Taipei, Taiwan - The US and Taiwan said Thursday they signed a deal to confirm lower tariffs on the island's goods, alongside Taiwanese spending commitments on American products.

The announcement formalizes an agreement unveiled in January to cut US tariffs on many Taiwanese exports from 20% to 15%, and boost investment in the US tech industry.

Thursday's trade pact, which needs to be reviewed by Taiwan's opposition-controlled parliament, "will eliminate tariff and non-tariff barriers facing US exports to Taiwan," said US Trade Representative Jamieson Greer.

"This agreement also builds on our longstanding economic and trade relationship with Taiwan and will significantly enhance the resilience of our supply chains, particularly in high-technology sectors," he added in a statement.

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Taiwanese Vice Premier Cheng Li-chiun said the deal puts Taiwan on a "fair footing to compete with our rivals."

"Compared with our competitor countries, we have even gained a relative advantage, because the gap created by FTAs that previously left us behind has effectively been closed this time," Cheng told a press conference in Washington, referring to free trade agreements.

Cheng said Taiwan had secured "Most Favored Nation" tariff treatment and reduced the average levy "on our exports to the US from an initial 15%, without stacking reciprocal tariffs, further down to an average of 12.33%."

Taiwan plans to facilitate a "long-term increase in its purchases of important US goods" through 2029, according to a fact sheet released by the USTR's office.

These include $44.4 billion in liquefied natural gas and crude oil, $15.2 billion in civil aircraft and engines, as well as $25.2 billion in power equipment, power grids, and other products.

The fact sheet added that Washington has committed to reducing its tariffs on Taiwanese goods given Taipei's commitments towards "significant steps to advance a stronger and more reciprocal trade relationship."

Among other moves, Taiwan committed as well to reducing most tariff barriers and provide preferential market access for US industrial and agriculture exports.