NCD calls for cross-strait FEPZ collaboration

2014-08-28

Taiwan and mainland China should consider zonal collaboration before embarking upon large-scale market liberalization, according to National Development Council Deputy Minister Kao Shien-quey Aug. 26.

“The Shanghai Free Trade Zone is a starting point for such an initiative, with agriculture, customs clearance and services trade the most likely areas of cooperation,” Kao said. “The NDC is consulting the Council of Agriculture, Financial Supervisory Commission and Ministry of Economic Affairs for possible collaboration models.”

Kao made the remarks during a cross-strait free economic pilot zone collaboration forum in Taipei City.

According to the deputy minister, it is hoped that agricultural products processed in Taiwan’s FEPZs can be exported to mainland China through the Shanghai FTZ or via similar arrangements.

Citing ornamental fish exports as a candidate for customs cooperation, Kao said under current regulations shipments to mainland China must be quarantined for 30 days, a lengthy process impacting the health and appearance of fish. “Cross-strait collaboration could fast-track procedures by having all or part of the quarantine implemented in Taiwan’s FEPZs,” she said.

In terms of services trade, Kao said Taipei and Beijing can work to strengthen cross-strait banking operations in a number of ways such as greenlighting Taiwan subsidiaries operating from the Shanghai FTZ to borrow yuan from their parent companies located in Taiwan’s FEPZs.

The deputy minister also identified mainland Chinese Internet restrictions as a problem for local e-merchants trying to tap markets on the other side of the strait. “This is another issue that can be addressed through zonal cooperation.”

Shanghai FTZ Deputy Director Chu Min, who is taking part in the forum, described the proposal as constructive and called for further discussions on the matter.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=221060&CtNode=413)