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UK seeks to discuss lifting Taiwan's trade restrictions

"We would like to see UK companies that are registered in Taiwan treated on the same basis as Taiwanese companies."

Michael Reilly, director of the British Trade and Cultural Office

The UK seeks to discuss with the Taiwanese government the lifting of Taiwan's restrictions on government procurement and imports from China when the British trade minister visits Taipei next month, British Trade and Cultural Office Director Michael Reilly said on Thursday.

He said British Minister of State for Trade and Investment Lord Digby Jones would visit Taiwan next month to promote two-way trade and investment between the UK and Taiwan and to have discussions with local authorities in hopes that those restrictions can be lifted.

"Taiwan is quite an open market but there are a number of restrictions on trade that mean it's not as attractive a market as it could be," said Reilly, referring to regulations that basically restrict government procurement to Taiwanese firms.

Reilly said such a restriction is "very discriminatory."

Taiwan, which became member of the WTO in 2002, failed to join the Government Procurement Agreement under the WTO because of opposition from China.

Even if a foreign company sets up a branch office in Taiwan, employs Taiwanese people and pays tax in Taiwan, Reilly said, it is still not permitted to bid for government projects. In the UK, a Taiwanese company that sets up offices in the UK is allowed to bid for UK government contracts on the same basis as a UK company.

"We would like to see a bit of reciprocity in this area," he said, adding that "we would like to see UK companies that are registered in Taiwan treated on the same basis as Taiwanese companies."

Another issue of concern to many foreign companies is the ban on a wide range of imports from China, Reilly said, adding that all this does is lead to higher prices for Taiwanese consumers.

"Taiwanese are the biggest employers in mainland China rather than UK companies. So these restrictions actually make Taiwan lose out," he said, adding that "it does not affect the mainland. It does mean that Taiwan's economy suffers."
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