Bush administration won’t make any decision about new free trade talks until Congress “sees fit to give us renewed trade promotion authority,” he said.

Democratic leaders in Congress have ruled out any early renewal of that law.

Many Democrats elected to Congress for the first time last year are skeptical of trade deals, which they believe lead to job losses at home.