Industry urges Taiwan to fast-track trade pacts

2014-07-30

Taiwan should pursue greater trade liberalization and seek an expanded role in regional economic integration so as to avoid being left behind rivals, according to industry representatives attending the national trade and economic affairs conference July 27 in Taipei City.

“The country’s industrial sector will feel significant pressure as mainland China and South Korea finalize free trade agreement negotiations by the end of this year,” said Wang Cheng-ching, chairman of Taiwan Association of Machinery Industry.

According to Wang, it is expected that more than 700 machinery products exported by Taiwan to mainland China will bear the brunt of the FTA as South Korea is the nation’s top competitor in this vital market.

“Taiwan’s US$6 billion to US$7 billion of machinery exports will be hit hard,” he said, adding that manufacturers are facing a loss of around US$1.2 billion.

“There is no question in my mind that FTA-affected manufacturers will relocate abroad if the government fails to address this issue and implement the Cross-Strait Trade in Services Agreement and make headway on a trade in goods pact with mainland China.”

Tsou Juo-chi, chairman of Kaohsiung-headquartered China Steel Corp., echoed Wang’s remarks, claiming that Taiwan’s steel industry stands to suffer if the country is excluded from regional trade blocs such as the Trans-Pacific Partnership and Regional Comprehensive Economic Partnership.

“Not only heavy industry, but small and medium enterprises will benefit from regional integration,” Tsou said. “SMEs provide the bulk of Taiwan’s exports and are an important link in the global value chain.”

Tsou, whose firm generates NT$1.25 trillion (US$41.7 billion) in annual revenue and employs around 70,000 workers, urged the government to prioritize securing a place for Taiwan in the TPP and RCEP.

In response, National Development Council Minister Kuan Chung-ming said internationalization is the only path for Taiwan going forward. “We expect progress in cross-strait exchanges to help advance Taiwan’s participation in global as well as regional economic integration.”

Co-organized by the NDC and Ministry of Economic Affairs, the national trade and economic affairs conference is a platform for all segments of society to voice their opinions on Taiwan’s economic development in the context of regional economic integration and cross-strait trade exchanges.

Points of consensus from four previous regional meetings were addressed at the three-day conference at Taipei International Convention Center, which wrapped up July 28.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xitem=220061&CtNode=415)