Cabinet OKs trade liberalization program top-up

2015/09/14

An NT$10 billion (US$309.2 million), 10-year draft program aimed at further minimizing the impact of trade liberalization on at-risk Taiwan enterprises and workers was greenlighted Sept. 10 by the ROC Cabinet.

The planned allocation supplements a budget of NT$98.2 billion prescribed under the original support initiative of 2010. It focuses on assisting small and medium enterprises realign organizational structure and strengthen competitiveness.

Wu Ming-ji, director-general of the Ministry of Economic Affairs’ Industrial Development Bureau, said a key component of the undertaking involves setting up a monitoring process for reviewing the effects on local industries of free trade agreements signed by Taiwan and its trading partners.

“Other measures in the pipeline include the provision of up to NT$5 million in subsidies for individual SMEs sustaining damage or losses from FTAs.”

At present, 22 industries are listed by the bureau for prioritized state-backed assistance. These are bedding, ceramics, footwear, home appliances, hosiery, knitwear, pesticides, ready-made clothing, swimwear and underwear.

According to Wu, the impact of free trade will be regularly put under the microscope by experts, with reappraisals conducted on a three-year rolling basis to determine the results of government support and adjust funding. “In addition, the initiative is open to backing from businesses and individuals reaping the rewards of Taiwan’s trade liberalization,” he said.

“We are optimistic that this give-and-take mechanism will provide much-needed impetus for advances in this regard while taking care of local interests.”

The draft program will be sent to the Legislature for deliberation during the upcoming session commencing September.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=236498&ctNode=2194&mp=9)