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Benefits outweigh effects of WTO entry, offical says

The nation's unemployment rate is expected to increase further after Taiwan's accession to the WTO, but only temporarily, an official from the Ministry of Economic Affairs said yesterday.

But WTO entry will also bring many benefits to Taiwan, including US$600 billion in new business opportunities, said Steve Chen (陳瑞隆), vice minister of economic affairs.

Despite the short-term negative effect of WTO entry, the situation will improve in the long run as Taiwan adjusts its industrial structure and job seekers learn new skills to cope with the changes, Chen said.

Chen quoted a recent assessment made by the Council for Economic Planning and Development, which predicted that the nation's unemployment rate will rise 0.22 percent in the short term following WTO accession.

He added that the agricultural sector is expected to be the hardest hit. Quoting a survey conducted by the Council of Agriculture, Chen said some 100,000 farmers are expected to become unemployed once Taiwan enters the WTO.

But the figure could be substantially smaller -- as low as 30,000 to 40,000 -- because 86 percent of the nation's farmers are just moonlighting while just 14 percent work full-time, Chen said.

He added that the Council of Agriculture is working on a package designed to help farmers to transfer to new jobs or start their own businesses.

Meanwhile, Chen said the business opportunities after entry are great.

"After Taiwan signed government procurement agreements with 28 member countries, Taiwan would be afforded US$600 billion in business opportunity from these countries. It's a good deal for Taiwan," Chen said.

Taiwan could not have gained access to these opportunities before entering WTO, Chen said.
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