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Former policymaker calls for progress on free-trade ports

To persuade local and multinational enterprises to keep their operational headquarters in Taiwan, a former senior economics official yesterday urged the government to speed up the establishment of free-trade ports.

Schive Chi (薛琦), former head of the Council for Economic Planning and Development (CEPD), said that the to-be-designated free-trade ports should not discriminate against China-funded companies, adding that the project's success lies in the development of cross-strait relations and the implementation of direct links across the Strait.

Schive, president of the Taiwan Academy of Banking and Finance (台灣金融研訓院), made the comments while speaking to local business groups.

The CEPD on Tuesday finalized its plan establish free-trade ports in Keelung Harbor, Taoyuan's international airport district, Kaohsiung Harbor and Kaohsiung's Hsiaokang Airport -- aiming to cut the nation's shipping fees by NT$200 billion per year.

According to the council, free-trade ports will work similarly to special trade-zones, where lower international tariffs will be offered, customs procedures curtailed and preferential land acquisition provided to makers of semi-finished goods.

Since products made in Taiwan are 5 to 10 percent more expensive than similar ones made in China, the nation's electronic makers may act on the council's plan and build their manufacturing bases in the ports to take advantage of the lower costs, said Luo Huai-jia (羅懷家), executive director of the industry policy center at the Taiwan Electrical and Electronic Manufacturers' Association (電電公會).

Luo complained, however, that the plan would be less than perfect if China does not regard the free-trade ports as off-shore and insists that cross-strait transportation be made via a third location.
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